Category: New York

2025 Paid Family Leave

2025 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 2025, paid family leave benefits are improving for employees. However, employee contributions are also increasing after a couple of years of decline.

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 2025, employees will contribute 0.388% of their gross wages per pay period. The maximum annual contribution for 2023 is $354.53, which is $21.28 more than in 2024.

2023 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 2025 AWW is $1,757.19, making the maximum weekly benefit $1,177.32, which is $26.16 more than the maximum weekly benefit for 2024.

Preparing for 2025

Companies should confirm their 2025 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 2024 (or earlier), you should update that information.

 

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2025 New York Minimum Wage

2025 New York Minimum Wage

Do you know the 2025 New York minimum wage? Actually, there are different minimum wages for different parts of the state and different industries. Employers must be ready by the end of the year to meet the new requirements that apply to their employees.

The 2025 New York minimum wage rates are shaded in blue in the tables below. The changes take effect on January 1st.

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Standard New York Minimum Wage

The 2025 New York minimum wage varies by geographic location and sometimes by industry.

For most private employers, the 2025 New York minimum wage in the following chart applies. This chart also applies for non-teaching employees of public school districts or a BOCES. However, there is no New York minimum wage for other employees of public (governmental) employers (but the federal minimum wage of $7.25 does apply).

The chart also shows scheduled minimum wage increases for 2026.

General Minimum Wage Rate Schedule
Location202420252026
NYC, Long Island, & Westchester$16.00$16.50$17.00
Remainder of New York State$15.00$15.50$16.00

* After 2026, future New York minimum wage increases will occur based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. In other words, the minimum wage will be indexed to inflation.

Minimum Wage for Tipped Employees in the Hospitality Industry

New York State has separate minimum wage rules for employees in the hospitality industry. These rules apply to businesses running a restaurant or hotel.

The minimum wage rates for most non-tipped employees in the hospitality industry are set as per the schedule above. However, employers may count a portion of certain tipped employees’ gratuities toward the minimum wage requirements. This is known as a “tip credit.”

New York State has two separate cash wage and tip credit schedules for tipped hospitality employees who qualify as “food service workers” and “service employees.”

Food Service Workers

food service worker is any employee who is primarily engaged in serving food or beverages to guests, patrons, or customers in the hospitality industry who regularly receive tips. This includes wait staff, bartenders, captains, and busing personnel. It does not include delivery workers.

Hospitality Industry Tipped Minimum Wage Rate Schedule (Food Service Workers)
Location202420252026
NYC, Long Island, & Westchester$10.65 Cash
$5.35 Tip
$11.00 Cash
$5.50 Tip
$11.35 Cash
$5.65 Tip
Remainder of New York State$10.00 Cash
$5.00 Tip
$10.35 Cash
$5.15 Tip
$10.70 Cash
$5.30 Tip

Service Employees

The next schedule applies to other service employees. A service employee is one who is not a food service worker or fast food employee who customarily receives tips above an applicable tip threshold (which also follows schedules, not shown here).

Hospitality Industry Tipped Minimum Wage Rate Schedule (Service Employees)
Location202420252026
NYC, Long Island, & Westchester$13.35 Cash
$2.65 Tip
$13.75 Cash
$2.75 Tip
$14.15 Cash
$2.85 Tip
Remainder of New York State$12.50 Cash
$2.50 Tip
$12.90 Cash
$2.60 Tip
$13.30 Cash
$2.70 Tip

Overtime Threshold

Along with increases to the 2024 New York minimum wage, the salary requirement to maintain some overtime exemptions will also increase.

The salary threshold for New York’s executive and administrative exemptions go up on January 1st. These amounts are all higher than the federal Fair Labor Standards Act (FLSA) threshold, which is back down to $684/week after a federal judge enjoined the U.S. DOL’s rule that had initially increased it in July 2024. Most New York employers (other than governmental entities) must satisfy the higher New York threshold to ensure full overtime exemption.

