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New York Legal Developments
As of December 2025


Upcoming Developments

Minimum Wage Increases. Effective January 1, 2026, the minimum wage rates in New York will increase as follows:
• Long Island, New York City and Westchester (elsewhere in NY is reflected in parentheses)
o 2025 – $16.50/hour ($15.50/hour)
o 2026 – $17.00/hour ($16.00/hour)

Overtime Exemption Salary Threshold Increases. Effective January 1, 2026, the following salary thresholds for the “executive” and “administrative” exemptions will take effect:
• Long Island, New York City and Westchester
o 2025 – $1,237.50/week ($64,350.00 per year)
o 2026 – $1,275.00/week ($66,300.00 per year)

• Elsewhere in New York
o 2025 – $1,161.65/week ($60,405.80 per year)
o 2026 – $1,199.10/week ($62,353.20 per year)

Paid Family Leave Contribution Rate Increase. Effective January 1, 2026, the contribution rate will be 0.432% of an employee’s gross wages per pay period, for a maximum annual contribution of $411.91. This contribution rate reflects an increase from the 0.388% rate in 2025.

• The maximum weekly benefit amount will be $1,228.53 per week. This amount represents 67% of the NYSAWW for 2026, which the Department set at $1,833.63. The 2026 benefit represents an increase from the 2025 benefit of $1,177.32 per week.

Amendments to the New York City Earned Safe and Sick Time Act (ESSTA) and Temporary Schedule Act (TSCA). Effective February 22, 2026, amendments to the ESSTA and TSCA expand employee rights and increase employers’ safe and sick compliance obligations but scale back employers’ obligations relating to temporary schedule changes.
• The Earned Sick and Safe Time Act has been expanded to (i) formally codify the paid prenatal leave requirements into the local law, (ii) provide for additional unpaid time (32 hours), and (iii) permit more reasons for use of time.
• The Temporary Schedule Change Act has been scaled back to remove most affirmative employer obligations other than to respond to an employee’s query about whether it is a grant or denial of the request or proposing an alternative option.
Trapped at Work Act. On June 12, 2025, New York passed the Trapped at Work Act. If signed by Governor Hochul, the law will prohibit the use of promissory notes requiring workers to repay amounts to employers if they leave their jobs before a specific period.

In Case You Missed It

New York City’s Expanded Minimum Pay Protections for App-Based Delivery Workers.
• On September 10, 2025, the New York City Council voted to override Mayor Adam’s vetoes and enacted the bills with respect to app-based delivery workers. Namely, the new legislation expands the hourly minimum wage for grocery delivery workers to $21.44 and will continue to be adjusted annually for inflation.
Prenatal Leave
• Effective July 2, 2025, NYC’s Earned Safe and Sick Time Act incorporates and enhances state prenatal leave protections.
• A new “Notice of Employee Rights” has been issued, which includes a reference to paid prenatal leave.
Jury Duty Pay
• Effective June 8, 2025, the payment for jury service is $72 per day.
• Employers with more than ten employees must pay at least $72 per day for the first three days of jury service.

This material is provided for informational purposes only. For additional information, please contact SHRM LI Legislative Committee Chair, Melissa Pascualini.

 

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Upcoming Webinar

 

Wednesday, April 16, 2025 | 12 PM CT

 

The Price of Innovation: Understanding the Factors Driving Healthcare Costs

As healthcare and pharmacy costs surge, employers must take a proactive approach to financial risk management. Join us April 16 for part 1 of our 3-part cost management series to examine the impact of high-cost pipeline drugs such as GLP-1s, biosimilars, and gene therapies on benefit costs.

Register Here: https://register.gotowebinar.com/register/4562493213838812760?source=SHRMLI




https://www.hubinternational.com/insights/outlook/2025/employee-benefits/

Take Control of Rising Healthcare Costs

Healthcare costs are expected to rise again in 2025 by about 8%, further compounded by similar increases over the last two years. American employers have felt the pinch through higher health insurance rates.


What’s fueling the uphill climb in costs


Healthcare costs continue to go up for several reasons:

  • Medical and general inflation outstripping rising costs in non-healthcare-related industries
  • Clinical personnel shortages
  • Increasing rates of chronic medical conditions

The greatest drivers of medical costs, however, are the price of new technologies and drug costs, including gene therapies, oncology drugs and the explosive popularity of GLP-1s like Ozempic and Wegovy, which can exceed $1,000 a month.


Higher utilization of high-cost specialty drugs — that often replace existing but effective therapies — has significantly increased drug costs. As a result of these trends, prescription drugs costs rose 13.7% in 2023, compared to an expected increase of 9.8%.


Health plan sponsors — and employees — feel the pinch


Between 2014 and 2024, health insurance premiums for family coverage rose 52%, going from an average of $16,834 to $25,572. Of that total, employers paid an average of $19,276, or 75% of the total cost.


Health insurance costs are some of the largest monthly expenses of small- and mid-sized businesses. When these costs become unsustainable, organizations may need to reduce benefits or turn to high-deductible health plans where employees pay a higher share of premiums. This can have a negative impact on recruiting and retention.



The HUB EDGE


There are ways for organizations to lower the cost of their health benefits with the right tools and advisors. Here are a few to consider:

  • Use data analytics. Once only available to large companies, health claim data is now accessible for small- and medium-sized organizations. An experienced partner can help organizations leverage data to get an entirely new perspective of their workforce’s healthcare costs and provide solutions that address those costs.
  • Harness the power of clinical informatics. Data analytics can show where costs are rising but clinical informatics can tell you why — and what to do about it. HUB Infused Analytics™ offers sophisticated tools to improve a healthcare plan’s sustainability, affordability and efficiency.
  • Leverage contract compliance. Reviewing contracts to spot discrepancies and unmet financial guarantees can be a tedious task, requiring an expert eye and infinite patience. In one instance, HUB reviewed a pharmacy benefits manager (PBM) contract for a new client, and found a poorly designed financial guarantee stipulation. By helping renegotiate the stipulations, the client received a $750,000 payout in the contract’s first year.
  • Seek alternative insurance vehicles. Organizations that embrace alternative plans, such as self-funded plans, group captives and other health insurance structures, may be rewarded with reduced expenses and better employee health outcomes. Talk to your insurance broker to find out what options make the most sense and are available for your organization.

By partnering with the right health insurance advisor and taking a proactive approach, businesses can better navigate the twists and turns of rising healthcare costs. While the rollercoaster ride may never completely slow down, strategic planning can help stabilize expenses and create a more effective, sustainable benefits plan over the long term.



 

Sentinel Benefits & Financial Group - Content Roundup 

 

 

Industry update:

We're delighted to announce that Dayforce is named a Leader in the 2024 Gartner® Magic Quadrant™ or Cloud HCM Suites for 1,000+ Employee Enterprises for the fifth consecutive year. This report is a trusted source for evaluating the best technology providers, for learning industry trends, and the market landscape, so you can build a better-informed business case for HCM transformation.


Dayforce named a Leader in the 2024 Gartner Magic Quadrant for Cloud HCM Suites | Dayforce



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