Why New York HR Compliance Is Uniquely Complex
New York employers face a double layer of compliance: state laws that apply everywhere in New York, plus NYC-specific ordinances for businesses operating in the five boroughs. Navigate both or risk audits, fines, and lawsuits.
Key challenges include:
- NY WARN Act: 90-day advance notice for mass layoffs (stricter than federal)
- Paid Family Leave (PFL): 12 weeks partially paid, complex premium calculations
- Salary History Ban: Can't ask about previous pay (statewide since 2020)
- NYC Earned Safe and Sick Time: Up to 56 hours/year for NYC employees
- NYC Fair Workweek Law: Schedule predictability for retail/fast food
- Wage Notice Requirements: Annual written notices + wage theft prevention
- Spread-of-Hours Pay: Extra hour of minimum wage for 10+ hour spreads
- Frequency of Pay: Manual workers paid weekly, others at least semi-monthly
Generic HR software struggles with New York's complexity. You need tools that understand both state and NYC requirements—and apply the right rules to the right employees.
💰 The Real Cost of New York Non-Compliance
- NY WARN violations: Back pay for violation period + $500/day penalties + attorney fees
- Paid Family Leave failures: Fines up to $500 per violation + employee lawsuits
- Salary history ban violations: Complainant can sue for compensatory damages + attorney fees
- NYC sick leave violations: $500 first offense, $750 second, $1,000+ third + make-whole relief
- NYC Fair Workweek violations: $500-$1,000 per violation + back pay for schedule changes
- Wage notice failures: $50/day per employee (capped at $5,000 per employee)
- Spread-of-hours violations: Back wages + liquidated damages + attorney fees
🏙️ NYC-Specific Rules: The Extra Compliance Layer
If you have employees working in New York City (Manhattan, Brooklyn, Queens, Bronx, Staten Island), additional rules apply. Your HR software must differentiate between NYC and upstate employees and apply the correct policies.
- NYC Earned Safe and Sick Time (separate from state sick leave)
- Fair Workweek Law (retail/fast food scheduling rules)
- NYC Salary Transparency Law (pay range in job postings, 4+ employees)
- Ban the Box (delay criminal history questions until after interview)
- Freelance Isn't Free Act (contractor payment protections)
New York's Critical HR Requirements
1. NY WARN Act (Worker Adjustment and Retraining Notification)
New York's WARN Act is stricter than federal WARN. It requires 90 days' notice (vs. 60 federal) and covers more businesses. Violations trigger back pay for the notice period plus penalties.
When NY WARN Applies:
- Mass layoff: 25+ employees (33%+ of workforce) at single site
- Plant closing: 25+ employees within 30 days
- Relocation: Moving 50+ miles away
- Notice required: 90 days to employees, state, and local officials
- Employers covered: 50+ employees in NY (lower threshold than federal)
Software feature needed: Headcount tracking, reduction-in-force planning tools, WARN notice templates, automated filing
2. New York Paid Family Leave (PFL)
NY PFL is one of the most generous in the nation: 12 weeks at 67% of pay (capped at 67% of state average weekly wage). Employees fund it through payroll deductions, but employers administer it.
PFL Basics (2026):
- Duration: Up to 12 weeks per year
- Pay: 67% of average weekly wage (capped at $1,151.16/week for 2026)
- Eligibility: Regular schedule of 20+ hours/week after 26 weeks employed (175 days for <20 hours/week)
- Reasons: Bonding with new child, caring for family member with serious health condition, military family needs
- Funding: Employee-paid through payroll deductions (~0.455% of gross wages, capped)
Software feature needed: PFL deduction calculations, leave request workflows, integration with disability carriers, concurrent leave tracking (FMLA + PFL)
3. Salary History Ban
New York prohibits employers from asking about a candidate's salary history at any point in the hiring process. You can discuss salary expectations, but not what they currently earn or earned previously.
What You Can't Do:
- Ask about current or previous salary or benefits
- Search publicly available records for salary information
- Require applicants to disclose salary history to be considered
What You Can Do:
- Share the salary range for the position
- Ask about salary expectations
- Discuss compensation if the candidate voluntarily discloses
- Verify salary if candidate voluntarily provides written authorization
Software feature needed: ATS that blocks salary history fields, interview question templates, compliance training for hiring managers
4. NYC Earned Safe and Sick Time
NYC requires employers to provide up to 56 hours of paid sick leave per year (for 100+ employees). Smaller employers provide unpaid leave. This is separate from NY state sick leave.
