As 2024 comes to a close, New York State prepares for the rollout of new employment laws and regulations in the coming year. While not an exhaustive summary, this article highlights key developments and updates in employment law for 2025.

Minimum-wage increases

Effective Jan. 1, 2025, the hourly minimum wage for the New York City metro area, which includes New York City, Westchester, and Long Island, will increase from $16.00 to $16.50. Wages across the rest of New York state (excluding New York City, Westchester, and Long Island) will rise from $15.00 to $15.50. Also, effective Jan. 1, 2025, are changes to the tip credit for food-service workers. In New York City, Westchester, and Long Island, the tip credit for food-service workers will be increased from $5.35 to $5.50. For service workers, the tip credit will go up from $2.65 to $2.75. Other than New York City, Westchester, and Long Island, the tip credit for food-service workers in New York will rise from $5.00 to $5.15 and the tip credit for service workers will be increased from $2.50 to $2.60.

Salary-exempt threshold changes

Employees may be exempt from overtime requirements depending on their job duties. On Jan. 1, 2025, the new weekly minimum salary threshold for exempt status will increase to $1,237.50 from $1,200.00 in New York City, Westchester, and Long Island. For the rest of New York state, the new weekly minimum salary is $1,161.65 per week, up from $1,124.20.

New York Retail Worker Safety Act

On Sept. 5, 2024, Gov. Kathy Hochul signed the New York Retail Worker Safety Act into law. Covered retail employers have until March 4, 2025 to ensure compliance with the law’s new requirements for the adoption of polices and training for workplace-violence prevention. Specifically, the new law requires a workplace-violence prevention policy that: (1) outlines a list of factors or situations in the workplace that might place retail employees at risk of workplace violence, (2) outlines methods that the employer may use to prevent incidents of workplace violence, (3) includes information concerning the federal and state statutory provisions concerning violence against retail workers and remedies available to victims of violence, and (4) states that retaliation against individuals who complain of workplace violence, or who testify or assist in any is unlawful. The New York Retail Worker Safety Act also requires a workplace-violence prevention training program providing, among other things, information on the requirements under the law, active-shooter drills, and training on areas of previous security problems. Finally, effective Jan. 1, 2027, covered retail employers with 500 or more retail employees nationwide must provide access to “panic” buttons throughout the workplace to summon immediate assistance from law enforcement.

End of COVID-19 Paid Sick Leave

COVID-19 Paid Sick Leave expires on July 31, 2025. After that date, employees will need to use existing paid leave, such as New York State’s Paid Sick Leave or New York City’s Earned Safe and Sick Time to manage care or isolate for COVID-19.

Paid Prenatal Leave

Effective Jan. 1, 2025, employers are required to provide employees with 20 hours of prenatal personal leave during any 52-week calendar period. Paid prenatal leave is to be provided in addition to other existing sick leave. The leave may be taken for health-care services such as physical examinations, medical procedures, monitoring and testing, and discussions with health-care providers related to pregnancy. Paid prenatal leave may be taken in and must be paid in one-hour increments. Additionally, the use of the language “their pregnancy” indicates the law covers only pregnant employees and not spouses. The law does not state employees must work for a specified period before being eligible for prenatal leave. Employers are not required to pay an employee for unused paid prenatal leave upon termination, resignation, or other separation from employment.

For more information, you can visit New York State’s website dedicated to paid prenatal leave: https://www.ny.gov/programs/new-york-state-paid-prenatal-leave.

Key takeaways

Considering these recent and upcoming employment law developments, employers should review and update their employee handbooks, bring their job advertisements into compliance and revise their hiring practices as they relate to employee policies and wage practices.          

Samuel G. Dobre, Mallory A. Campbell, and Patrick J. Caldarelli are associate attorneys in the New York City office of the Syracuse–based law firm of Bond, Schoeneck & King PLLC. This article is drawn and edited from the New York Labor and Employment Law Report blog on Bond’s website.