NY State Payroll Compliance Guide 2026: Topic‑by‑Topic Guidance

Payroll compliance in New York State continues to evolve, with multiple regulatory updates taking effect January 1, 2026. Below is a streamlined, fully updated 2026 guide for employers.

1. Minimum Wage & Overtime Updates

Minimum Wage (2026)

Effective January 1, 2026, New York’s minimum wage rates are:

• NYC, Long Island & Westchester: $17.00/hr [ny.gov]
• Rest of NY State: $16.00/hr [ny.gov]

Hospitality (Tipped) Minimum Wage – 2026

Food service worker cash wages and tip credits:

• NYC/Long Island/Westchester:
  • Cash wage: $11.35/hr
  • Tip credit: $5.65/hr 
• Rest of NY:
  • Cash wage: $10.70/hr
  • Tip credit: $5.30/hr

Home Health Aide Minimum Wage – 2026

• NYC/Long Island/Westchester: $19.65/hr
• Rest of NY: $18.65/hr 

Minimum Exempt Salary Requirements (2026)

To classify an employee as exempt under NY wage law in 2026, employers must pay:

• NYC, Nassau, Suffolk, Westchester:
  • $1,275.00/week (≈ $66,300/year) [natlawreview.com]
• Rest of NY State:
  • $1,199.10/week (≈ $62,353.20/year) [natlawreview.com]

If an employee earns below these thresholds, they must be classified as non‑exempt and paid overtime.

Overtime (2026)

• Most employees must receive 1.5× their regular rate for hours worked over 40/week.
• Industry‑specific wage orders (e.g., hospitality, building service) continue to apply.

2. Paid Leave Mandates

Sick Leave (2026)

Unchanged from prior years:

• 5–99 employees: 40 hours paid sick leave
• 100+ employees: 56 hours paid sick leave
• <5 employees: 40 hours unpaid (paid if net income > $1M)
• Accrual: 1 hr per 30 hrs worked

Paid Family Leave (PFL) – 2026 Updates

• Employee Contribution Rate: 0.432% of gross wages
• Annual Max Contribution: $411.91
• Maximum Weekly Benefit: $1,228.53 (67% of NYSAWW)
  [info.shelt...rpoint.com], [paidfamily...ave.ny.gov]

Employees remain eligible for up to 12 weeks of job‑protected leave.

3. Payroll Tax Changes

Withholding Tables (2026)

• NYS issues updated tables annually; employers must implement 2026 tables in payroll systems.

Unemployment Insurance (UI) – 2026

Key 2026 update:

• Taxable Wage Base: $13,000 (up from $12,800 in 2025)

Starting 2027, the taxable wage base will index to 16% of NY State Average Annual Wage.

4. Retirement Plan Requirements

NY Secure Choice Savings Program (2026)

• Applies to employers with 10+ employees and 2+ years in business.
• Employers must either offer a qualified plan (401k, SEP, etc.) or enroll employees in the state-facilitated Roth IRA.
• No employer contribution required.

5. Wage Theft & Recordkeeping

Wage Theft Prevention Act (2026)

• Provide new hire wage notices in the employee’s primary language.
• Issue updated notices when pay terms change.

Pay Stub Requirements

Must include: dates of work, employer details, employee name, pay rates, hours worked (regular & OT), deductions, allowances.

• Records must be kept for 6 years.

6. Industry-Specific Mandates

Hospitality (2026)

• Tip credits, spread‑of‑hours, uniform allowances apply under the Hospitality Wage Order.
• Ensure compliance with updated 2026 hospitality cash wage and tip credit structures.
  [peopletopayroll.com]

Construction (2026)

• Requirements include prevailing wage, certified payroll, and apprentice ratios.

Healthcare (2026)

• Rules continue for scheduling, safe staffing, and break regulations.
• Review 2026 updates relevant to your facility type.

7. Technology & Data Security

Payroll Systems (2026)

• Systems must comply with the NY SHIELD Act.
• Ensure your payroll vendor meets current 2026 data security requirements.

Disclaimer

This guide is for informational use only and does not constitute legal advice. Always consult a qualified payroll or employment law professional for compliance decisions.