Several key employment law changes in New York have already taken effect or will begin in 2025. It’s essential for employers to stay informed to ensure compliance with these new requirements and avoid potential legal challenges.
Paid Prenatal Care Leave
Beginning January 1, 2025, New York employers will be required to offer 20 hours of paid prenatal care leave annually to employees. This leave can be used for any healthcare services related to pregnancy, including doctor visits, tests, and consultations. Employees are entitled to take this leave in hourly increments, and it must be available in full at the time of hire.
This leave is in addition to any other paid leave benefits the employee may be entitled to, and it must be compensated at the employee's regular rate or the applicable minimum wage, whichever is higher. Employers should review and update their policies to recognize this new requirement, especially since the law protects employees from retaliation for taking the leave.
Overtime Exemption Salary Thresholds Increases
The New York State Department of Labor raised the salary thresholds for executive and administrative exemptions to overtime in 2023. The thresholds will gradually increase each year through 2026.
Under Section 142-2.14 of NYS Codes, Rules & Regulations, employees who work in an “[e]xecutive” 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.
Current minimum salary thresholds for exempt executive and administrative employees:
New York City and the rest of “downstate” (Nassau, Suffolk, and Westchester counties):
$1,237.50 per week ($64,350 per year) on January 1, 2025
$1,275 per week ($66,300 per year) on January 1, 2026
The rest of New York State (areas outside of New York City and Nassau, Suffolk, and Westchester counties):
$1,161.65 per week ($60,405.80 per year) on January 1, 2025
$1,199.10 per week ($62,353.20 per year) on January 1, 2026
Employers must assess whether their salaried employees receive at least these updated thresholds, as it impacts whether they are entitled to overtime pay.
Minimum Wage and Tip Credit Increases
Effective January 1, 2025, New York's minimum wage will increase for all employees (excluding home care aides and certain other industry employees).
For New York City and the rest of “downstate” (Nassau, Suffolk, and Westchester counties) minimum wages will be $16.50/hour (increased from $16.00/hour). For the rest of New York State (areas outside of New York City and Nassau, Suffolk, and Westchester counties) the new minimum wage will be $15.50/hour (increased from 15.00/hour).
Also, effective January 1, 2025, are changes to the tip credit for food service workers. In New York City and the rest of “downstate” (Nassau, Suffolk, and Westchester counties), the tip credit for food service workers will be increased from $5.35 to $5.50. For service workers, the tip credit will be increased from $2.65 to $2.75. For the rest of New York State (areas outside of New York City and Nassau, Suffolk, and Westchester counties), the tip credit for food service workers will be increased from $5.00 to $5.15, and the tip credit for service workers will be increased from $2.50 to $2.60.
New York State Clean Slate Act
New York’s Clean Slate Act (“Act”), which went into effect on November 16, 2024, limits the types of criminal convictions that employers can access and dictates how to handle the information they are made aware of when considering employment actions, such as hiring or continued employment. The Act amends New York Criminal Procedure Law Section 160.57 to require the New York State Unified Court System up to three years (November 16, 2027) to set up the required processes to automatically seal eligible conviction records. Once that work is complete, convictions that are eligible will be sealed for certain civil background check purposes. Convictions eligible for sealing include most misdemeanor and felony convictions however, certain convictions, such as sex offenses, sexually violent offenses, and non-drug-related Class A felonies, including murder, are not eligible for sealing under the Act.
Misdemeanor convictions are eligible to be sealed three years after sentencing or three years after release from incarceration, whichever is later. Felony convictions are eligible to be sealed eight years after sentencing or eight years after release from incarceration, whichever is later.
Employers who are required by state or federal law to conduct fingerprint-based criminal background checks are exempt from the mandate and will continue to have access to convictions otherwise sealed by the Act. Examples of exempt employers include those who provide childcare, eldercare, or care to individuals with disabilities. In any case, exempt employers have a legal obligation to safeguard information regarding otherwise sealed convictions and may be liable for negligence under the New York Civil Rights Law if they fail to adequately protect that information.
Employers should be aware of this change as it may impact how they conduct background checks. However, law enforcement, courts, and certain positions requiring fingerprint-based background checks will still have access to the sealed records.
Conclusion
With these updates, New York continues to enhance employee protections and reshape how employers manage workplace policies. To avoid legal issues and ensure a fair and compliant work environment, employers are encouraged to update their policies and procedures in anticipation of these changes. By staying ahead of these new laws, businesses can better support their employees and maintain compliance with state requirements.
If you have any questions about these updates or any Labor or Employment law issues, please contact our Labor & Employment team:
Paul F. Keneally, 585-258-2882, pkeneally@underbergkessler.com
Jennifer A. Shoemaker, 585-258-2825, jshoemaker@underbergkessler.com
Ryan T. Biesenbach, 585-258-2865, rbiesenbach@underbergkessler.com