NYC Sick Leave Requirements (2026):
- 100+ employees: 56 hours paid sick leave/year
- 5-99 employees: 40 hours paid sick leave/year
- <5 employees ($1M+ revenue): 40 hours paid sick leave/year
- <5 employees (<$1M revenue): 40 hours unpaid sick leave/year
- Accrual: 1 hour per 30 hours worked (calendar or accrual year)
- Carryover: Up to 56 hours to next year (but use capped annually)
Software feature needed: Separate NYC sick leave tracking, accrual based on location, notice requirements, carryover management
5. NYC Fair Workweek Law
NYC's Fair Workweek Law applies to fast food and retail employers. It requires advance schedule posting, premium pay for schedule changes, and right-to-rest between shifts.
Fast Food Requirements (20+ locations nationally):
- Schedule posting: 14 days in advance
- Schedule changes: $10-$75 premium for changes made <14 days
- Clopening: $100 premium if <11 hours between shifts (unless employee consents)
- Right to decline: Employees can refuse hours not on posted schedule
Retail Requirements (20+ employees, NYC retail employers):
- Schedule posting: 72 hours in advance (good faith estimate at hire)
- Schedule changes: $10-$75 premium for changes made <72 hours
- Clopening: $100 premium if <11 hours between shifts (unless employee consents)
- On-call shifts: Banned (can't require availability without guaranteed hours)
Software feature needed: Schedule publishing workflows, change tracking with premium pay calculation, clopening detection, good faith estimate templates
6. Wage Notice Requirements
New York requires written wage notices at hire and annually. The notices must include pay rate, pay schedule, overtime rate, and employer information. Failure to provide triggers fines.
Wage Notice Must Include:
- Rate or rates of pay (including overtime rate for non-exempt)
- How employee is paid (hourly, salary, commission, etc.)
- Regular payday
- Official name and DBA of employer
- Address and phone number
- Allowances taken as credits toward minimum wage
When required: At hire, by February 1 each year if anything changed, and within 7 days of any pay rate change.
Software feature needed: Automated wage notice generation, annual distribution tracking, acknowledgment storage, multi-language support
7. Spread-of-Hours Pay
If an employee's workday spans more than 10 hours (from first to last hour worked, including breaks), you must pay an additional hour at minimum wage. This applies even if they don't work 10 hours.
Example:
Employee works 7am-12pm, takes unpaid lunch, returns 1pm-6pm. That's 10 hours worked. But the spread is 11 hours (7am-6pm). You owe 1 hour spread-of-hours pay at minimum wage ($15/hour in NYC as of 2024).
Software feature needed: Time tracking that calculates spread (first punch to last punch), automatic spread-of-hours pay addition
New York HR Compliance Checklist
Use this to audit your New York compliance. NYC employers must check both state and NYC sections.
✅ Hiring & Onboarding
✅ Leave Management
✅ Wages & Timekeeping
✅ NYC-Specific (Only if you have NYC employees)
✅ Reductions & Layoffs
Essential Software Features for New York Employers
Your HR software must handle both state and NYC compliance:
🗺️ Location-Based Policy Application
The most critical feature for NY employers:
- Automatically detect employee work location (NYC vs. upstate NY)
- Apply correct sick leave policy (NYC vs. state)
- Enable/disable Fair Workweek features for NYC retail/fast food only
- Track multiple locations if you have offices in both NYC and other NY cities
👶 Paid Family Leave Administration
Must handle:
- Automatic PFL premium deductions (0.455% of gross, capped)
- PFL request workflows (employees submit through carrier)
- Integration with disability carriers (most common: NY State Insurance Fund)
- Concurrent leave tracking (FMLA runs simultaneously with PFL)
- Eligibility calculations (26 weeks for full-time, 175 days for part-time)
📅 Fair Workweek Schedule Management (NYC)
For NYC retail and fast food employers:
- Schedule publishing with 14-day (fast food) or 72-hour (retail) enforcement
- Change tracking with automatic premium pay calculation ($10-$75)
- Clopening detection and $100 premium payment (or employee consent)
- Good faith estimate templates for new hires
- Employee right-to-decline tracking
⏰ Spread-of-Hours Tracking
Automatic detection and payment:
- Calculate spread (first punch to last punch, including breaks)
- Flag days with 10+ hour spread
- Automatically add 1 hour at minimum wage to paycheck
- Exclude exempt employees and residential employees
📋 Wage Notice Automation
Required capabilities:
- Generate compliant wage notices at hire
- Annual distribution by February 1 (if rates changed)
- Track acknowledgments (signed copies)
- Multi-language support (English, Spanish, etc.)
