New York Employment Law Updates 2025

Staying on top of new employment regulations is essential for business owners in New York. In 2025, several significant changes have gone into effect, impacting everything from minimum wage to paid leave and workplace safety. Understanding these updates can help reduce legal risk and ensure compliance with state laws. If you have questions about how these changes affect your contracts or policies, contact our New York employment contract lawyer.

Increases to Minimum Wage Requirements

New York continues its annual effort to increase wages across the state. As of January 1, 2025, minimum wage rates have risen:

• In New York City, Long Island, and Westchester County: $16.50/hour
• In the rest of the state: $15.50/hour

On January 1, 2026, the minimum wage is expected to be $17.00 per hour in NYC, Long Island, and Westchester, and $16.00 per hour elsewhere in New York.

For businesses that employ tipped workers, separate minimum cash wage and tip credit rules still apply. Employers should evaluate current pay structures to ensure full compliance, especially when planning raises or bonuses.

Higher New York State Exempt Salary Threshold

New York has once again raised the minimum salary requirement for employees to qualify as exempt from overtime. Starting January 1, 2025, these thresholds have increased as follows:

• New York City, Long Island, and Westchester: $1,237.50 per week (or $64,350.00 annually)
• Rest of the state: $1,161.65 per week (or $60,405.80 annually)

On January 1, 2026, businesses should anticipate another hike in the minimum salary requirements for exempt executive and administrative staff. Specifically, the weekly minimum will rise to $1,275.00 in New York City, Long Island, and Westchester, while the rest of New York State will see an increase to $1,199.10 per week.

This significant change will affect how businesses classify and compensate employees. Employers who incorrectly classify employees as exempt based on outdated salary levels may be subject to wage and hour claims.

It's also important to note that New York's thresholds are higher than the federal requirement ($684 per week), so local businesses must meet the state standard. Review all employee classifications and update payroll accordingly.

These updates affect:

• Administrative, executive, and professional employees
• Certain commissioned sales roles
• Small businesses with tight salary structures

Employers should consult their legal counsel or HR team to review exemption statuses to avoid back pay liability.

Pregnancy-Related Paid Leave Benefits

Effective January 1, 2025, updates to New York Labor Law §196-B expand the use of paid sick leave to include pregnancy-related needs. Employees may now use accrued paid sick leave for pregnancy-related health issues, including:

• Prenatal medical appointments
• Complications during pregnancy
• Recovery time following miscarriage

This change aligns New York law more closely with federal protections and sends a strong signal of support to working parents. Employers should revise internal policies and employee handbooks to reflect this broadened eligibility.

Required Compensated Breaks for Nursing Mothers

Beginning in June 2025, New York Labor Law § 206-c will now mandate paid breaks for nursing mothers to express breast milk in the workplace. Key provisions include:

• Paid breaks "as needed" for expressing milk
• Duration and frequency based on individual need
• A private, sanitary location (not a restroom) for pumping

Employers must also post a written policy and provide it to all new hires and returning employees after childbirth. This change is particularly impactful for smaller businesses without existing lactation accommodation policies.

Expiration of Coronavirus Sick Leave Provisions

The COVID-19 paid sick leave law enacted in 2020 has now expired. As of January 1, 2025, employers are no longer required to provide additional paid leave for COVID-19 isolation or quarantine.

Businesses should:

• Remove COVID-specific leave policies
• Revert to standard paid sick leave under NY Labor Law §196-B
• Update employee communications accordingly

NY Clean Slate Act Implementation

The New York Clean Slate Act, signed into law in 2023, officially takes effect in July 2025. This legislation seals certain criminal records after a set time period, offering second chances to rehabilitated individuals.

Implications for employers:

• Misdemeanor convictions will be sealed after 3 years (if no new convictions occur).
• Felony convictions will be sealed after 8 years (excluding certain serious crimes).
• Sealed convictions cannot be considered in employment decisions.

Under the law, businesses are prohibited from asking about or acting upon sealed records in most hiring contexts. Exceptions exist for specific regulated industries (e.g., healthcare, law enforcement).

Employers should:

• Revise background check policies
• Train hiring managers on what questions are permissible
• Work with legal counsel to ensure compliance

This shift reflects a broader trend toward fair hiring practices. Employers that adjust proactively will minimize legal risk while expanding their talent pool.

Safety Protections for Retail Employees

The NY Retail Worker Safety Act, effective March 2025, establishes new safety protocols for retail establishments. Highlights include:

• Mandatory safety plans for preventing and responding to workplace violence
• Panic button requirements for certain high-risk retail settings
• Regular safety training for retail employees

The Act applies to stores with at least 10 employees or over 5,000 square feet of space. Employers should begin preparing now to:

• Draft and implement compliant safety policies
• Install necessary safety devices
• Train supervisors and frontline staff

These requirements aim to reduce violent incidents, protect employees, and improve response protocols.

Get Straightforward Answers to Your NY Business Law Questions — Contact Lawyer For Business

The employment law landscape in New York is growing more complex each year. For small and midsize business owners, it can be overwhelming to stay compliant without timely and straightforward legal help and advice. Our knowledgeable and skilled New York business lawyer can provide the following:

• Interpretation of new laws
• Proactive compliance strategies
• Risk mitigation and defense if claims arise
• Ongoing support as your team grows

Work with our experienced New York business lawyer to protect and grow your company. Help is only a quick phone call away. Schedule a consultation today for personalized, comprehensive guidance for 2025 and beyond.