(The factual summary in this article is based in large part on a contribution from Richard Landau of Jackson Lewis.)
A new set of amendments, enacted on October 25, 2025, will soon introduce significant changes to the Earned Safe and Sick Time Act (ESSTA) and the Temporary Schedule Change Act (TSCA). While the TSCA requirements are scaling back, the ESSTA obligations are expanding, creating new administrative burdens and potential liabilities.
These changes take effect on February 22, 2026. Now is the time to understand what’s coming and prepare your policies, payroll systems, and management teams to ensure a smooth transition and avoid costly penalties.
You can view the official legislation details here:
The New York City Council – File: Int 0780-2024
1. ESSTA Expands with 32 Hours of Unpaid Leave
The most significant change is a new mandate for unpaid leave. In addition to the 40 or 56 hours of paid safe and sick time employers must already provide (depending on size) , employers will now be required to provide 32 hours of unpaid safe and sick time.
Here are the key details on this new requirement:
- Front-Loaded: This unpaid time must be given to employees immediately upon hire and at the beginning of each subsequent calendar year.
- Immediate Use: Just like paid time, there is no waiting period for employees to use this new unpaid leave.
- Separate Tracking: Employers must track and report paid and unpaid leave balances separately to comply with notice and recordkeeping rules.
This new, separate tracking requirement means businesses will need to ensure their payroll and HR systems are configured to manage and report on this new unpaid leave balance, distinct from existing paid leave.
2. ESSTA’s Expanded Uses: More Reasons for Leave
The amendments also broaden the qualifying reasons an employee can use their safe and sick time (both paid and unpaid).
New permissible uses include:
- Caregiving: For employees who qualify as “caregivers” to care for a minor child or a designated “care recipient”.
- Benefits or Housing: To attend proceedings or take actions related to applying for or maintaining subsistence benefits (like public assistance) or housing for themselves, a family member, or a care recipient.
- Workplace Violence: To meet with legal or social service providers, or take other protective actions, if the employee or a family member was a victim of workplace violence.
- Public Disasters: When a “public disaster” (like a severe storm, terrorist attack, or fire) results in the closure of the employee’s workplace , the closure of a child’s school , or a public directive to avoid travel.
These new categories will require employers to update their internal leave policies and employee handbooks to reflect the new qualifying reasons.
3. Paid Prenatal Leave: New Administrative Duties
The amendments formally write New York State’s paid prenatal leave requirements into the city’s ESSTA. This provides 20 hours of paid prenatal leave to eligible employees during a 52-week period, which is in addition to the other paid and unpaid safe and sick time.
This codification into ESSTA brings several new, specific administrative duties for NYC employers:
- Update Your Policy: You must modify your current safe and sick time policy to include details on prenatal leave and distribute this revised policy to all new hires and current employees.
- Post and Distribute Notices: Employers must post and distribute the NYC Department of Consumer and Worker’s Protection’s updated prenatal leave notice.
- Update Pay Stubs: For any pay period in which an employee uses prenatal leave, you must detail the amount of leave used and the total remaining balance on their pay statement.
4. Reduced Obligations for Temporary Schedule Changes
The amendments do bring some good news for employers by scaling back most obligations under the Temporary Schedule Change Act (TSCA).
Previously, employers had to approve up to two temporary schedule changes per year for certain “personal events.” The law now recognizes that these events are largely covered by the expanded uses under ESSTA. As a result, employers are no longer obligated to approve these requests. You may now approve, deny, or propose an alternative schedule.
However, to key obligations remain:
- You must still respond to an employee’s request “as soon as practicable.”
- TSCA’s anti-retaliation protections remain in full effect. You cannot penalize an employee in any way simply for making the request.
Next Steps: Preparing for the 2026 Deadline
With the February 22, 2026 effective date on the horizon, employers must act to prepare. We recommend the following steps:
- Review and Update Policies: Contact your legal counsel to review and revise your employee handbooks, leave policies, and new hire paperwork to reflect all these changes.
- Audit Your HR & Payroll Systems: Confirm that your payroll or HRIS provider can handle tracking and reporting three separate leave balances: Paid ESSTA, Unpaid ESSTA, and Paid Prenatal Leave.
- Train Your Management Team: Ensure your frontline supervisors and managers understand the new leave reasons, the updated TSCA rules, and especially the anti-retaliation provisions.
- Prepare New Notices: Plan to distribute the updated prenatal leave notice and your revised policies to all current employees and incorporate them into your new-hire onboarding process.
Navigating these regulatory changes is an essential part is an essential part of running a business in New York City. Our team is here to help you to understand these new obligations and connect you with the right resources to ensure you are prepared for a seamless transition.
