The most wonderful time of the year often portends many legal hiccups for the unassuming business. And this year is no different. As the holiday season approaches and we turn the calendar to 2025, New York employers should pay attention to several legal and regulatory changes taking effect in 2025 and beyond.
Wage & Hour Changes
As has become an annual tradition, New York employers should keep in mind the scheduled minimum wage increases set to go into effect on January 1, 2025 (and beyond).
Minimum Wage Increases
As outlined here, New York's Governor Hochul signed legislation adopting a three-year period of annual increases to the state's minimum wage rates, followed by a market-based approach to adjust minimum wage rates moving forward.
Effective January 1, 2025, all New York employers will face the following rate increases:
|
Effective Date |
New York City, Long Island, and Westchester |
Remainder of New York State |
|---|---|---|
|
January 1, 2025 |
$16.50 |
$15.50 |
|
January 1, 2026 |
$17.00 |
$16.00 |
As of January 1, 2027, subsequent minimum wage increases will be tied to the three-year average of a regional consumer price index, such that economic conditions could prevent a rate increase for a particular year. The New York Department of Labor ("NYDOL") is tasked with monitoring the statewide economy and adjusting the minimum wage accordingly. If the NYDOL determines a rate increase is appropriate, it will need to post the adjusted rate no later than October 1 of the year prior to the planned increase to give employers sufficient time to prepare.
Overtime Exemption Salary Threshold Increases
Per NYCRR § 142-2.14, employees who work in an executive or administrative capacity and who are paid a salary not less than the thresholds set by state regulations may be exempt from the state's overtime pay requirements.
As discussed here, beginning January 1, 2025, the following salary thresholds for the "executive" and "administrative" exemptions will take effect:
|
Effective Date |
New York City, Long Island, and Westchester |
Remainder of New York State |
|---|---|---|
|
January 1, 2025 |
$1,237.50/week ($64,350.00/year) |
$1,161.65/week ($60,405.80/year) |
|
January 1, 2026 |
$1,275.00/week ($66,300.00/year) |
$1,199.10/week ($62,353.20/year) |
As a reminder, New York does not have a higher salary threshold than federal law with respect to an "employee employed in a bona fide professional capacity." As such, the professional exemption under New York law will continue to be subject to the federal professional exemption salary threshold, currently set at $684.00 per week ($35,568.00 per year) after a federal judge recently rejected the Biden Administration's attempt to increase that threshold (see here).
New York's Paid Prenatal Leave Law
Earlier this year, New York State passed a first-in-the-nation paid prenatal leave for covered employees effective January 1, 2025. The State has just issued administrative guidance to help employers navigate the new requirements.
As outlined here and here, the paid prenatal personal leave ("PPPL") entitlement program requires all employers to provide at least 20 hours of paid prenatal personal leave each year in addition to the existing statutory paid sick leave under the New York State Paid Sick Leave Law. This means that eligible employees will soon be entitled to use up to a total of either 60 hours or 76 hours (depending on employer size) of paid leave for various medical needs.
Eligible employees may use PPPL in hourly increments to receive health care services during their pregnancy or related to a pregnancy, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to pregnancy. The guidance underscores that PPPL can be used only by the pregnant employee and not by a pregnant individual's spouse, partner, or other support person.
The guidance further clarifies that: (i) the 20-hour entitlement is not accrued, but rather frontloaded each year on January 1, or upon the employee's date of hire, whichever is later; (ii) there is no waiting period to use PPPL, meaning eligible new hires can use PPPL for a covered absence immediately without satisfying a minimum amount of time worked before accessing the PPPL; and (iii) PPPL is a separate benefit from other leave policies and laws, and that the 20 hours of PPPL are in addition to any other available leave options.
Sunset of COVID Paid Sick Leave
New York was one of the first states to adopt paid sick leave specific for COVID-19 purposes. (See here and here for our prior alerts on the topic.) The New York State COVID-19 Emergency Leave Law currently provides employees with paid leave when subject to a mandatory or precautionary order of quarantine or isolation due to COVID-19. The amount of paid time off to which employees are entitled under this mandate has changed over time in light of the CDC ending its recommended five-day isolation period following a positive COVID-19 test.
However, as expected, this this leave entitlement will end effective July 31, 2025. However, employees may continue to use other qualifying paid leave, such as New York Paid Sick Leave, for COVID-19-related reasons.
Retail Workplace Safety Law
As outlined here, Governor Hochul in September 2024 signed legislation mandating the establishment of a workplace violence prevention policy, notice and training program, and the installation of panic buttons in the workplace for certain retail employers.
But these components do not all share the same effective date and some coverage details differ as well. For example, while the written policy, notice, and training requirements will all take effect on March 4, 2025, the panic button requirement does not take effect until January 1, 2027. And whereas the policy, notice, and training requirements apply to all employers employing 10 retail employees as defined under the statute, the panic button requirement is applicable only to employers with 500 retail employees nationwide.
As of today, the NYDOL has still not published any further guidance at this time leaving some employers in the dark regarding the scope of coverage, particularly the intended meaning of the terms "sells consumer commodities at retail" and "primarily" in the statutory definition of "retail store." We nonetheless expect the NYDOL to issue guidance prior to the March 4, 2025 effective date for some of these requirements.
Outlook
Employers operating in New York should remain attentive to the changing legal landscape as we begin a new calendar year. New York employers should consider reviewing their policies and procedures for potential necessary changes to ensure compliance.
For additional information and guidance, we invite you to join us at our upcoming Breakfast Briefing, "New York and New Jersey Employment Law: 2024 in Review and What's to Come in 2025," on January 9, 2025. You can view the program details and register here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
