New York City Updates Sick Leave Rules: What Employers Need to Know

On February 19, 2026, the New York City Department of Consumer and Worker Protection (DCWP) issued a set of guidance on the city's Earned Safe and Sick Time Act by an updated Notice of Employee Rights, following amendments that took effect on February 22, 2026. The updates introduce new unpaid sick leave requirements and expand covered uses for sick leave.

If your business operates in New York City, it is important to review your leave policies and compliance practices in light of the latest guidance. We can help assess your policies, update required notices, and prepare for the DCWP’s heightened enforcement approach. For guidance, contact ILS legal team at contact@consultils.com.

Key Clarifications

The guidance answers several important questions for employers:

1. Full 32-hour unpaid leave entitlement: All employees must receive the full 32 hours of unpaid sick leave immediately upon hire, without proration, effective Feb. 22, 2026, and replenishes at the beginning of each calendar year. This includes part-time or mid-year hires.

2. Paid leave as a substitute: Employers who provide more than minimum paid time off may not need to provide the additional unpaid leave, provided at least 32 hours of paid time off is available immediately from an employee's first day of employment and replenishes at the start of each calendar year.

3. Expanded covered uses: Employees may use protected time off to care for a minor child, during school holidays, daycare closures, and babysitter cancellations.

Notice and Posting Requirements

Employers must provide employees with an updated Notice of Employee Rights — now available in English and 27 other languages. Employers are required to provide the notice in each employee’s primary language and post it in any language spoken by at least 5% of the workplace.

Employees who previously received an older version of the notice must be given the updated one. Updated policies must be distributed to employees within 14 days of changes (by March 8, 2026).

Aggressive New Enforcement Strategy

Perhaps most significantly, on February 20, 2026, the DCWP issued compliance warnings to approximately 56,000 New York City employers and announced a new enforcement strategy simply driven by data. The DCWP will compare each employer’s sick leave usage rates against national data from the CDC’s National Health Interview Survey. Unusually low usage rates will be treated as “strong evidence of potential violations” and trigger enforcement action — even in the absence of employee complaints. 

Employers who use combined paid leave banks such as PTO should pay particular attention, as accurately tracking sick versus non-sick time usage will be critical to withstanding scrutiny.

Recommended Employer Actions

Given the expanded sick leave requirements and the DCWP’s increasingly aggressive enforcement strategy, New York City employers should take proactive steps to review and update their compliance practices. Employers should consider the following actions:

1. Review existing leave policies immediately

Employers should confirm that their policies reflect the new requirement that employees receive the full 32 hours of unpaid sick leave immediately upon hire, without proration. This rule applies even to part-time employees and those hired mid-year.

2. Evaluate whether current PTO policies satisfy the law

Employers using combined leave banks (such as PTO policies) should confirm that at least 32 hours of paid leave are available for use on an employee’s first day of employment and replenish at the start of each calendar year. If not structured correctly, employers may still be required to provide additional unpaid sick leave.

3. Update employee notices and workplace postings

Employers must distribute the updated Notice of Employee Rights to employees and ensure it is available in the employee’s primary language. Employers should also confirm that workplace postings meet the requirement that notices be displayed in any language spoken by at least 5% of the workforce.

4. Strengthen internal leave tracking systems

Because the DCWP will now compare employer sick leave usage data against national benchmarks, employers should ensure their systems accurately track sick leave usage. Businesses using combined PTO policies should be able to distinguish between sick leave and other leave categories if requested during an investigation.

5. Train HR and management teams

HR personnel and managers should be informed about the expanded permissible uses of sick leave, including leave used to care for a minor child during school holidays, daycare closures, or childcare disruptions.

6. Conduct a compliance audit if necessary

Employers uncertain about their current policies or practices should consider conducting a legal compliance review to ensure their policies, notice procedures, and tracking systems align with the latest DCWP guidance.

If your business operates in New York City, it is important to review your leave policies and compliance practices in light of the latest guidance. We can help assess your policies, update required notices, and prepare for the DCWP’s heightened enforcement approach. For guidance, contact ILS legal team at contact@consultils.com.

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

Yuki is a litigation senior counsel licensed to practice in both New York and California, with extensive experience in dynamic investigations and complex defense matters. Her practice focuses on personal injury, insurance defense, and construction defect litigation, where she is known for developing efficient, multidimensional strategies.

Before joining ILS, Yuki practiced in both New York and Los Angeles, gaining comprehensive experience representing both plaintiffs and defendants. Since 2020, she has concentrated on insurance defense and construction disputes, recognized for her thorough investigations and precise legal analysis. Since joining ILS in 2023, she has continued to provide clients with strategic, experience-driven litigation support.

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