Navigating hourly employment in New York presents unique challenges, particularly with minimum wage rules.
State requirements can interact with federal standards, and in some areas, local rules may layer on additional obligations for employers.
Welcome to the Empire State, home of the city so nice, they named her twice (and home to HireArt's HQ!)
New York has one of the most complex wage and hour systems in the country, with regional minimum wages, extensive paid leave laws, and detailed regulations for industries like hospitality. Employers must track annual rate adjustments and comply with stricter standards in areas such as wage statements, recordkeeping, and worker classification.
Whether you employ staff directly or through an Employer of Record (EOR) like HireArt, understanding New York’s labor framework is essential for compliance and for maintaining a fair, well-documented workplace.
This blog is based on information available to HireArt as of October, 2025. HireArt does not provide tax, accounting or legal advice. This material has been prepared for informational purposes only, and should not be relied on for, tax, legal or accounting advice. Consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
New York’s minimum wage rates vary by region and industry.
As of 2025, the following rates apply:
The hospitality industry has its own tipped wage rules, and enforcement is particularly active in New York City.
Employers must follow the higher applicable rate between state and local law.
New York’s statewide paid sick leave law covers nearly all employers.
Employees accrue one hour of sick leave for every 30 hours worked. Annual usage and accrual caps depend on company size:
Accrued time can be used for personal illness, family care, or public health emergencies, and must carry over from year to year.
New York City has additional labor rules that go beyond state standards.
The city’s Earned Safe and Sick Time Act provides expanded protections, and enforcement is overseen by the Department of Consumer and Worker Protection. Employers with operations in both New York City and other parts of the state must ensure compliance with whichever law provides greater benefits to employees.
Employers must comply with the local law that is most generous to the employee.
New York enforces detailed meal break requirements under its Labor Law.
Most employees are entitled to:
Payment of accrued vacation or paid time off (PTO) at termination depends on the employer’s written policy or employment contract.
New York law does not require payout of unused time unless the employer’s policy or agreement states otherwise. Clear documentation of PTO policies helps prevent disputes and supports compliance with wage payment regulations.
New York does not have a general statute requiring reimbursement for business-related expenses.
However, deductions from wages must be authorized in writing and for the employee’s benefit. Employers are encouraged to maintain a written reimbursement policy outlining which expenses are covered and how employees can request repayment.
Employers must provide detailed wage statements and issue final pay promptly upon separation.
Maintaining accurate, timely wage records is critical for compliance with New York’s strict wage payment laws.
New York applies multiple tests for determining worker classification.
For unemployment insurance purposes, the state uses the ABC test, while most other wage and hour issues rely on the federal economic-realities test. If an employer exercises significant control over how work is performed, the worker must generally be classified as an employee (W-2). Misclassification can result in penalties, back wages, and tax liability.
HireArt acts as an Employer of Record (EOR) to help companies manage compliance across New York’s complex and highly regulated labor landscape. Through HireArt, employers can:
By partnering with HireArt, employers can reduce risk, streamline operations, and maintain compliance in one of the most closely monitored employment environments in the country.
