New York City Council Passes New Pay Equity Reporting Bill 05
Major Updates to NYC Earned Safe and Sick Time Act (ESSTA) for 2026 06 New York City recently amended the Earned Safe and Sick Time Act (ESSTA) , it will take effect on or around February 22, 2026 . • Public Disaster: Including fires, explosions, severe weather, or other declared public
ESSTA. The qualifying reasons for temporary schedule changes under TSCA are now incorporated into ESSTA. While employees may still request temporary schedule changes and are protected from retaliation, employers are no longer required to grant the request, but must respond as soon as practicable and may propose alternatives. What Employers Should Do Now • Update existing ESSTA and TSCA policies by the effective date
a statement certifying the accuracy of the information contained in their report. Employers who fail to comply with the bill’s requirements will face penalties. A first-time violation may be remedied within 30 days of receiving a summons. If the employer does not remedy the violation, it will face an initial civil penalty of $1,000, and each subsequent violation will carry a $5,000 penalty. Citywide Pay Equity Study The second bill, Int. No. 984-A, would work in tandem with Int. No. 982-A, requiring the city to create a pay equity study no later than one year after employers submit their reports, and annually thereafter. This study must evaluate the data from the pay reports to assess disparities in compensation based on gender, race or ethnicity, identify prevalent industries with disparities and track trends in occupational segregation. Dealers who have employees in New York City, or beyond, should carefully watch this legislation for a few reasons. First, New York City legislation sometimes serves
as a laboratory experiment for future statewide legislation. If
The New York City Council has passed two new pay equity reporting bills ( Int. 982-A and Int. 984-A ) now awaiting Mayor Adams’ signature. If enacted, these bills will impose significant new reporting obligations on employers, including many dealerships operating in or near New York City. Annual Pay Reporting for Large Employers The first bill requires employers with 200 or more employees to submit an annual pay report. When determining the number of employees, all full- time, part-time, and temporary employees must be counted. While many employers have fluctuating staffing levels, the count is defined as “the highest total number of employees concurrently employed at any point during the reporting year.” Additionally, an “employee” includes any person who “is employed for hire within the city of New York.” Once the City publishes a standardized form, employers will be required to submit the pay report within the next year and annually thereafter. Employers must also sign
these bills prove successful in the City, it is possible similar reporting requirements could be implemented statewide. The bill is ambiguous as to whether employers with more than two hundred employees, but fewer than two hundred in New York City, would be covered by the bill. It is thus presently unclear whether the employer threshold applies to total headcount or only to employees based in New York City. GNYADA will keep dealers updated on the details of this new law as it develops. GNYADA thanks Bond Schoeneck and King, PPLC for providing the contents of this this article.
emergencies, and situations where officials advise staying indoors or avoiding travel. Caregiving Responsibilities: To care for a minor child or care recipient. Subsistence Benefits/Housing: To attend legal proceedings or take steps necessary to apply for, maintain, or restore subsistence benefits or shelter Workplace Violence: For legal, law enforcement, or social services related to incidents in which the employee or family member is a victim.
The amendments make significant changes to both the ESSTA and the Temporary Schedule Change Act (TSCA). The ESSTA requires covered employers to provide sick/safe leave based on employer size: • 100+ employees: up to 56 hours of paid sick/safe leave • 5–99 employees: up to 40 hours Leave must accrue at 1 hour per 30 hours worked, though employers may front-load. Employees may currently use leave for their own medical needs, to care for a family member, for workplace closures or childcare closures due to a public health emergency, or for domestic violence, sexual offenses, stalking, or human trafficking. Expanded Uses of ESSTA Leave The amendments add new reasons, employees can use ESSTA leave for:
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Track and report paid and unpaid ESSTA leave on pay statements Train supervisors and HR staff to ensure proper compliance and avoid retaliation claims
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Additional Unpaid Sick Time Employers must now provide 32 hours of unpaid sick/safe leave upon hire and on the first day of each benefit year. This time must be front- loaded and available for any ESSTA- qualifying purpose but does not need to carry over.
The NYC Department of Consumer and Worker Protection is expected to issue updated guidance, including revised notices. GNYADA thanks Stephanie H. Fedorka and Rachel E. Kreutzer of Bond, Schoeneck & King for the contents of this article.
Alignment with the TSCA The law realigns the TSCA with the
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