Employers must prepare for changes to the New York State labor and employment laws affecting both public and private sector employers in 2025.
Minimum Wage Rate and Credit Increases
For those employers subject to the New York State minimum wage laws, effective January 1, 2025, the New York State minimum wage rate will increase to $16.50 per hour for New York City, Westchester and Long Island, and to $15.50 per hour for the remainder of the State.
The minimum wage rate for Home Care Aides in New York City, Westchester and Long Island will increase to $19.10 per hour, and to $18.10 per hour for the remainder of the State.
For service workers in New York City, Westchester and Long Island, the cash wage rate will increase to $13.75, the tip credit rate will increase to $2.75, and the tip threshold rate will increase to $3.55.
For service workers in the remainder of the State, the cash wage rate will increase to $12.90, the tip credit rate will increase to $2.60, and the tip threshold rate will increase to $3.30.
For food service workers in New York City, Westchester and Long Island, the cash wage rate will increase to $11.00, and the tip credit rate will increase to $5.50.
For the remainder of the State, the wage rate will increase to $10.35, and the tip credit will increase to $5.15.
For employees in New York City, Long Island and Westchester, meal credits will increase to: (1) $3.95 for food service employees; (2) $4.60 for service employees; and (3) $5.65 for other non-service employees. For the remainder of the State, credits will increase to: (1) $3.95 for food service employees; (2) $4.25 for service employees; and (3) $5.35 for other non-service employees.
Overtime Salary Threshold Increases
Effective January 1, 2025, for those employees subject to State overtime wage laws, the salary threshold for employees classified as bona fide executive, administrative and professional employees, and who are exempt from overtime, will increase to $1,237.50 (totaling $64,350 per year) in New York City, Westchester and Long Island and $1,161.65 (totaling $60,405.80 per year) for the remainder of the State. Note that, for an employee to be exempt from overtime rules, they will also need to continue to satisfy a job duties test.
New York State Paid Family Leave Rate Increases
In 2025, there will also be increases to the benefits and employee payroll contribution rates applicable to private sector employers and those public sector employers that have elected to provide New York State Paid Family Leave benefits to their employees.
Employees taking Paid Family Leave are entitled to receive 67% of their average weekly wage, up to a cap of 67% of the New York State Average Weekly Wage (“NYSAWW”). Effective January 1, 2025, the NYSAWW increases to $1,757.19, and the maximum weekly benefit for employees increases to $1,177.32. In addition, employee contributions toward their Paid Family Leave benefits will increase to 0.388% of their gross wages per pay period, with a maximum annual employee contribution of $354.53.
Establishment of Paid Prenatal Leave
Effective January 1, 2025, private sector employers are required to provide eligible employees with up to 20 hours of paid prenatal personal during a 52-week period. Employees are entitled to paid prenatal leave when they are receiving healthcare services during or relating to their pregnancy. This leave is in addition to any paid sick leave entitlements pursuant to the New York State Paid Sick Leave Law. Employees who take prenatal leave may use this leave in hourly increments and are entitled to be paid at their regular rate of pay or the applicable minimum wage, whichever is higher.
Expansions to the Equal Rights Amendment
As a result of the State’s adoption of the Equal Rights Amendment (“ERA”), effective January 1, 2025, Article I, Section 11 of the New York State Constitution, expands the protected categories against discrimination to race, color, ethnicity, national origin, age, disability, creed, religion, or sex, including sexual orientation, gender identity, gender expression, pregnancy, pregnancy outcomes and reproductive healthcare autonomy.
The New York Retail Worker Safety Act
The New York State Worker Safety Act takes effect on March 4, 2025 and only applies to private sector employers. The Act requires the N.Y.S. Department of Labor to create and publish a model retail workplace violence prevention policy for a covered retail employer to adopt. That model policy is not yet available.
Workers’ Compensation Act Amendments
Effective January 1, 2025, the New York Workers’ Compensation Law is amended to permit any worker to file a workers’ compensation claim for mental injury based upon extraordinary work-related stress that the employee incurs at work.
The Clean Slate Act
The Clean Slate Act took effect on November 16, 2024, amending the New York State Criminal Procedure Law. The Act requires the sealing of all eligible conviction records (both misdemeanors and felonies) including photographs, fingerprints, palmprints, and court orders and judgments. Public and private sector employers may not request or receive sealed conviction records in connection with employment, except: (1) if authorized by local, state or federal law or regulation to receive a fingerprint-based background check to determine an employee’s ability to have responsibility over the safety of children or adolescents, the elderly, individuals with disabilities, or other vulnerable groups; (2) for transportation network companies that are required by state law to request this information in connection with employment as a transportation network company driver; and (3) for prospective employers of police or peace officers.
It is now an unlawful discriminatory practice in violation of the New York State Human Rights Law (“NYSHRL”) for an employer to inquire about sealed conviction records unless the employer is responsible for evaluating an employee’s fitness to be responsible for the safety of children, adolescents, the elderly, individuals with disabilities or any other vulnerable groups. The NYSHRL also prohibits an employer from taking an adverse employment action against an employee with a sealed conviction record.
The Expiration of New York State Paid Emergency Leave
The law requiring New York State Paid Emergency Leave for COVID-19 expires effective July 31, 2025. Thereafter, employees will need to use their existing paid leave including, but not limited to, New York State’s Paid Sick Leave (for private sector employees), for COVID-19-related absences.
If you have any questions about these new laws and amendments, please contact any of our Labor Relations & Employment Law attorneys.
