New York Employment Law Changes in 2026: What Long Island Workers Need to Know About the Trapped at Work Act and Wage Increases

Bottom line: New York’s 2026 employment-law package — minimum wage to $16.50 on Long Island, expanded paid family leave, new pay-transparency rules, broader NYSHRL protections, and tighter wage-theft enforcement — moves the floor of worker protections higher than any year since 2019. Every Long Island worker should know which provisions apply to their employer, which deadlines matter, and where the new remedies are.

Long Island workers are gaining significant new protections in 2026 as New York State and New York City implement sweeping employment law changes. From the groundbreaking “Trapped at Work Act” that eliminates exploitative training repayment agreements to substantial minimum wage increases in Nassau and Suffolk Counties, these changes represent the most comprehensive expansion of worker rights in years.

If you work on Long Island or are considering employment in Nassau County, Suffolk County, or New York City, understanding these new laws could mean thousands of dollars in additional wages and protection from unfair employment practices.

The Trapped at Work Act: Ending “Stay or Pay” Agreements

The most significant change for Long Island workers is the Trapped at Work Act, which became effective December 19, 2025, with recent amendments extending implementation to December 19, 2026. This law eliminates “employment promissory notes”—agreements that trap workers by requiring them to pay back training costs if they leave before a specified time period.

What “Stay or Pay” Agreements Look Like

Many Long Island employers, particularly in healthcare, technology, and skilled trades, have required new hires to sign agreements stating:

• “If you leave within 18 months, you owe us $5,000 for training costs”
• “Repay certification expenses if employment ends before two years”
• “Training investment must be reimbursed if you quit within one year”

These agreements effectively trapped workers in low-paying or abusive jobs because they couldn’t afford the financial penalty for leaving.

New Protections Under the Trapped at Work Act

Immediate Relief: All existing “stay or pay” agreements are now void and unenforceable. If your employer threatens to enforce one, they’re violating state law.

Future Protection: Employers cannot require repayment of training costs as a condition of employment, with limited exceptions for transferable credentials like professional licenses or industry-recognized certifications.

Penalty Structure: Employers face fines of $1,000 to $5,000 per violation, plus potential attorneys’ fees if they try to enforce illegal agreements.

Exceptions and Gray Areas

The amended law allows repayment agreements for:

• Transferable credentials (degrees, licenses, certificates that enhance employability across the industry)
• Financial bonuses and relocation assistance (but not if terminated without misconduct)
• Payroll advances and equipment purchases
• Educational sabbaticals for certain employees

However, even permitted agreements cannot require repayment if you’re terminated for any reason other than misconduct, or if job duties were misrepresented.

2026 New York Wage & Salary Floor — At a Glance

Threshold	2025	2026	Applies To	Authority
Minimum wage — LI / NYC / Westchester	$16.00/hr	$16.50/hr	All non-exempt hourly	NYS Min. Wage Act §652
Minimum wage — Rest of NY	$15.00/hr	$15.50/hr	All non-exempt hourly	NYS Min. Wage Act §652
Salary threshold — Executive / Administrative exempt (LI / NYC / Westchester)	$1,200/wk ($62,400/yr)	$1,237.50/wk ($64,350/yr)	Salaried exempt employees	NYLL 12 NYCRR §142-2.14
Salary threshold — Executive / Administrative exempt (Rest of NY)	$1,124.20/wk ($58,458/yr)	$1,161.65/wk ($60,406/yr)	Salaried exempt employees	NYLL 12 NYCRR §142-2.14
Tipped food-service workers — cash wage (LI / NYC / Westchester)	$10.65/hr	$11.00/hr	Tipped food-service	Tip credit = $5.50/hr
Spread-of-hours pay trigger	Hours worked over 10 in a single workday	Same — pay = 1 extra hour at minimum wage	All workers paid at or near minimum	NYLL 12 NYCRR §142-2.4
Overtime threshold	40 hours/week	40 hours/week	Non-exempt	FLSA §207 + NYLL §142-2.2
Paid Family Leave benefit	67% of average weekly wage, capped	Cap rises with statewide AWW	NY private-sector employees	WCL §204

