New York City has some of the strongest worker protection laws in the country — and many small business owners either don’t know what’s required or mistakenly believe these laws apply only to large companies. NYC’s paid sick leave law, minimum wage rules, wage theft protections, and Fair Workweek requirements apply to most NYC employers regardless of size. This guide covers what employers must provide and what workers are entitled to demand.
NYC Paid Sick and Safe Leave
Under NYC’s Earned Safe and Sick Time Act, all NYC employers with 5 or more employees must provide paid sick leave. Employers with fewer than 5 employees must provide unpaid sick leave (with an exception: employers of domestic workers must provide 1 paid day). Employers with 100 or more employees must provide up to 56 hours (7 days) per year.
Accrual
Employees accrue 1 hour of sick leave for every 30 hours worked, up to the applicable maximum. Accrual begins on the first day of employment; employees can use accrued leave after 120 days of employment.
Permitted Uses
Sick leave can be used for the employee’s own illness or medical care, care for a family member’s illness, or a “safe” leave reason — absences related to domestic violence, sexual assault, stalking, or human trafficking affecting the employee or a family member.
Anti-Retaliation
It is illegal to discipline, discharge, or retaliate against an employee for using or requesting sick leave. Doing so exposes the employer to DCWP enforcement action and civil liability.
NYC Minimum Wage
New York City’s minimum wage is $16.50 per hour for most workers as of 2024 (confirm the current rate at nyc.gov/workers — the rate increases annually). This is higher than the state minimum wage and applies to all NYC employers regardless of size.
- Tipped workers: NYC’s cash wage for tipped food service workers is lower, but tips must bring the total to at least the full minimum wage — otherwise the employer must make up the difference
- Fast food workers: May have a separate, higher minimum wage under the NYC fast food worker rules — check nyc.gov/workers for the current fast food minimum
- Domestic workers: Subject to state domestic worker minimum wage rules, not lower
Wage Theft: What It Is and How to Report It
Wage theft occurs when an employer fails to pay workers what they are legally owed. Common forms in NYC include:
- Paying below minimum wage
- Not paying overtime (most workers must receive 1.5x their regular rate for hours over 40 per week)
- Illegal deductions from paychecks
- Making workers work off the clock before or after their shift
- Misclassifying employees as independent contractors to avoid payroll obligations
- Not paying out all earned wages upon termination
If you are a worker experiencing wage theft: File a complaint with DCWP at nyc.gov/dcwp or call (212) 487-4444. You can also file with the NYS Department of Labor at labor.ny.gov. Complaints can be filed anonymously. DCWP has authority to recover unpaid wages and assess penalties against employers.
NYC Fair Workweek Law
NYC’s Fair Workweek Law applies to fast food and retail workers and requires employers to provide:
- Fast food employers: Advance written schedules at least 14 days before the start of the work week; premium pay for schedule changes with less than 14 days’ notice; good faith estimate of work hours when hired; no “clopening” (working a closing shift followed by an opening shift with less than 11 hours between) without worker’s written consent and extra pay
- Retail employers: Advance written schedules at least 72 hours before the start of the work week; prohibits on-call scheduling and requires cancellation pay for shifts cancelled with less than 72 hours’ notice
Required Postings
All NYC employers must post required notices in a visible location in the workplace, including:
- NYC Earned Safe and Sick Time Act notice (available at nyc.gov/dcwp)
- NYC Minimum Wage notice
- NYC Human Rights Law notice
- Federal and state workplace rights posters (available from the DOL)
DCWP inspectors check for required postings — failure to post is a citable violation. Download all required postings at nyc.gov/dcwp and nyc.gov/humanrights.
Employee vs. Independent Contractor
Misclassifying employees as independent contractors to avoid paying benefits, payroll taxes, and minimum wage is one of the most common — and most aggressively enforced — wage violations in NYC. New York uses a multi-factor test to determine worker status. Generally, if you control how the work is done (not just the end result), provide tools and equipment, and the work is integral to your core business, the worker is likely an employee — not a contractor. Misclassification exposes employers to back taxes, penalties, and civil lawsuits.
Resources for Workers and Employers
- DCWP Worker Rights: (212) 487-4444 | nyc.gov/dcwp — file wage complaints, get information on rights
- NYC Workers’ Bill of Rights: nyc.gov/workersrights — comprehensive overview
- NYS Department of Labor: dol.ny.gov or 1-888-4-NYSDOL — state minimum wage and overtime enforcement
- NYC Commission on Human Rights: (212) 416-0197 — employment discrimination complaints
- Make the Road New York: (718) 565-8500 — worker rights advocacy, especially for immigrant workers
- Legal Aid Society Workers’ Rights Project: (212) 577-3300 — free legal help for low-wage workers
Frequently Asked Questions
Do NYC sick leave laws apply to part-time employees?
Yes. All employees — full-time, part-time, and temporary — accrue sick leave based on hours worked. There is no minimum number of hours per week required to qualify for accrual.
I’m a small business with 3 employees. Do I still need to provide sick leave?
You must provide unpaid sick leave to all employees under the NYC law. Paid sick leave is required once you reach 5 or more employees. However, employers of domestic workers must provide 1 paid day regardless of size.
An employee filed a wage complaint against my business. What should I do?
Contact an employment attorney immediately. DCWP or NYSDOL investigations can result in back pay awards, penalties, and public enforcement actions. Gather your payroll records, timekeeping records, and any documentation relevant to the claim. Do not destroy records — that can constitute obstruction and make your situation significantly worse.
Can I pay my employees cash to avoid payroll taxes?
Paying employees in cash is legal if you properly withhold and remit all required payroll taxes and provide proper wage statements. Paying cash to avoid payroll taxes or hide wages is illegal — it constitutes tax fraud and wage theft. The IRS and NYSDOL actively investigate businesses that pay cash workers off the books.
