Employers in the Empire State face several significant changes in 2025. These legal developments impact everything from sick leave to minimum wage. Here are the key takeaways for employers.
Paid Prenatal Leave
In April 2024, New York became the first state to require private employers to provide paid prenatal leave to employees. Effective January 1, 2025, employers must provide 20 hours of paid prenatal leave every year.
Under the law, employees can take leave for “health care services received by an employee during their pregnancy or related to such pregnancy, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to pregnancy.” Paid prenatal leave is a separate obligation from sick leave, which is already required by state and local law.
These benefits are available immediately upon hire. The leave can be taken in hourly increments and are paid at the employee’s regular rate of pay. Like other types of sick leave, paid prenatal leave does not need to be paid out upon an employee’s separation.
The New York Department of Labor (“NYDOL”) recently shared guidance to help employers navigate the law. The NYDOL has made clear that if an employee requires more than 20 hours of leave or requests an alternative accommodation, employers also may have obligations under other laws, such as the Pregnant Workers Fairness Act.
Minimum Wage
Effective January 1, 2025, the minimum wage in New York City, Long Island and Westchester County increased to $16.50 an hour. The minimum wage in the rest of the state increased to $15.50 an hour.
On January 1, 2026, the minimum wage in New York City, Long Island and Westchester County will increase to $17 an hour. The minimum wage elsewhere in the state will increase to $16 an hour. Moreover, the minimum wage for tipped service employees and home care aides will also increase.
Salary Thresholds for Overtime Exemptions
On January 1, 2025, the minimum salary threshold for the executive and administrative exemptions from overtime pay requirements in New York City, and Nassau, Suffolk, and Westchester counties increased to $1,237.50 per week, or $64,350 annually. On January 1, 2026, the threshold will again increase to $1,275 per week, or $66,300 per year.
For the remainder of the state, the threshold increased to $1,161.65 per week or $60,405.80 annually. It will increase on January 1, 2026, to $1,199.10 per week, or $62,353.20 annually.
Notably, New York’s minimum salary thresholds for the administrative and executive overtime exemptions are separate and higher than those established under the federal Fair Labor Standards Act.
Retail Worker Safety Act
In September 2024, Governor Hochul signed into law the Retail Worker Safety Act to require “retail worker employers to develop and implement programs to prevent workplace violence.” It applies to any “retail employer,” defined as “any person, entity, business, or company that has at least 10 employees working at a retail store.” A “retail store” is defined as “a store that sells consumer commodities at retail and which is not primarily engaged in the sale of food for consumption on the premises.” The law goes into effect March 3, 2025.
Employers subject to this new law will be required to adopt a retail workplace violence prevention policy, distributed to all employees upon hire and annually thereafter. The policy must include a list of factors that place retail employees at risk of violence and methods to prevent violence. Employers must also create and provide a workplace violence prevention training program, including de-escalation tactics and active shooter drills.
The Department of Labor will also create and publish a model retail workplace violence prevention policy and training program which employers are encouraged to use. Alternatively, employers can create their own training and policy.
Effective January 1, 2027, employers with over 500 retail employees must provide access to panic buttons throughout the workplace or provide employees with wearable or mobile phone-based panic buttons.
Safe Hotels Act
In early November, New York City Mayor Eric Adams signed into law the Safe Hotels Act to increase safety and staffing in New York City hotels. The Act requires hotels to receive a license from the Department of Consumer and Worker Protection to operate. Licenses cost $350 and are valid for two years. The law becomes effective on May 3, 2025, barring some contractual exceptions. The city law imposes several staffing requirements on employers. For example, the hotel must “directly employ” all “core employees,” and provide human trafficking recognition training and panic buttons to workers.
Sunset of COVID-19 Paid Emergency Leave
Beginning July 31, 2025, New York employers will no longer be required to provide paid time off for employees who are subject to isolation or quarantine because of COVID-19. Previously, employees were entitled to up to 14 days of job-protected leave if the employee had to quarantine or isolate and could not work remotely.