The practical worker takeaway: if you are paid at or near the minimum wage, the $16.50/hour Long Island floor automatically increases your paychecks for hours worked in 2026 — and your spread-of-hours and overtime math is recomputed against the new floor. If you are paid as a salaried exempt employee at the prior threshold ($62,400), your employer must either raise you to $64,350 or reclassify you as non-exempt and start paying overtime.

Significant Minimum Wage and Salary Threshold Increases

Long Island workers saw substantial wage increases effective January 1, 2026:

Minimum Wage Rates

• Nassau County: $17.00/hour (up from $16.00)
• Suffolk County: $17.00/hour (up from $16.00)
• Westchester County: $17.00/hour (up from $16.00)
• Rest of New York State: $16.00/hour (up from $15.00)

Exempt Employee Salary Thresholds

For administrative and executive employees to be exempt from overtime:

• Nassau/Suffolk/Westchester: $66,300/year ($1,275/week)
• Rest of New York State: $62,353/year ($1,199.10/week)

Impact on Long Island Workers

Reclassification Opportunities: If your salary falls below the new threshold, your employer must either raise your pay or reclassify you as non-exempt, making you eligible for overtime pay at time-and-a-half for hours over 40 per week.

Pay Notice Requirements: Employers must provide new wage notices under Labor Law Section 195 when classification changes occur. Failure to comply can result in $5,000 penalties per affected worker.

Overtime Calculations: Newly non-exempt employees may discover they’re owed significant back overtime if they’ve been working more than 40 hours per week without proper compensation.

Disparate Impact Discrimination Now Codified

Effective December 19, 2025, New York State Human Rights Law now explicitly recognizes disparate impact discrimination. This means employers can be held liable for policies that disproportionately harm protected groups, even without discriminatory intent.

What This Means for Long Island Workers

Broader Discrimination Protection: You can now challenge employment practices that have a discriminatory effect on protected groups, regardless of whether the employer intended to discriminate.

Common Disparate Impact Scenarios:

• Height or weight requirements that exclude women
• Educational requirements unrelated to job performance
• Credit checks that disproportionately affect minority applicants
• Scheduling policies that disadvantage workers with disabilities

Federal vs. State Protection: While the Trump Administration has directed federal agencies to cease disparate impact claims under Title VII, New York State law now provides stronger protection than federal law.

Credit Check Restrictions for Employment

Starting April 18, 2026, New York employers will be largely prohibited from using credit checks in hiring decisions under amendments to the Fair Credit Reporting Act.

Prohibited Practices

Employers cannot request or use:

• Credit reports or credit scores
• Information about bankruptcies, liens, or judgments
• Any consumer credit history for employment decisions

Limited Exceptions

Credit checks remain permitted for positions involving:

• Signatory authority over funds/assets of $10,000 or more
• Fiduciary responsibility with authority for $10,000+ financial agreements
• Regular access to trade secrets (non-clerical positions)
• Modification of digital security systems

Impact for Long Island Job Seekers

Broader Employment Access: Many Long Island workers previously excluded from opportunities due to credit issues will now have access to more job opportunities.

NYC Employers Already Compliant: New York City has prohibited most employment credit checks since 2015, so many Long Island workers employed in the city already benefit from these protections.

Expanded Sick Leave in New York City

New York City workers gained additional protections effective February 22, 2026, under the expanded Earned Safe and Sick Time Act (ESSTA).

