New York Employment Law Changes Every Long Island Employer Must Know

Long Island employers operating in Nassau and Suffolk Counties face a wave of NY employment law 2026 changes that directly impact hiring practices, compensation structures, and leave policies. The state has enacted at least five major employment law updates since December 2025, each carrying distinct compliance deadlines and penalty risks for businesses with 10-50 employees.

NY Employment Law 2026: What Changed and When

Governor Kathy Hochul signed multiple employment bills into law in late 2025, creating a staggered compliance timeline that continues through mid-2026. Here's what's already in effect and what's coming:

Already Effective (December 19, 2025):

• The Trapped at Work Act voids "stay-or-pay" agreements requiring employees to repay training costs or other sums if they leave before a specified date
• Human Rights Law amendments now explicitly allow disparate impact discrimination claims in state court

Effective January 1, 2026:

• Minimum wage increased to $17 per hour statewide
• Overtime exemption thresholds rose to $1,275 per week ($66,300 annually) for NYC, Long Island, and Westchester employers
• Paid Family Leave maximum benefit increased to $1,228.53 per week

Coming April 18, 2026:

• Statewide ban on using consumer credit history in employment decisions takes effect, mirroring NYC's existing prohibition

According to the New York Department of Labor, these wage increases apply uniformly across industries, with no small business exemptions for employers with 10 or more employees.

The Bottom Line Impact on Your Business

These changes create immediate cost and liability exposure for Long Island employers:

Payroll Costs: The minimum wage increase to $17/hour and overtime threshold of $1,275/week means businesses must audit their current compensation structures. An employee previously classified as exempt at $60,000 annually now requires reclassification or a raise to meet the $66,300 threshold.

Hiring Process Overhaul: By April 18, 2026, any background check process that includes credit history review must be eliminated or restricted to narrow exceptions. This affects professional service firms—accounting practices, law firms, and financial services—that traditionally screened candidates' financial backgrounds.

Training Agreement Liability: If your onboarding includes any agreement requiring employees to repay training costs upon early departure, that agreement is now void and unenforceable. Attempting to collect on such agreements exposes your business to legal claims. While amendments proposing exceptions for relocation bonuses and tuition reimbursement are pending, the current ban is broad and immediate.

Managing these overlapping requirements while running your core business creates the kind of administrative burden that leads to costly oversights. Many Long Island employers find that working with specialists who track these changes—like understanding how benefits confusion costs you—prevents compliance gaps before they become penalties.

Practical Steps for Long Island Employers

Take these actions before the remaining deadlines hit:

• Audit compensation immediately: Verify all exempt employees meet the new $66,300 salary threshold for Long Island businesses
• Review onboarding documents: Remove or revise any training repayment agreements, non-compete clauses tied to repayment, or "stay-or-pay" provisions
• Update background check procedures: Work with your screening vendor to eliminate credit history inquiries by April 18, 2026
• Document Paid Family Leave changes: Update employee handbooks to reflect the new $1,228.53 weekly maximum benefit

Your compliance infrastructure should include calendar reminders for these dates and a process for updating policies as regulations evolve.

Frequently Asked Questions

Can I still require employees to repay tuition reimbursement if they leave early?

Currently, the Trapped at Work Act voids most repayment agreements without distinguishing tuition programs. Amendments proposing exceptions for transferable tuition benefits are pending but not yet law. Until those pass, assume such agreements are unenforceable.

Does the credit history ban apply to all positions at my company?

The statewide ban effective April 18, 2026 includes narrow exceptions similar to NYC's existing law, primarily for positions with fiduciary responsibilities or access to significant financial assets. Most small business roles will not qualify for exceptions.

How Benton Oakfield Keeps Long Island Employers Compliant

Benton Oakfield monitors NY employment law changes and translates them into specific policy updates for Nassau and Suffolk County businesses. When the credit history ban takes effect in April, Benton Oakfield reviews your hiring procedures to ensure compliance. When wage thresholds change, Benton Oakfield audits your employee classifications to prevent misclassification penalties. This ongoing compliance support means you focus on running your practice or firm while regulatory tracking happens in the background.

Contact your Benton Oakfield representative to schedule a compliance review before the April deadline.

Compliance Note: Benefit plan rules and tax implications vary based on company size and location. This summary is for informational purposes only. Please contact your Benton Oakfield representative to review how these changes impact your specific plan documents.