Category: New York

A slightly tired employee sitting at home, holding a phone to their ear to report being sick and unable to work, illustrating responsible sick leave under New York City’s ESSTA requirements.

NYC Earned Safe and Sick Time Act Expands in 2026

On September 25, 2025, the New York City Council approved major amendments to the NYC Earned Safe and Sick Time Act (ESSTA) and the Temporary Schedule Change Act (TSCA). The changes take effect February 22, 2026, and expand NYC employees’ rights to take both paid and unpaid leave for new categories of personal and family needs.

Legal Changes to NYC Safe and Sick Time

The NYC Council’s 2025 legislation (Int. 780-A) builds on the City’s long-standing earned sick and safe time requirements. The measure broadens the list of qualifying reasons for employees to take leave under ESSTA, while simultaneously repealing the separate Temporary Schedule Change Act and folding many of its protections into the ESSTA framework.

Under the new law, employees may use safe and sick time not only for their own or a family member’s illness, preventive care, or safe-time situations (such as domestic violence), but also for additional qualifying reasons, including:

  • Providing care for a child or a care recipient;
  • Attending a legal proceeding for subsistence benefits or housing;
  • Responding to a public disaster; and
  • Respond to workplace violence.

The New York City Department of Consumer and Worker Protection (DCWP) is expected to issue updated rules and forms before the February 2026 effective date to clarify how employers should apply these new qualifying reasons, particularly those involving “public disasters,” “workplace violence,” and care for “care recipients.”

A blue-tinted view of the New York City skyline with a transparent calendar graphic showing February 22, 2026, symbolizing the effective date of new Earned Safe and Sick Time Act amendments.
February 22, 2026 – New York City’s expanded Earned Safe and Sick Time Act takes effect.

Additional Unpaid Leave

Beyond the existing paid sick and safe time requirements, the amended NYC Earned Safe and Sick Time Act mandates that employers provide 32 hours of unpaid safe and sick time to every employee each year. This unpaid allotment must be made available upon hire and then front-loaded annually on each employee’s work anniversary or on a calendar-year basis.

The law thus introduces a new compliance complexity. Employers must now track both paid and unpaid safe/sick time balances for each employee in NYC.

Interaction with the Temporary Schedule Change Act

Currently, the TSCA allows employees to request temporary schedule changes for certain personal events. Beginning in February 2026, that separate law will be repealed. However, employees will continue to have the right to take time off for similar reasons through ESSTA. In practice, this simplifies administration by consolidating all short-term personal and family leave obligations into one statute.

Illustration of a clock and calendar merging into a single folder labeled “ESSTA,” symbolizing New York City’s integration of the Temporary Schedule Change Act into the Earned Safe and Sick Time Act.
New York City has consolidated temporary schedule change rights into the broader ESSTA framework.

Paid Prenatal Leave

The same legislation also introduces 20 hours of paid prenatal leave each year for employees covered by ESSTA. This addition is distinct from the City’s safe and sick time rules but appears in the same legislative package, signaling a broader City initiative to support family and reproductive health needs.

New York State law already separately requires 20 hours of paid prenatal leave annually. So the practical impact of this NYC amendment is likely to be minimal.

Compliance Steps for Employers

Photo of a compliance checklist titled “Employer Compliance Steps” with a New York City skyline in the background, symbolizing the steps employers must take to comply with the 2026 ESSTA amendments.
Employers should review policies, train managers, and update systems to comply with the 2026 ESSTA changes.

Employers operating in New York City should begin preparing now. Steps to take before the February 2026 effective date include:

  1. Review and update existing sick-leave and time-off policies to ensure the new qualifying reasons and unpaid-time provisions are included.

  2. Reconfigure payroll and HR systems to track both paid and unpaid ESSTA time separately.

  3. Train managers and HR staff on the expanded employee rights and the proper process for handling requests.

  4. Update required employee notices and postings once the DCWP issues revised forms and guidance.

  5. Coordinate state and city compliance, since the state NYS Paid Sick Leave Law still applies statewide.

Employers should monitor the DCWP’s Paid Safe and Sick Leave page for updated rules and required forms.

What Expanded NYC Earned Safe and Sick Time Means for Employers

The February 2026 changes mark the most sweeping update to New York City’s leave laws in several years. By expanding qualifying reasons, introducing an unpaid component, and integrating temporary schedule change rights into ESSTA, the City has created a unified framework for short-term employee absences.

Although this amendment applies only to NYC, employers elsewhere in the state should take note. The NYS Legislature has often followed NYC’s lead on similar workplace requirements. Remember, NYC had paid sick leave first before it was mandated statewide.

Employers who act early by revising policies, updating systems, and training supervisors will be well-positioned to comply and avoid penalties once the new law takes effect.

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2026 Paid Family Leave - Man Holding Dog with Woman Holding Baby

2026 Paid Family Leave in New York

The New York Paid Family Leave (PFL) Program provides partial pay for employees who take time off due to covered family situations. In 2026, paid family leave benefits are improving for employees. However, employee contributions are also increasing again.

Qualifying Circumstances

PFL provides up to 12 weeks of job-protected time off to:

  • Bond with a newborn, an adopted child, or a child in foster care;
  • Care for a family member with a serious health condition; or
  • Assist with family situations when a spouse, domestic partner, child, or parent is deployed on active military duty.

Covered Family Members

Family care leave covers caring for a spouse, domestic partner, child, parent, parent-in-law, sibling, grandparent, or grandchild with a serious health condition.

