New York
New York: Amendments to Trapped at Work Act Delay Implementation and Add Clarification
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APPLIES TO All Employers with Employees in NY |
EFFECTIVE DEC 19, 2026 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Enacted late last year, S4070B prohibited the use of reimbursement clauses or promissory notes as a condition of employment. This includes requirements that the worker pay the employer a sum of money if the worker leaves employment before the passage of a stated period of time. The law would apply to an agreement that requires the worker to reimburse the employer for training provided to the worker.
Due to employer concerns about the scope of the law, the legislature has enacted A9452 which narrows the scope of the law and delays its implementation to December 19, 2026. The amendment narrows the application of the law to only employees rather than the broader definition of “worker.” In addition, new exceptions have been added to narrow the scope of applicability. The original exceptions included:
- 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 collective bargaining.
The amendment now adds the following additional exceptions:
- An agreement that requires the employee to reimburse the employer for the cost of tuition, fees, and required educational materials for a transferable credential provided certain conditions are met through a written agreement; and
- An agreement that requires the employee to repay a financial bonus, relocation assistance, or other non-educational incentive or other payment or benefit that is not tied to specific job performance, unless the employee was terminated for any reason other than misconduct or the duties or requirements of the job were misrepresented to the employee.
Although the law will not go into effect until the end of the year, employers should begin reviewing their reimbursement clauses and promissory notes with their legal counsel to make sure their agreements are in compliance.
Action Items
- Review reimbursement clauses and promissory notes with legal counsel.
New York, NY: Mandatory Notice of Employee Rights and Additional Guidance on Unpaid Sick Leave
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APPLIES TO All Employers with Employees in New York, NY |
EFFECTIVE As Indicated |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Pursuant to amendments to the New York City Earned Safe and Sick Time Act which took effect on February 22, 2026, the New York City Department of Consumer and Worker Protection issued updated guidance and the Notice of Employee Rights. The amendments require employers to distribute the mandatory notice to all employees regularly working in New York City in the employee’s primary language and post the notice in the workplace. In addition, employers must grant employees 32 hours of unpaid sick leave on the first day of employment and on the first day of each calendar year. There are also new covered uses for sick leave.
The updated guidance is in the form of FAQs which answers questions raised by the proposed rules. The proposed rules are set to clarify implementation of the amendments. The most notable questions that the revised guidance addresses are:
- Employers must provide the full 32 hours of unpaid sick leave to part-time employees or mid-year hires;
- Employers can provide 32 hours of additional paid sick leave in lieu of providing unpaid sick leave as long as it is immediately available for the employee’s use;
- Protected time to care for a minor child or care recipient includes school holidays, day care closures, and babysitter cancellations; and
- Unpaid sick leave can be taken in increments initially of a maximum of four hours and a minimum of 30-minute or smaller increments thereafter.
An additional guidance document, Rules for Protected Time Off Policies, addresses how employer PTO policies can meet the requirements under the law. Employers intending to use their PTO policies to comply should review the requirements to make sure all provisions are met.
Action Items
- Review and update sick leave and paid time off policies, as applicable.
- Distribute and post mandatory Notice of Employee Rights.
- Have appropriate personnel trained on the requirements.
New York: Extension of PFML Benefits to Construction Workers is Postponed
New York Governor Kathy Hochul signed S8795, requiring certain unionized construction workers to continue receiving union health plan/fund benefits while on paid family leave, as if they were still actively working. The law also delays the effective date of A4727/S50, which extends paid family leave eligibility for certain construction employees who work for multiple CBA employers. Under the amendments, A4727/S50 is not set to go into effect on January 1, 2027.
REMINDER | New York: Registration for Secure Choice Retirement Savings Program Is Open
Following its establishment in 2018 and after much delay, registration is open to eligible employers for the New York Secure Choice Retirement Savings Program, according to the following phased-in schedule: (1) Employers with 30 or more employees must register by March 18, 2026; (2) Employers with 15 to 29 employees must register by May 15, 2026; and (3) Employers with 10 to 14 employees must register by July 15, 2026. Under the program, an employer is “eligible” if they have 10 or more employees, they do not offer a qualified retirement plan, and they have been in business for at least two years.
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