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Employment Law Updates for 2025 in New York

December 5, 2024

As 2024 comes to a close, New York 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.

1. Minimum Wage Increases. Effective January 1, 2025, the hourly minimum wage for the New York 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 increase from $15.00 to $15.50. Also, effective January 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 works will be increased from $5.35 to $5.50. For service workers, the tip credit will be increased 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 be increased from $5.00 to $5.15 and the tip credit for service workers will be increased from $2.50 to $2.60.
2. Salary Exempt Threshold Changes. Employees may be exempt from overtime requirements depending on their job duties. On January 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.
3. New York Retail Worker Safety Act. On September 5, 2024, Governor 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 Act 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 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 January 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.
4. End of COVID-19 Paid Sick Leave.  COVID-19 Paid Sick Leave expires on July 31, 2025. After July 31, 2025, 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.
5. Paid Prenatal Leave. Effective January 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 of time 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

In light of 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.

If you have any questions or would like additional information regarding handbook updates, or other legal developments, please contact Samuel Dobre, Mallory Campbell, Patrick Caldarelli or any attorney in Bond’s labor and employment practice.

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