New York Employment Law Changes Impact Employers in 2026

Significant changes to employment laws in New York are set to take effect over the next few years, impacting how employers manage employee benefits and hiring processes. These updates aim to enhance worker protections and clarify employer responsibilities, necessitating immediate attention from businesses operating within the state and New York City.

Amendments to the Earned Safe and Sick Time Act

The amendments to the Earned Safe and Sick Time Act (ESSTA) became effective on February 22, 2026. Under the revised law, employers are now required to provide an additional 32 hours of unpaid safe and sick time to eligible employees, supplementing the paid time already mandated by ESSTA. This unpaid leave must be made available at the time of hire and at the commencement of each subsequent year, though it will not carry over from one year to the next. Employees can utilize this unpaid leave immediately upon availability.

Employers are obliged to grant safe and sick time if an employee requests it, unless the employee has no time accrued or explicitly opts to use a different form of leave. The amendments also broaden the acceptable uses of safe and sick time, including circumstances related to caregiving, participation in legal proceedings for housing security, situations involving workplace violence, and disruptions caused by public health emergencies or disasters.

These changes align with modifications to New York City’s Temporary Schedule Change Act (TSCA), which has removed the requirement for employers to provide two TSCA days annually. Employees retain the right to request temporary schedule changes, but employers are no longer mandated to accommodate all such requests, although they must respond promptly.

Delay in Implementation of the Trapped at Work Act

On February 13, 2026, Governor Kathy Hochul signed amendments to the Trapped at Work Act (TAWA), postponing its implementation until February 13, 2027. The law prohibits employers from requiring employees to repay any employment-related costs, described as “employment promissory notes,” should they leave their positions before a specified time.

The amendments clarify acceptable agreements employers may enter into with employees, including those concerning the repayment of property purchased from the employer and certain incentive-related repayment agreements. Notably, the amendments also eliminate previous requirements for subsidiaries of covered employers to comply with TAWA, allowing both current and prospective employees to file complaints with the New York State Department of Labor. Penalties for violations can range from $1,000 to $5,000.

Restrictions on Using Credit History in Employment Decisions

Further changes to New York’s employment landscape are on the horizon, with amendments to the Fair Credit Reporting Act set to take effect on April 18, 2026. These amendments will prohibit employers from considering an individual’s consumer credit history in employment decisions, including hiring and compensation.

While the law, signed in December 2025, restricts employers from requesting consumer credit information, it includes several exceptions. Employers may still use credit history in specific situations, such as for positions requiring law enforcement background checks, security clearance, or roles with fiduciary responsibilities.

With these amendments, New York joins a growing number of states implementing similar restrictions on the use of credit history in employment decisions, aligning with policies already in place in New York City.

As these laws unfold, employers must stay informed and adapt their practices to ensure compliance, reduce risks, and foster a supportive work environment.