- Trigger new notices when pay rate changes
🚫 Salary History Ban Enforcement
ATS and recruiting tools must:
- Block salary history questions in application forms
- Remove "current salary" fields
- Train hiring managers with reminders
- Provide approved interview question templates
⚠️ NY WARN Act Tracking
For employers with 50+ employees:
- Headcount tracking by location
- Layoff scenario planning (triggers WARN thresholds)
- 90-day notice templates and tracking
- Integration with state workforce agency for filing
Top HR Software for New York Compliance
These platforms handle both NY state and NYC requirements:
1. Rippling
Best for: Multi-state companies with NY and NYC employees
Rippling's location-based policy engine automatically detects whether an employee works in NYC or elsewhere in NY and applies the correct rules. PFL deductions, NYC sick leave tracking, and Fair Workweek scheduling features activate automatically for the right employees.
New York-Specific Features:
- Automatic NY PFL deductions and leave tracking
- NYC sick leave separate from upstate NY employees
- Spread-of-hours pay calculation
- Wage notice generation and annual distribution
- NYC Fair Workweek schedule management (retail/fast food)
- Salary history ban compliance (blocks fields)
Pricing: Starts at $8/user/month
Best for: 10-500 employees with multi-location operations
Read full Rippling review →2. ADP Workforce Now
Best for: Larger NY employers (50-1000 employees)
ADP has deep New York compliance expertise and a dedicated NY support team. Their NY package includes PFL administration, wage notice automation, NYC sick leave tracking, and NY WARN Act tools. The platform integrates with major NY disability carriers.
New York-Specific Features:
- NY Paid Family Leave integration (NY State Insurance Fund, etc.)
- NYC earned sick time tracking (separate policy)
- Spread-of-hours automatic calculation
- Wage notice templates and distribution tracking
- NY WARN Act notice generation
- NYC Fair Workweek compliance (for applicable industries)
Pricing: Custom (typically $15-25/employee/month)
Best for: Mid-to-large NY businesses with dedicated HR
Read full ADP review →3. Paychex Flex
Best for: NY small businesses (5-100 employees)
Paychex is based in Rochester, NY, and knows New York compliance inside-out. Their Flex platform handles PFL deductions, wage notices, and NYC-specific policies automatically. The mobile app supports spread-of-hours tracking and NYC sick leave requests.
New York-Specific Features:
- NY PFL premium calculation and deduction
- NYC sick leave accrual and tracking
- Wage notice automation (hire + annual)
- Spread-of-hours pay
- NY-specific payroll forms and tax filing
- Dedicated NY compliance support
Pricing: $39+ base + per employee
Best for: Small NY businesses without dedicated HR staff
Read full Paychex review →4. Paylocity
Best for: NYC retail and fast food (Fair Workweek compliance)
Paylocity's scheduling module is built for NYC's Fair Workweek Law. Managers can't publish schedules late, employees get automatic premium pay for last-minute changes, and clopening shifts trigger alerts. The platform also handles PFL and NYC sick leave seamlessly.
New York-Specific Features:
- NYC Fair Workweek scheduling (14-day and 72-hour rules)
- Automatic premium pay for schedule changes
- Clopening detection and $100 premium
- NY PFL administration
- NYC sick leave tracking
- Good faith schedule estimates
Pricing: Custom (typically $12-20/employee/month)
Best for: 20-500 employees in NYC retail/fast food
Read full Paylocity review →5. Gusto
Best for: NY startups and small businesses (1-50 employees)
Gusto handles the basics well: NY PFL deductions, wage notices, and NYC sick leave accrual. While it doesn't have advanced Fair Workweek features, it's perfect for small NY businesses that need compliant payroll and basic HR without enterprise complexity.
