Legal News

Key Updates for Employers and Workers

by Jaleel Menifee

As we move into 2025, several significant changes to New York employment law have taken effect, impacting minimum wage, overtime exemptions, paid leave, workplace safety, and more. Employers and employees alike must stay informed to ensure compliance and take advantage of new protections. Below, we break down a few of the important updates for New York workplaces in 2025.

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Minimum Wage Increases

On January 1, 2025, New York State raised its hourly minimum wage by fifty cents. The new minimum wage rates are as follows:

• $16.50 per hour for employees in New York City, Long Island, and Westchester
• $15.50 per hour for employees in the rest of New York State

These increases apply across various industries, including hospitality, where tipped workers also saw wage adjustments. Employers must ensure they are paying at least the minimum cash wage, allowing eligible employees to receive tips as a credit towards the wage requirement:

• Tipped service employees in NYC, Long Island, and Westchester: $13.75 hourly cash wage ($2.75 tip credit)
• Tipped food service workers in NYC, Long Island, and Westchester: $11.00 hourly cash wage ($5.50 tip credit)
• Tipped service employees in the rest of NY State: $12.90 hourly cash wage ($2.60 tip credit)
• Tipped food service workers in the rest of NY State: $10.35 hourly cash wage ($5.15 tip credit)

Employers should ensure their payroll systems reflect these updated wage rates to avoid penalties for non-compliance.

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Higher Salary Thresholds for Overtime Exemptions

In addition to wage increases, the minimum salary threshold for overtime exemptions under New York State law also increased on January 1, 2025. The new thresholds for executive and administrative exemptions are:

• $1,237.50 per week ($64,350 annually) for employees in New York City, Long Island, and Westchester
• $1,161.65 per week ($60,405.80 annually) for employees in the rest of New York State

These amounts significantly exceed the federal Fair Labor Standards Act (FLSA) threshold of $684 per week ($35,568 annually), which remains unchanged after a scheduled increase for 2025 was struck down in late 2024. Employers relying on exempt status classifications must ensure that employees meet the new state salary thresholds to remain exempt from overtime pay.

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New York Paid Prenatal Leave (NYSPPL)

A major addition to New York’s labor laws is the Paid Prenatal Leave (NYSPPL) law, which took effect on January 1, 2025. This law mandates that all private employers provide 20 hours of paid leave annually for employees to use for prenatal healthcare services, including:

• Physical examinations
• Medical procedures, monitoring, and testing
• End of pregnancy care
• Fertility treatment
• Discussions with healthcare providers related to pregnancy

Importantly, NYSPPL is a separate benefit from other leave entitlements, including New York State Paid Family Leave (NYPFL) and New York State Sick Leave (NYSSL). This leave can be taken in hourly increments, allowing flexibility for employees to attend prenatal healthcare appointments while still being able to work the remaining hours of the workday if they choose. Employers must update their leave policies and ensure that HR departments and employees understand how this new leave category functions.

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Retail Worker Safety Act

Starting March 3, 2025, the Retail Worker Safety Act requires retail employers with at least 10 employees in New York State to implement workplace violence prevention measures. This law applies to retail stores that sell consumer goods (excluding businesses primarily selling food for on-premises consumption). Covered employers must:

• Develop and implement a workplace violence prevention policy
• Provide training to employees upon hire and annually thereafter

Retailers should act now to create compliance plans and ensure they are ready before the deadline.

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Clean Slate Act: Expanded Protections for Job Applicants

In November 2024, New York implemented the Clean Slate Act, significantly affecting hiring practices and employee rights. This law:

• Prohibits employers from inquiring about or taking adverse action based on sealed convictions
• Requires employers to provide notices to applicants and employees regarding any criminal history information they obtain

Employers should review hiring procedures and ensure background check policies align with the new legal standards to avoid discrimination claims.

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Expiration of New York’s COVID-19 Leave Law

New York’s COVID-19 Isolation and Quarantine Leave law will officially expire on July 31, 2025. Since its implementation, this law provided additional sick leave based on employer size for workers subject to a mandatory COVID-19 quarantine or isolation order. After the expiration date:

• Employees may still access paid leave for COVID-19 absences under New York’s Paid Sick Leave, Paid Family Leave, and NYC Earned Sick and Safe Time laws.
• Employers should prepare for the transition by updating leave policies accordingly.

With these new laws in place, New York employers must take proactive steps to ensure compliance:

1. Adjust payroll to meet updated minimum wage and overtime exemption thresholds.
2. Revise leave policies to incorporate Paid Prenatal Leave provisions.
3. Develop workplace safety programs if operating a retail business with 10 or more employees.
4. Review hiring practices to align with the Clean Slate Act.
5. Prepare for the expiration of COVID-19 Leave by ensuring compliance with existing sick leave laws.

New York’s 2025 employment law updates introduce critical changes that affect wage compliance, workplace protections, leave benefits, and hiring practices. Employers should take immediate steps to ensure compliance, while employees should familiarize themselves with their expanded rights. Staying ahead of these changes will help businesses avoid legal pitfalls and foster a fair and compliant workplace environment.

Navigating the evolving landscape of employment law requires proactive legal guidance. At Outside Legal Counsel LLP, our attorneys specialize in helping businesses adapt to regulatory changes, minimize liabilities, and ensure compliance with New York’s labor laws. Whether your company needs assistance with wage compliance, workplace safety measures, or leave policy updates, we provide tailored strategies to keep you ahead of legal risks. Contact us today to learn how we can support your organization in meeting these new challenges with confidence.

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