On June 23, 2026, New York City’s Department of Consumer and Worker Protection (DCWP) finalized its amended rules under the Earned Safe and Sick Time Act (“ESSTA”). The final rule took effect on July 23, 2026.
As you may recall, on February 22, 2026, the amendments to the ESSTA took effect, which expanded qualifying reasons for leave; established a new 32-hour bank of immediately available unpaid leave; required employers to provide 20 hours of paid prenatal leave during any 52-week calendar period; and incorporated requirements of the Temporary Schedule Change Act to the ESSTA.
The DCWP issued updated materials to provide guidance regarding the new requirements including Frequently Asked Questions, a revised Notice of Employee Rights, and proposed rules. The final rule largely adopts the regulatory scheme set forth in the proposed rules but clarifies certain issues and adds additional obligations for employers.
Specifically, the final rule clarifies that employers may provide some or all of the 32 hours as an equivalent amount of paid protected time off. Further, the final rule makes it clear that providing any unpaid safe and sick leave as paid leave does not affect an employer’s obligation to provide paid safe and sick leave pursuant to the other requirements of the ESSTA (40 or 56 hours of paid safe and sick time, depending on the size of the employer).
The final rule also adds a new provision requiring employers to reinstate an employee’s unused portion of the 32 hours of unpaid protected time off if the employee separates from employment and is rehired within the same calendar year. This obligation applies in addition to the ESSTA’s existing requirement to reinstate accrued protected time off for eligible rehired employees.
In addition, the final rule adds a new provision that provides when an employee’s tenure ends, the employer must either continue to provide the employee with access to the employer’s electronic system for six months, OR provide a written statement containing required leave information for their last pay period no later than one week after their last payday.
New York City employers should review their policies to ensure compliance with the finalized rules. Should you have any questions, please contact Ali Law Group.
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