New York-Specific Features:
- NY Paid Family Leave deductions
- NYC sick leave tracking
- Wage notice generation
- NY new hire reporting
- State tax compliance
- Multi-location support (NYC vs. upstate)
Pricing: $40/month + $6/person
Best for: NY small businesses without complex scheduling
Read full Gusto review →6. Zenefits
Best for: Tech startups with NY remote employees
Zenefits offers solid New York compliance features with a modern, user-friendly interface. The platform handles NY PFL, NYC sick leave, and location-based policy enforcement. Best for companies with distributed teams that include NY workers.
New York-Specific Features:
- NY Paid Family Leave tracking
- NYC sick leave (separate from other locations)
- Wage notice automation
- Location-based PTO policies
- Salary history ban compliance (ATS)
- NY new hire reporting
Pricing: Starts at $8/employee/month
Best for: 10-200 employees with remote NY workers
Read full Zenefits review →New York HR Compliance FAQ
What's the difference between NY state sick leave and NYC sick leave?
NY state law provides minimum sick leave based on employer size (varies by company size and is relatively new). NYC's Earned Safe and Sick Time law (in effect since 2014) is more generous: 40-56 hours per year depending on company size. If you have NYC employees, you must comply with both—typically, you provide whichever is more generous. Most NYC employers track NYC sick leave as a separate bucket.
How does NY Paid Family Leave work with FMLA?
NY PFL and federal FMLA run concurrently when both apply. If an employee takes PFL for bonding with a new child and is FMLA-eligible, the 12 weeks count against both. However, PFL covers more workers (only 26-week tenure required vs. 12 months for FMLA), so some employees qualify for PFL but not FMLA. Your software must track both separately and flag overlaps.
What is spread-of-hours pay?
If the time between an employee's first and last work hours in a day exceeds 10 hours, you must pay them an extra hour at minimum wage. Example: Employee works 8am-12pm, then 2pm-7pm (9 hours worked, but 11-hour spread from 8am-7pm). You owe 1 hour of spread-of-hours pay. This is separate from overtime. Not all workers qualify (exempt employees and certain residential employees are excluded).
Does NYC Fair Workweek apply to my business?
It depends on your industry and size. Fast food: Applies to chains with 30+ locations nationally and NYC locations with 30+ employees. Retail: Applies to NYC retail employers with 20+ employees. If you don't fall into these categories, Fair Workweek doesn't apply—but NYC sick leave and other NYC rules still do.
When does NY WARN Act apply vs. federal WARN?
NY WARN is stricter than federal. Federal WARN requires 60 days' notice for employers with 100+ employees. NY WARN requires 90 days' notice for employers with 50+ employees in New York. NY also covers relocations 50+ miles away. If you meet NY thresholds, you must comply with NY WARN (federal WARN doesn't override it).
Can I ask about salary expectations if I can't ask about salary history?
Yes! New York's salary history ban prohibits asking what someone currently makes or made previously, but you can ask about their salary expectations for the role you're hiring for. You should also share the salary range for the position upfront (NYC requires this in job postings for 4+ employee companies).
What happens if I don't provide wage notices?
Failure to provide wage notices at hire or annually (if rates changed) triggers penalties of $50 per day per employee, capped at $5,000 per employee. Employees can also sue for damages. Wage notices must be in English and the employee's primary language (if the state provides a translation). Keep signed acknowledgments on file.
Do remote workers in NYC need NYC sick leave?
Yes. If your employee's primary work location is NYC (even if they work from home), NYC sick leave applies. The law is based on where work is performed, not where your office is. If you have fully remote employees living in NYC, they're entitled to NYC earned safe and sick time.
How often do I need to pay employees in New York?
It depends on job type. Manual workers (laborers, mechanics, etc.) must be paid weekly. All other employees must be paid at least semi-monthly (twice per month). Railroad and commission-based employees have different rules. Violating pay frequency requirements triggers complaints and penalties.
What is "clopening" and why does it cost $100?
"Clopening" is when an employee works a closing shift and then opens the next day with fewer than 11 hours between shifts (close at 11pm, open at 7am = 8 hours rest). NYC's Fair Workweek Law requires a $100 premium for clopening shifts unless the employee voluntarily consents in writing. This applies to fast food and retail workers covered by Fair Workweek.
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