NYC Earned Safe and Sick Time Act Amended, Effective February 2026

On February 22, 2026, major updates to New York City’s Earned Safe and Sick Time Act (ESSTA) will officially take effect. The amendment adds a new 32 hours of unpaid leave per year for all employees—on top of the existing 40 or 56 hours of paid sick and safe leave, depending on company size.

The new law also broadens the range of situations when employees can use leave, and increases employer recordkeeping obligations. Together, these changes raise the stakes for compliance and will significantly impact HR policy, payroll systems, and staffing management.

If your business operates in New York City and needs support with sick leave compliance or policy updates, contact the ILS legal team at contact@consultils.com. We’ll help you navigate the new law, avoid surprises, and stay compliant—before February 2026 arrives.

Key Provisions

• New 32 Hours of Unpaid Sick/Safe Leave: Starting February 2026, all NYC employees receive 32 additional hours of unpaid sick or safe time each year.

• Paid Leave Requirements Remain: Employers must still provide 40 or 56 hours of paid leave, depending on headcount.

• Broader Leave Usage: Leave can now be used in more situations, including for caring for minors and other family caregiving needs.

• Stricter Recordkeeping: Employers must now maintain detailed records of leave accrual, usage, and balances for all employees.

Why Is This Happening?

In recent years, New York City has steadily expanded employee rights around health, safety, and family care through local legislation. This latest update to the ESSTA reflects that ongoing policy direction.

With the rise of remote work, evolving family structures, and growing demands for work-life balance, the City found that the original paid sick and safe leave law was no longer sufficient—in terms of total hours, flexibility, and real-world application. The amendment aims to raise the baseline protection for all workers.

At a broader level, New York City’s action aligns with a nationwide trend: both New York State and many other states have been expanding laws related to sick leave, family leave, and medical leave. Governments are shifting focus from “Do employers offer leave?” to “Is the leave sufficient, and is it properly implemented?” By layering city-level standards on top of state laws, compliance thresholds for employers are getting significantly higher.

That’s why this ESSTA amendment is not just about adding hours. It also introduces:

• A new unpaid leave quota

• Expanded qualifying reasons for leave use

• Stricter documentation and recordkeeping requirements

Together, these changes affect more than just payroll—they will impact:

• Scheduling and staffing management

• Payroll calculations and leave tracking

• HR system configurations

• Legal risk exposure during audits or disputes

Impact on Employers

• Payroll Complexity Increases: You’ll need to clearly separate paid and unpaid leave in your payroll system and paystubs.

• Scheduling Pressure Grows: Even unpaid time off can disrupt coverage and increase demand for backups or part-time workers.

• Audit Risk Rises: With stricter documentation rules, missing or incomplete records could lead to fines or labor disputes.

• Employee Expectations Will Shift: As awareness of expanded rights grows, employees may be more likely to push back on leave denials or delays.

What Employers Should Do

Given that the ESSTA amendment will officially take effect in February 2026, employers should start internal compliance preparations early. Doing so will help avoid fines, back pay obligations, or group complaints due to unclear policies or operational mistakes during the transition. Here’s where to focus:

• Review and Revise Your Existing Leave Policies：Conduct a thorough review of your employee handbook, sick leave policy, safe leave policy, family care leave, and any related documents. Clearly separate the existing 40/56 hours of paid sick and safe leave from the new 32 hours of unpaid leave. Define the applicable situations, eligibility requirements, order of usage, and annual carryover rules for each leave type. Make sure all policy language aligns with the new law.

• Upgrade HR and Payroll System Settings: Work with your payroll provider to update system settings and ensure the following

  • The new unpaid leave is not mistakenly processed as paid leave;

  • Different types of leave are clearly shown on employee paystubs;

  • Annual leave accruals, usage, and balances are fully trackable.

  
  

  These steps help prevent payroll errors and reduce the risk of wage disputes caused by system mistakes.

  
  

• Establish a Compliant Recordkeeping and Audit System: Follow the updated recordkeeping requirements by consistently documenting employee leave requests, approval workflows, usage details, and changes in leave balances and annual accruals. Set a standardized retention period and conduct regular internal audits to prepare for labor inspections or employee complaints.

• Provide Targeted Training for Management and HR: Offer focused training to frontline managers and HR personnel on the updated ESSTA requirements. Consider improving communication practices and employee relations strategies. In particular, aim to prevent:

  • Violations due to improper leave denial, delayed approvals, or incorrect wage deductions

  • Compliance risks from misunderstanding newly added qualifying reasons, such as “caring for a minor child”

• Evaluate Staffing and Scheduling Flexibility in Advance: Given the increased total amount of legally protected leave, employers should proactively assess:

  • Backup staffing plans for key roles and busy seasons

  • Whether to bring in temporary workers, part-time staff, or shift rotations

  • Potential impact on business continuity, service delivery, and client commitments

• Update Employee Communication and Notice Materials: Distribute updated leave policy explanations to all employees in a timely manner to avoid confusion, complaints, or group disputes. Provide bilingual versions (e.g., English and Chinese) if needed to ensure full understanding across your workforce.。

• Complete a Full Compliance Test Before 2026: Before the new law takes effect, run a trial process to test whether your leave system is ready—check if leave applications flow smoothly, payroll deductions are accurate, and approvals meet required timelines. Identify and fix policy or system gaps early.

As New York City’s ESSTA amendment is set to take effect in 2026, employers who fail to update policies and internal procedures in advance may face significant compliance risks—especially in payroll, leave management, and labor disputes. Early planning helps reduce operational uncertainty and avoid costly legal exposure. Businesses are strongly encouraged to consult with legal professionals as early as possible to conduct a comprehensive review of their current employment practices and ensure a smooth, fully compliant transition before the new law takes effect.

If your business operates in New York City and needs support with sick leave compliance or policy updates, contact the ILS legal team at contact@consultils.com. We’ll help you navigate the new law, avoid surprises, and stay compliant—before February 2026 arrives.

Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.

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As Managing Partner at ILS, Richard Liu ranks among the leading U.S. attorneys in corporate, employment, and regulatory law. He is known for crafting legal strategies aligned with clients’ business objectives and advising Fortune 500 companies, startups, and executives on corporate transactions, financing, privacy, and employment matters across the technology, healthcare, and financial sectors.

Before founding ILS, Richard practiced at top defense firms, where he developed a reputation for anticipating risks and designing strategies that balance protection with growth. He has secured favorable outcomes in contract and intellectual property disputes, represented clients in state and federal courts, and is recognized for combining large-firm expertise with boutique-firm agility. Richard is also a frequent speaker at industry and legal conferences.

Email: contact@consultils.com | Phone: 626-344-8949