There is no salary requirement for New York’s professional exemption. However, employers must also satisfy the FLSA threshold for most professional employees. Doctors, lawyers, and teachers do not have a salary requirement for exemption.

 

Executive & Administrative Exemption Weekly Salary Threshold Schedule
Location202420252026
NYC, Long Island, & Westchester$1,200.00$1,237.50$1,275.00
Remainder of New York State$1,124.20$1,161.65$1,199.10

Prepare Now for the 2025 New York Minimum Wage

New York employers should review their compensation levels and make necessary changes by January 1, 2025. Updates might result in increasing an employee’s hourly wage or salary or reclassifying exempt employees to non-exempt if they will no longer meet the exemption salary requirement.

And, remember, the 2025 New York minimum wage rates only last one year in some cases. Companies will have to review this again next year (or sooner).

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NYC Pet Leave

Paid Pet Leave for NYC Employees?

On October 23, 2024, a new pet leave bill was introduced before the New York City Council. The bill proposes to amend NYC’s Earned Safe and Sick Time Act (ESSTA) to allow employees to use paid sick time for the care of pets. Below is a summary of the proposal and insights on what employers should consider as this legislation progresses.

Key Provisions of the Pet Leave Bill

The proposed law, introduced by Council Members Shaun Abreu and Tiffany Cabán, expands the existing NYC sick leave to include absences related to the care of “covered animals.” Here are the essential elements:

  1. “Covered Animals” includes any animal primarily kept for companionship in compliance with local laws and service animals. This ensures a broad application, covering both household pets and certified service animals.
  2. Types of Permitted Leave: Under the new law, employees could use sick leave for:
    • Medical diagnosis, care, or treatment of an animal’s physical illness, injury, or health condition.
    • Preventive medical care for the pet.
  3. Existing Sick Leave Entitlement Remains Unchanged: The law does not increase the amount of sick leave available to employees. Instead, it adds pet care to the list of permitted uses for existing sick leave hours.
  4. Effective Date: Should the bill pass, it will take effect 120 days post-enactment, giving employers some time to adjust policies accordingly.

Implications for Employers

Policy Adjustments: Employers may need to revise their sick leave policies to explicitly include pet care as a covered absence.

Employee Documentation and Requests: As with other types of sick leave, it may be necessary to establish guidelines for requesting pet leave to prevent misuse. Unfortunately, employers don’t currently have much latitude in questioning sick leave requests.

Potential Operational Impacts: New York City has a high rate of pet ownership. Thus, the potential increase in short-term absences is worth consideration, especially for roles that require continuous coverage.

Supporting Employee Well-being: This initiative reflects a growing focus on mental health and well-being in the workplace. For employees, being able to care for their pets without the fear of losing pay or facing disciplinary action could enhance morale and reduce anxiety, particularly for those who rely on their pets for companionship. Employers should look for ways to benefit from the law. Some employers already allow pet care leave voluntarily.

Potential Pet Leave Implications Beyond New York City

The proposed pet leave bill specifically amends New York City’s ESSTA. IT would not directly apply to employees outside the City. However, New York State also has a statewide paid sick leave law modeled after NYC’s ESSTA. So, this proposal could prompt consideration of similar measures at the state level. If the pet leave bill gains support and proves effective in NYC, it may set a precedent that encourages the New York State Legislature to consider a statewide extension.

Employers across the state (and country?) should monitor this proposal as its implementation in NYC might foreshadow future legislative developments. In particular, those with locations in both New York City and elsewhere should evaluate how this potential change aligns with their broader leave policies.

Next Steps for Employers

The pet leave bill is still under consideration. However, employers should proactively evaluate their current leave policies and consider how they might integrate this potential change. By staying informed and prepared, businesses can ensure they remain compliant while demonstrating that they support their employees’ diverse needs.

As this bill advances through the New York City Council, stay updated and consult legal professionals if you need further guidance. This proposed change could set a precedent for future legislation that might even expand to other aspects of employee pet ownership.

Stay tuned for updates on the passage of this law and potential best practices for implementation!

 

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