New York City Employment Law Updates for Small Businesses in 2025

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As 2025 progresses, small businesses in New York City must stay informed about recent changes in employment laws to ensure compliance and maintain smooth operations. Below is a summary of key updates effective this year:

1. Minimum Wage Increase

Effective January 1, 2025, the minimum wage in New York City has increased to $16.50 per hour (non-tipped). This adjustment is part of the state's ongoing efforts to raise the minimum wage to reflect the cost of living and support workers. Small businesses should update their payroll systems accordingly to comply with this new rate.

2. Paid Family Leave Expansion

Starting January 1, 2025, New York's Paid Family Leave program has expanded to provide up to 12 weeks of leave with increased benefits. Employees can now receive up to 67% of their average weekly wage, capped at 67% of the state's average weekly wage. This expansion aims to offer greater support to employees during significant life events, such as the birth or adoption of a child, or caring for a family member with a serious health condition.

3. Paid Prenatal Leave

Effective January 1, 2025, New York employers are required to provide up to 20 hours of paid prenatal leave for pregnant employees to attend prenatal appointments. This leave is separate from other leave entitlements and is designed to support the health and well-being of expectant mothers in the workforce.

4. Lactation Accommodation Policy Updates

As of May 2025, New York City employers must distribute their written lactation accommodation policy to all new hires and make it readily available to employees. This includes posting the policy prominently in the workplace and electronically on the company's intranet, if available. Additionally, employers are now required to provide up to 30 minutes of paid lactation break time.

5. Safe Hotels Act

Effective May 3, 2025, New York City has implemented the Safe Hotels Act, requiring hotels to obtain a license from the Department of Consumer and Worker Protection to operate. The Act mandates that hotels directly employ all core employees, provide human trafficking recognition training, and equip workers with panic buttons to enhance safety. Small businesses in the hospitality industry should ensure compliance with these new requirements.

Sources:

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