Employee Contributions

Even though benefits are expanding to cover more family members this year, the employee contribution rate for PFL is decreasing. For 2026, employees will contribute 0.432% of their gross wages per pay period. The maximum annual contribution for 2026 is $411.91, which is $57.38 more than in 2024.

2026 Paid Family Leave Benefits

The maximum weekly benefit for employees taking PFL will also increase in 2025. Eligible employees receive 67% of their average weekly wage up to a cap of 67% of the New York State Average Weekly Wage (AWW). The 2026 AWW is $1,833.63, making the maximum weekly benefit $1,228.53, which is $51.21 more than the maximum weekly benefit for 2025.

Preparing for 2026 Paid Family Leave Increases

Companies should confirm their 2026 paid family leave premiums with their insurance carriers. Then ensure next year’s payroll includes the correct contribution rates.

If your paid family leave policy reflected specific rates for paid family leave in 2025 (or earlier), you should update that information.

 

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New York Secure Choice - Man holding coffee on beach looking at sunrise

New York Secure Choice: Key 2026 Deadlines for Employers

New York Secure Choice, the state-facilitated Roth IRA program, officially launched on October 8, 2025. Covered employers face 2026 registration deadlines and new, ongoing payroll and notice obligations. Below is what New York employers need to know now, with the latest official dates and practical guidance.

The New York Secure Choice program only applies to private employers and their employees. Existing state retirement systems remain in place for the public (government) sector. New York joins more than a dozen states now mandating access to payroll-based savings plans in private employment.

Who’s Covered by New York Secure Choice

An employer is covered if it:

  • Has at all times during the previous calendar year employed at least 10 employees in New York;

  • Has been in business at least two years; and

  • Does not offer a qualified retirement plan (such as a 401(k), 403(b), SEP, SIMPLE, or 457(b)).

Employers meeting these criteria must register through the Secure Choice portal. However, those who meet the first two criteria, but already sponsor a qualified plan, must still log in to certify their exemption. Others may still choose to certify exemption (based on size or duration of business) to avoid complications.

At this point, it does not appear that otherwise exempt employers can voluntarily participate in Secure Choice.

Employees are eligible for the program if they are 18 or older and work for a covered employer in New York.

Effective Dates: Staggered 2026 Registration Deadlines

New York Secure Choice has published employer registration deadlines based on employer size:

  • 30 or more employees: March 18, 2026

  • 15–29 employees: May 15, 2026

  • 10–14 employees: July 15, 2026

Employers will receive notice as their deadline approaches, but registration is open now.

Infographic showing New York Secure Choice employer registration deadlines: 30+ employees—March 18 2026; 15–29 employees—May 15 2026; 10–14 employees—July 15 2026.

What the Program Is (and Isn’t)

The Secure Choice program is a state-sponsored, automatic-enrollment payroll-deduction Roth IRA program. It is not an ERISA plan. Employees are automatically enrolled unless they opt out, and each account is an individual Roth IRA owned by the employee, not the employer.

By default, contributions start at 3% of pay. Funds are initially placed in a principal protection option for approximately 30 days. Then they are transferred to an age-based target-date fund, unless the saver chooses otherwise. Employees can elect to automatically increase their contribution by 1% each year, up to a maximum of 10%. Participation is voluntary, and employees may opt out at any time.

Employers cannot make matching or other contributions to the Secure Choice IRAs. They may only deduct and remit from an employee’s earned wages.

As an IRA, employees maintain the same Secure Choice retirement account when they change jobs.

Employer Duties Once You’re in the New York Secure Choice Program

Once registered, employers must:

  1. Upload employee information to the Secure Choice portal.

  2. Allow the program to notify employees, who have a 30-day window to opt out or adjust their settings.

  3. Begin payroll deductions after that opt-out window closes.

  4. Remit employee contributions each pay period.

Employers must submit all employee contributions by the last day of the month following the month in which the corresponding wages were paid. Nonetheless, employers have no fiduciary responsibility for investments or plan management. Vestwell will administer the program, and The Bank of New York Mellon serves as custodian.

Exemptions and Existing Plans

Employers that already offer a qualified retirement plan are exempt from Secure Choice requirements but must certify their exemption through the portal. Certification helps the State track compliance and avoid unnecessary reminders or enforcement actions.

Enforcement and Penalties

The State has the authority to establish penalties for employers that do not register or remit contributions. As of now, however, no penalty schedule has been published. Enforcement guidance is expected closer to the 2026 registration deadlines.

Accordingly, you should monitor program updates in 2025 for the release of final enforcement procedures.

Practical Steps for Employers

1. Confirm coverage and timing.
Determine your employee count and identify which 2026 deadline applies to your business. Some companies will be close to the thresholds and need to carefully analyze their coverage status.

2. Decide whether to register or certify an exemption.
If you already sponsor a retirement plan, log in to the portal and certify your exemption. If not, register and prepare your payroll system for deductions.

3. Prepare for the 30-day employee opt-out window.
After you upload employees, the program will notify them directly. Payroll deductions begin only after this period expires.

4. Coordinate with your payroll provider.
Ensure your payroll system can support Secure Choice deductions and remittances.

5. Train HR and payroll staff.
They should understand the employer’s limited role—facilitating payroll deductions and data maintenance only. Employers may not provide investment or tax advice.

Why New York Secure Choice Matters

Secure Choice shifts the default for New York employers that don’t sponsor a plan. If you’re covered, you must either implement your own qualified plan or register with the State program on the applicable 2026 timeline. Taking proactive steps now will help you avoid last-minute compliance issues and ensure a smooth rollout when your registration window opens.

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