Executive Summary: As of January 1, 2026, New York employers face major updates in LLC reporting, wage laws, penalties for child labor violations, pay frequency rules for manual workers, and expanded sick leave and handbook obligations in NYC. These changes carry real penalties and require policy updates.
On January 1, several major legal changes took effect for New York employers. If you own or manage a business, especially a small or mid-sized one, here’s what now applies to your operations.
1. New York’s LLC Transparency Act
The LLC Transparency Act (modeled after the federal Corporate Transparency Act) requires most limited liability companies formed or registered to do business in New York to disclose their beneficial owners to the state.
Under the law, LLCs must report individuals who own or control 25% or more of the company or who exercise substantial control. The state will maintain a database of beneficial owners, which will be available to law enforcement and certain agencies.
If you formed your LLC before 2026, you have until January 1, 2027, to file. New LLCs must report at formation.
2. Minimum Wage Increase
Starting January 1, New York’s minimum wage increases to:
- $17.00/hour in New York City, Long Island, and Westchester
- $16.00/hour in the rest of the state
Beginning in 2027, the minimum wage will be adjusted annually based on inflation and cost-of-living data published by the Department of Labor.
3. Increased Penalties for Child Labor Violations
New York has raised civil penalties for violations of its child labor laws. Effective January 1:
- The maximum fine per violation increases from $1,000 to $5,000 for a first offense
- Subsequent violations may result in fines up to $15,000
These changes are intended to crack down on employers who allow minors to work prohibited hours or in hazardous jobs.
4. Clarifying the Frequency of Pay for Manual Workers
New York law requires manual workers to be paid weekly. Many small businesses don’t realize this applies to positions like delivery drivers, warehouse staff, and certain retail or hospitality roles. Misclassifying workers and paying them semi-monthly, even when they’re paid in full, can result in large statutory penalties.
Courts have allowed lawsuits to proceed even when no wages were actually withheld. If your business pays workers on a semi-monthly basis, review classifications now to avoid litigation.
5. Expanded Leave and Handbook Requirements in NYC
The New York City Council passed a package of worker protection laws in late 2023 that took effect in 2024 and 2025, with broader compliance obligations that began January 1, 2026. Key changes:
- Expanded uses of Earned Safe and Sick Time (ESSTA): Now includes closures due to weather or public health emergencies, care for chosen family, and more.
- Temporary Schedule Change Act integrated into ESSTA: Applies to requests for time off for personal events.
- New Paid Prenatal Leave: NYC employers must provide up to 20 hours of paid prenatal leave in addition to sick time.
- Handbook Requirements: Employers must now include leave rights and procedures in written policies distributed to employees.
If you have employees in New York City, review and update your handbooks, leave tracking, and employee onboarding materials. Need help updating your handbook or making sure you’re compliant with the new rules? Contact Rodriguez-McCloskey PLLC today.
