2025 is only weeks away. Businesses operating in New York must prepare for several significant changes to employment laws. These updates affect wages, leave entitlements, and compliance measures. Below are a few points employers need to know to remain compliant with New York law.

• Minimum Wage and Minimum Salary

On January 1, 2025, the minimum wage and the minimum salary for exempt employees will increase for New York employers once again.

The minimum wage in New York City, Westchester, and Long Island will increase to $16.50/hour (up from $16.00/hour), and the minimum wage in the remainder of the state will increase to $15.50/hour (up from $15.00/hour).

Unless employees are exempt from overtime pay requirements, they must also receive overtime pay at a rate of time and a half of their regular rate of pay for all hours worked in a week over forty. For the most common “white-collar” exemptions, to be properly classified as exempt depends upon an employee’s salary and the employee’s job responsibilities.

With respect to the salary component of the exemption test, the minimum salary that an employee classified as exempt under the administrative and executive exemptions must earn will increase in New York City, Westchester, and Long Island to $1,237.50/week ($64,350/year), and in the remainder of New York State to $1,161.65/week ($60,405.80/year).

Employers should review and adjust employees’ hourly rates and salaries to ensure compliance with these new minimums.

• New Paid Prenatal Leave Requirement

Effective January 1, 2025, pregnant New York employees will become eligible for 20 hours of paid leave per year to be used for prenatal healthcare service appointments during or related to their pregnancy. This leave will be separate from and in addition to any existing paid sick or safe leave entitlements and an employer cannot require an employee to choose one leave type over another or require an employee to exhaust one type of leave before using Paid Prenatal Leave. 

This law applies to employers of all sizes, and there is no minimum amount of time an employee must work in order to become eligible for the leave.  

Pregnant employees may use their Prenatal Leave, in one-hour increments, for health care services, including physical examinations, medical procedures, monitoring and testing, and discussions with a health care provider related to the pregnancy.  This leave is also available for fertility treatment or care appointments, including in vitro fertilization, and end of pregnancy care.

Employees do not have to provide any medical records or disclose confidential information about their health care condition in order to request Paid Prenatal leave.

Employers should update their leave policies and train their managers about this new leave requirement.

• Clean Slate Act Compliance

New York’s Clean Slate Act took effect on November 16, 2024. Pursuant to the law, with some exceptions, convictions for most misdemeanor and felony convictions will be sealed after a certain amount of time has passed since the individual’s last conviction or release from incarceration. 

The Act also amends the New York State Human Rights Law to make it an unlawful discriminatory practice, except where required or permitted by statute, for employers to inquire about or to adversely act upon sealed convictions against applicants or employees.

The Act also requires employers receiving criminal history information to provide a copy of that information to the applicant or employee, along with a copy of Article 23-A of the New York Correction Law, and notify the individual “of their right to seek correction of any incorrect information contained in such information pursuant to the regulations and procedures established by the Division of Criminal Justice Services.” This notice obligation applies regardless of whether the employer plans to take adverse action based on the criminal history information. 

• Take Action Now

To prepare for these changes, employers should:

• Audit their payroll and classification practices for compliance with new thresholds.
• Update their employee handbook to include a paid prenatal leave policy and confirm that the handbook includes all other required policies.
• Train HR and management teams on the nuances of these laws.  
• Communicate with employees about upcoming wage and leave adjustments.

New York’s employment laws are often changing and expanding. Staying proactive and informed is key to maintaining legal compliance. If you have questions about these changes or need assistance updating your policies, contact Sara Kula for guidance.