Attention Employers: 2026 is Around the Corner. Are You Ready?

2026 IS AROUND THE CORNER. ARE YOU READY?

As we head into 2026, we want to make sure that you are aware of recent and upcoming legislative changes that could affect your workplace. Below, we provide a comprehensive overview of key legal developments in New York, New Jersey and at the Federal level.

We recommend that employers review and revise their employment policies to ensure compliance. As always, we are here to discuss how these developments may specifically impact your business.

NEW YORK STATE

Minimum Wage Will Increase in 2026

• Effective January 1, 2026, minimum wage rates in New York City, Westchester, and Long Island will increase to $17.00 per hour.
• For the rest of New York State, the minimum wage will increase to $16.00 per hour.
• These adjustments apply to all employers in New York State, regardless of the number of employees.
• Employers with multiple locations should confirm that payroll systems, offer letters, and internal pay scales reflect the correct rate for each region.

Exempt Salary Thresholds Will Increase in 2026

• Effective January 1, 2026, the salary thresholds for many overtime-exempt employees will increase.
• In New York City, Westchester, and Long Island, the threshold will rise to $1,275 per week (approximately $66,300 annually).
• For the rest of New York State, the threshold will increase to $1,199.10 per week (approximately $62,353.20 annually).
• Employers should review exempt classifications and either adjust salaries or reclassify employees who will no longer meet the higher thresholds.

Recent Changes from 2025 Will Affect 2026 Handbooks and Policies

• Employers should make sure that their 2026 handbooks and procedures reflect the following recent changes from 2025:
• New York’s 20 hours of paid prenatal leave;
• Expanded 30-minute paid lactation breaks; and
• The Clean Slate Act, which seals certain criminal convictions after specific time periods.

NEW YORK CITY

NYC’s Safe and Sick Leave Law Will Expand Significantly in 2026

• Effective February 22, 2026, amendments to New York City’s Earned Safe and Sick Time Act (“ESSTA”) will substantially expand safe and sick leave rights. This is the largest NYC employment law update for 2026. Employers should plan for a comprehensive overhaul of their NYC leave policies, update notices, and manager training.
• Changes include:
  • Broader definitions of covered “safe” and “sick” time;
  • Additional protected reasons for leave;
  • Coordination changes with the Temporary Schedule Change Law; and
  • New unpaid leave entitlements

Stein Adler will provide explicit guidance in January detailing the changes to the ESSTA and its impact on employers.

NYC May Further Tighten Pay Transparency Requirements

• Pending City Council legislation could expand the pay transparency law in 2026.
• Potential requirements include documenting reasons for pay outside posted ranges, annual compensation disclosures to employees, and including bonuses/benefits in job postings.
• Employers should be prepared for enhanced pay-equity review and documentation obligations.

NYC’s AI Hiring Law Continues to Require Annual Bias Audits

• New York City’s Automated Employment Decision Tool (“AEDT”) law continues to require annual independent bias audits for covered AI-driven hiring and promotion tools, along with specific notices to candidates and employees.
• Employers should confirm that vendors can support compliant audits, ensure audit summaries are appropriately published, and update notices and internal procedures as needed.

NEW JERSEY

New Jersey’s Pay Transparency Law Will Be Fully in Play in 2026

• New Jersey’s pay transparency law (which became effective June 1, 2025) requires employers with 10+ employees to include salary ranges and a general description of benefits and compensation in job listings.
• Enforcement activity is expected to increase in 2026.
• Employers should ensure postings for new roles, promotions, and transfers meet disclosure requirements and that compensation structures are current and defensible.
• Non-compliance carries monetary penalties.

NJ LAD Will Protect Remote Workers

• New Jersey has clarified that its Law Against Discrimination (“NJLAD”) extends to remote employees outside the state who work for New Jersey-based employers.
• 2026 will be the first full year these protections are broadly enforced. Employers should review anti-harassment training, complaint procedures, and manager guidance for multi-state teams.

Temporary Workers’ Bill of Rights and Domestic Workers’ Bill of Rights Will be Enforced

• New Jersey’s Temporary Workers’ Bill of Rights and Domestic Workers’ Bill of Rights are expected to see more robust enforcement in 2026.
• Employers using staffing agencies or domestic workers (including household employers) should confirm contracts, wages, and working conditions are compliant.

If you have questions about the impact of these new or updated legislative changes, or any other employment related questions or concerns, please contact Jonathan Adler, Casey Hail, or Melanie Sarver.