2026 Labor & Employment Law Updates: What Queens Employers Need to Know
By Douglas E. Rowe, Esq.
Certilman Balin Adler & Hyman, LLP
As we advance through 2026, New York remains at the forefront of labor and employment law reform. After a busy 2025 legislative session and the adoption of the 2026 State Budget, employers operating in Queens and throughout New York State face a broad array of new and evolving obligations. Staying informed and proactive is essential to maintain compliance, avoid penalties, and foster a positive workplace culture.
- Wage and Salary Threshold Increases
One of the most impactful changes this year involves wage and salary thresholds affecting both non-exempt and exempt employees:
- Minimum Wage: Effective January 1, 2026, New York’s minimum wage increased to $17.00 per hour in New York City, Long Island, and Westchester, with the remainder of the State at $16.00 per hour.
- Exempt Salary Thresholds: The minimum weekly salary required for employees to qualify as exempt from overtime under New York State standards also rose for 2026. Employers in NYC, Long Island, and Westchester must meet a $1,275.00 weekly threshold (annualized to about $66,300), while employers in the rest of the State must meet $1,199.10 weekly (around $62,353 annually).
These increases mean that businesses should review compensation structures now to ensure overtime exemption designations remain valid and that pay practices align with the current state standards.
- Expanded Paid Leave and Leave Administration
New York continues to expand employee leave rights — and with that comes heightened compliance complexity:
- Paid Family Leave (PFL): For 2026, the employee contribution rate for PFL increased slightly, with a new maximum annual deduction of $411.91 from employees’ wages.
- New York City Earned Safe and Sick Time Act (ESSTA): Starting February 22, 2026, NYC employers must frontload 32 hours of unpaid sick/safe leave for employees upon hire, in addition to continuing paid accruals tied to employer size and net income. Employers must offer paid leave first unless the employee requests otherwise.
- Temporary Schedule Change Act Integration: The former NYC Temporary Schedule Change Act has been absorbed into ESSTA, meaning employers no longer have separate obligations under TSCA but must respond to schedule change requests under the broader leave framework.
- Prenatal Leave Requirements: NYC has clarified and codified prenatal leave rules, requiring 20 hours of paid prenatal leave for qualifying employees and specific policy and notice requirements.
For employers with staff in Queens, updating leave policies and handbooks, adjusting payroll and scheduling systems, and training HR personnel on new processes should be immediate priorities.
- Prohibitions on “Stay-or-Pay” Agreements
In late 2025, Governor Hochul signed the Trapped at Work Act, which took effect immediately and remains a major compliance development in 2026:
- Employment promissory notes — often referred to as “stay-or-pay” or training repayment agreements — are now expressly prohibited in New York. Employers can no longer require workers to repay training costs or other sums if they leave employment within a specified period.
This change requires employers to immediately review and revise any employment contracts or agreements that include repayment obligations tied to tenure or training investment.
- Limits on Use of Credit History in Hiring
Also new this year: effective April 18, 2026, will be an unlawful discriminatory practice under New York State law for employers, labor organizations, or employment agencies to request or use an individual’s consumer credit history for employment decisions — including hiring or compensation — with limited exceptions.
Employers should eliminate credit checks from pre-employment screening unless a narrow statutory exclusion applies and update their hiring protocols accordingly.
- Wage & Hour Reporting and Payroll Obligations
Additional compliance updates include:
- Electronic Certified Payroll Reporting: Contractors on public and prevailing wage projects must now submit monthly certified payroll reports electronically via the NYSDOL portal beginning in 2026.
This requirement affects construction employers and subcontractors operating in the region and underscores the broader trend toward digitized compliance enforcement.
Looking Ahead: AI Regulation and Predictable Scheduling
While not yet law, New York lawmakers are actively proposing AI oversight legislation to regulate high-risk automated decision-making in employment contexts. Proposals include transparency requirements, audit obligations, and efforts to prevent algorithmic discrimination, with deliberations ongoing throughout 2026.
At the state legislative level, bills aimed at predictable scheduling pay protections (for example, guaranteeing minimum hours for workers reporting to shifts) are also under consideration — meaning future scheduling law changes could be on the horizon.
Conclusion
2026 continues a multi-year trend of substantial reform in New York labor and employment law. From wage increases and expanded leave entitlements to new prohibitions on contract terms and credit checks, employers must navigate a complex and evolving legal landscape.
To stay compliant and competitive, Queens businesses should proactively review policies, adjust systems, and engage legal or HR expertise where necessary. Timely action now will help avoid costly missteps later and support a thriving workplace that meets employees’ expectations under the law.
