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Employers should prepare themselves for the several changes in employment-related laws and regulations set to become effective in 2026. We summarize some of the key changes below.
Wage and Hour (New York State and New York City)
Overtime Exemption Salary Threshold Increases
Effective January 1, 2026, New York's salary basis test for employees classified as exempt under the administrative and executive exemptions will increase as follows:
|
New York City, Westchester, and Long Island |
$1,275.00/week or $66,300.00/year (increased from $1,237.50/week or $64,350.00/year) |
|
Remainder of New York state |
$1,999.10/week or $62,353.20/year (increased from 1,161.65/week or $60,405.80/year) |
Minimum Wage Increases
Effective January 1, 2026, New York's minimum wage will increase for all employees (excluding home care aides and certain other industry employees) as follows:
|
New York City, Westchester, and Long Island |
$17.00/hour (increased from $16.50/hour) |
|
Remainder of New York state |
$16.00/hour (increased from 15.50/hour) |
Upcoming Changes to the Tip Credit for Tipped Employees
As of January 1, 2026, the allowable "tip credit" for food service workers and service employees and the minimum cash wage is scheduled to increase.
Tipped Food Service Workers
A food service worker is defined as any employee who is primarily engaged in the serving of food or beverages to guests, patrons, or customers in the hospitality industry, including but not limited to wait staff, bartenders, captains, and bussing personnel, and who regularly receives tips from such guests, patrons, or customers. The term food service worker does not include delivery workers.
This chart reflects cash wages and tip credits for food service workers, effective January 1, 2026:
|
New York City, Westchester, and Long Island |
$11.34 cash wage and $5.65 tip credit/hour (increased from $11.00 cash wage and $5.50 tip credit/hour) |
|
Remainder of New York state |
$10.70 cash wage and $5.30 tip credit/hour (increased from $10.35 cash wage and $5.15 tip credit/hour) |
Tipped Service Employees
A service employee is defined as an employee, other than a food service worker or fast-food employee, who customarily receives tips.
This chart reflects cash wage and tip credit for service employees, effective January 1, 2026:
|
New York City, Westchester, and Long Island |
$14.15 cash wage and $2.85 tip credit/hour (increased from $13.75 cash wage and $2.75 tip credit/hour) |
|
Remainder of New York state |
$13.30 cash wage and $2.70 tip credit/hour (increased from $12.90 cash wage and $2.60 tip credit/hour) |
Upcoming Changes to the Meal Credit
The allowable "meal credit" for food service workers, service employees, and non-service employees will increase on January 1, 2026. It is important to note that employees covered by the Minimum Wage Order for Farm Workers will not experience a change in the meal credit.
Food Service Workers
This chart reflects the meal credit for food service workers, effective January 1, 2026:
|
New York City, Westchester, and Long Island |
$4.05/meal (increased from $3.95/meal) |
|
Remainder of New York state |
$4.10/meal (increased from $3.95/meal) |
Service Employees
This chart reflects the meal credit for service employees, effective January 1, 2026:
|
New York City, Westchester, and Long Island |
$4.75/meal (increased from $4.60/meal) |
|
Remainder of New York state |
$4.60/meal (increased from $4.25/meal) |
Non-Service Employees
A non-service employee is defined as any employee other than a service employee or a food service worker.
This chart reflects the meal credit for non-service employees, effective January 1, 2026:
|
New York City, Westchester, and Long Island |
$5.80/meal (increased from $5.65/meal) |
|
Remainder of New York state |
$5.50/meal (increased from $5.35/meal) |
Updates to the Uniform Allowance
The required "uniform allowance" for employers who require employees to wear a uniform but do not launder and maintain the uniform itself will increase on January 1, 2026. A "required uniform" is defined as clothing required to be worn while working at the request of an employer, or to comply with any federal, state, city, or local law, rule, or regulation, except clothing that may be worn as part of an employee's ordinary wardrobe. It is important to note that employees covered by the Minimum Wage Order for Farm Workers and employees of certain nonprofit organizations are not required to pay a uniform maintenance allowance.
This chart reflects the required uniform maintenance allowance, effective January 1, 2026:
|
Workweek of More Than 30 Hours |
Workweek Between 20-30 Hours |
Workweek of 20 Hours or Less |
|
|
New York City, Westchester, and Long Island |
$21.10/week (increased from $20.50/week) |
$16.75/week (increased from $16.25/week) |
$10.10/week (increased from $9.80/week) |
|
Remainder of New York state |
$19.85/week (increased from $19.25/week) |
$15.80/week (increased from $15.30/week) |
$9.55/week (increased from $9.25/week) |
New York City Safe and Sick Time Act
On February 22, 2026, the Law that broadens entitlements under the city's Earned Safe and Sick Time Act ("ESSTA") will go into effect.
As described in our recent advisory, along with providing additional reasons for the use of ESSTA leave, the Law requires employers to provide employees with an additional 32 hours of unpaid sick/safe time upon hire and on the first day of each calendar year. Additionally, the Law consolidates ESSTA coverage with an employee's rights under the NYC Temporary Schedule Change Act ("TSCA"). Since leave for "personal events" is now covered under ESSTA, the TSCA will be eliminated. Finally, the Law includes a statutory entitlement to paid parental leave as an element of ESSTA, which provides 20 hours of leave in addition to the paid sick and safe time to which an employee is already entitled (see our prior advisory on paid parental leave).
New York State Secure Choice Savings Program
The New York State Secure Choice Savings Program (the "Program") is the state's retirement savings program for private-sector employees who do not have access to a retirement plan at work. Beginning in March 2026, employers who 1) have been in business for at least two years; 2) have 10 or more employees; and 3) do not already offer a retirement plan must either register for the Program or certify their exemption.
Employees age 18 and older are automatically enrolled in the Program if their employer participates. There are notably no fees for enrolled employers, but employees can expect a $28 annual fee, charged quarterly.
Employers can register for the Program or certify their exemption via the Program website.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
