New York
New York: New Laws for 2026!
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Discussion
Several laws were signed by Governor Hochul at the end of last year impacting requirements for employers in 2026. In addition, clarifying guidance was issued for laws that went into effect at the beginning of the new year. The most significant updates are summarized below.
Paid Family Leave for Construction Workers
Effective December 19, 2025, S50 extends paid family leave benefits to employees who perform construction, demolition, reconstruction, excavation, rehabilitation, repairs, renovations, alterations, or improvements for multiple employers pursuant to a collective bargaining agreement. Currently, employees must work for 26 consecutive weeks to be eligible for benefits paid family leave benefits and they must re-qualify if they return to work with a different employer after an agreed and specified unpaid leave of absence. They must also requalify if they are temporarily laid off.
S50 amends the law to allow construction workers to remain eligible when: (1) they return to work with the same or different covered employer after an agreed and specified unpaid leave of absence; or (2) they return to work with the same or different covered employer after a lay-off, provided they had worked at least 26 of the last 39 weeks. The purpose of the law is to address the fact that the construction industry frequently requires union workers to work for multiple employers for short periods of time or to be laid off briefly between jobs, thereby making them ineligible for paid family leave benefits.
Disparate Impact Liability Recognized
Effective December 19, 2025, S8338 recognizes disparate impact liability as a method of establishing unlawful discrimination under the state’s Human Rights Law. Plaintiffs can now bring a case arguing that a challenged practice had or predictably would have a disparate impact on a protected class under the Human Rights Law even if the practice was not motivated by discriminatory intent. A defense exists where the challenged practice: (1) job related for the position in question and consistent with business necessity; and (2) the business necessity could not be served by another practice that has a less discriminatory effect.
Trapped at Work Act
Effective December 19, 2025, S4070B prohibits employers from using reimbursement clauses or promissory notes as a condition of employment. This includes repayment agreements for an employee who leaves their employment before a certain date, as well as reimbursement agreements for employer-provided training. There are several specific agreements which are exempt from this prohibition:
- An agreement that requires the repayment of an advance;
- An agreement that requires the worker to pay for any property that was sold or leased to them by the employer;
- An agreement that requires educational personnel to comply with the terms and conditions of sabbatical leaves; or
- An agreement subject to a collective bargaining.
Violations of this law can result in a fine of between $1,000 and $5,000 for each violation.
Employers should note there is a pending amendment (A9452) which would further narrow the types agreements affected and provide additional clarity if it is enacted.
Guidance on Healthy Terminals Act Amendment
Amendments to the Healthy Terminals Act (Act) went into effect on January 1, 2026. Due to some confusion created by the amendments, the New York State Department of Labor issued implementation guidance and FAQs to address the most common questions.
- Covered Employees and Airport Locations. The law applies to anyone who works at least 50% of their time during any work week at a covered airport location. A covered airport location includes LaGuardia and JFK International airports and locations from where food to be consumed on airplanes departing from the above airports is prepared or delivered. Employees of the Port Authority of New York and New Jersey and employees of any other governmental agency are not covered by the Act. In addition, workers employed in an executive, administrative, or professional capacity as defined by the federal Fair Labor Standards Act are not covered by the Act.
- Applicable Minimum Wage Rate, Benefit Rate, and Paid Leave. The applicable rates are: (1) the minimum wage rate established by the Port Authority of New York and New Jersey; (2) the health and welfare supplemental wage as designated by the NYS Commissioner of Labor; and (3) paid leave as designated by the NYS Commissioner of Labor.
- Posting Requirement. Employers must post the required posters as provided by NYSDOL in a conspicuous place at worksites where workers will see it.
Employers should note the guidance and FAQs are not formal rulemaking and are suggested recommendations for compliance.
Ban on Credit History Checks in Employment
Effective April 18, 2026, S3072 prohibits the use of consumer credit history checks in hiring, employment, and licensing determinations. Consumer credit history is defined as an individual’s credit worthiness, credit standing, credit capacity or payment history as indicated by a consumer credit report, credit score, or information obtained about an individual’s credit accounts, late or missed payments, charged-off debts, collections history, credit limit inquiries, bankruptcies, judgments, or liens. There are limited exceptions for employers who are required to perform such checks if required by state or federal, for positions subject to a security clearance, positions that are non-clerical where the individual has regular access to trade secrets or intelligence information (including national security information), those have a fiduciary responsibility or signatory authority over funds or agreements valued at $10,000 or more, or those whose duties allow them to modify digital security systems intended to prevent unauthorized use of the employer’s or client’s networks or databases.
Action Items
- Update paid family leave policy, if applicable.
- Discuss claims regarding disparate impact liability with legal counsel.
- Review employment agreements containing reimbursement clauses or promissory notes with legal counsel.
- Review and update wages, benefits, holidays, and vacation requirements for airport workers, if applicable.
- Review and update employment applications and background check procedures to comply with new prohibitions.
- Have appropriate personnel trained on the updated requirements.
New York, NY: Minimum Wage Standards for Security Guards
New York City has enacted the Aland Etienne Safety and Security Act, establishing citywide minimum wage, paid time off, and fringe-benefit standards for private sector security guards. The law applies to any private employer with at least one registered security guard working in NYC, with certain exclusions for federal, state, and Port Authority employers. Beginning January 1, 2027, covered employers must pay hourly wages that match or exceed those required on certain NYC public building service contracts. On January 1, 2028, covered employers must also provide paid holidays, vacations, and sick leave, and on January 1, 2029, they must offer supplemental benefits like health insurance or retirement contributions that are equivalent to those required on the same public contracts.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase