New York State and New York City Paid Sick Leave in 2021

As 2020 winds down and the new year approaches, the New York State Department of Labor finally released much anticipated guidance in the form of a FAQ on the implementation of the upcoming statewide paid sick leave law (NYPSL). Large employers with 100 or more employees across all locations will offer 56 hours of paid leave to their New York employees beginning in 2021. Employers with employees located in New York City have been complying with the New York City Earned Sick and Safe Leave law (ESSL) since 2014. The City has an updated FAQ available as well. Beginning in 2021, the NYC law will align with the state law so that large employers with 100 or more employees will provide 56 hours of paid leave under both laws. This leave is to be used concurrently (not consecutively) where applicable.

Employers ranging in size between 5 and 99 employees across all locations will still be required to provide 40 hours of annual sick leave to NYC employees under the NYC law, and this amount will align with the new obligation under the NYS law in 2021 for employers of this size.

Beginning in November, employers will need to indicate the number of hours accrued under NYC ESSL for each employee working in NYC on all pay stubs. An employee notice is also required, but as of the time of this alert, the notice has not yet been issued.

Any existing PTO policy that already provides at least 56 hours annually (accrued at a rate of 1 hour per every 30 hours worked, or frontloaded), complies with the new law, and will not need to provide any additional leave under the law. Similarly, any PTO policies for smaller employers that already offer the minimum amount required by the new law will generally not have to be amended.

Employers should decide if they are using the accrual method (tracking would need to look back to hours worked beginning September 30th), or the front loading method, which could begin January 1. NYC employers should discuss the pay stub reporting with payroll vendors now to ensure proper tracking.  Finally, all employee handbooks should be updated by the end of 2020 to reflect the new leave policy.