New Unpaid Leave Benefit

• 32 hours of unpaid safe and sick time immediately upon hire
• Available at the start of each calendar year (no proration)
• In addition to existing paid sick time requirements
• Can be used in minimum four-hour increments

Expanded Qualifying Reasons

The amendment expands permissible uses to include:

• Caregiving for disabled family members or household residents
• Pursuing subsistence benefits or housing assistance
• Public disasters causing workplace/school closures or official stay-indoors directives

Relief for Employers

The law eliminates the previous requirement for employers to allow two schedule changes for personal events under the Temporary Schedule Change Law.

What These Changes Mean for Different Industries

Healthcare and Long-Term Care

• Trapped at Work Act eliminates common training repayment agreements for CNAs and other certified positions
• Higher minimum wages benefit home health aides and support staff
• Expanded sick leave helps healthcare workers care for family members

Technology and Finance

• Credit check restrictions open opportunities for workers with financial difficulties
• Salary threshold increases may require reclassifying many IT professionals as overtime-eligible
• Training agreements for coding bootcamps and certifications must meet new “transferable credential” standards

Construction and Skilled Trades

• Apprenticeship programs must restructure training repayment agreements
• Higher minimum wages for entry-level workers
• Disparate impact protections may challenge physical requirements unrelated to job performance

Retail and Service Industries

• Immediate minimum wage increases benefit thousands of Long Island service workers
• Sick leave expansions help workers in customer-facing roles
• Elimination of credit checks opens opportunities in financial services and retail

Enforcement and Worker Rights

State and Local Enforcement

• New York Department of Labor handles Trapped at Work Act violations
• Wage and hour violations can result in significant penalties
• Workers can file complaints with the Commissioner of Labor for various violations

Private Rights of Action

While the Trapped at Work Act doesn’t create a private lawsuit right, workers can recover attorneys’ fees if they successfully defend against illegal enforcement attempts.

Legal Protections

Employers cannot retaliate against workers who:

• Challenge illegal training repayment agreements
• File wage and hour complaints
• Request proper classification and overtime pay
• Report discrimination or seek accommodations

Red Flags: Recognizing Violations

Long Island workers should watch for these warning signs of potential violations:

Employment Agreement Issues

• Signing bonus or training agreements that don’t account for termination without misconduct
• Broad “training cost” repayment clauses without specific transferable credential focus
• Agreements that accelerate payment upon any job separation

Wage and Hour Problems

• Salary below new thresholds without overtime eligibility
• Missing wage notices after classification changes
• Employers claiming exempt status for workers without management duties

Discrimination Concerns

• Job requirements that seem unrelated to actual job functions
• Policies that disproportionately exclude certain groups
• Credit checks for positions not involving financial responsibility

Steps to Take If You’ve Been Affected

For Existing “Stay or Pay” Agreements

1. Review your employment agreement to identify illegal training repayment clauses
2. Document any threats from employers to enforce void agreements
3. Consult with employment counsel about potential violations and remedies
4. File complaints with the New York Department of Labor if appropriate

For Wage and Hour Issues

1. Calculate your actual hourly earnings including all hours worked
2. Request proper classification if you believe you should be overtime-eligible
3. Keep detailed time records of all hours worked over 40 per week
4. Seek legal review of complex salary and exemption questions

For Discrimination Claims

1. Document policies that may have disparate impact
2. Gather evidence of how policies affect protected groups differently
3. File EEOC and state complaints within required timeframes
4. Consider legal action for both individual and class-wide relief

FAQ: New Employment Laws for Long Island Workers

Q: My employer says my training agreement is still valid because it covers a “transferable credential.” How do I know if that’s true? A: True transferable credentials are degrees, licenses, or certificates widely recognized across your industry. Company-specific training generally doesn’t qualify, even if called a “certification.”

Q: I was classified as exempt but earn less than the new salary threshold. What should I do? A: Your employer must either raise your salary to at least $66,300 (Nassau/Suffolk) or reclassify you as non-exempt and pay overtime. Document your hours and request proper classification.

Q: Can my employer still check my credit for a bookkeeping position? A: Only if you have signatory authority over $10,000+ or fiduciary responsibility for major financial agreements. Most bookkeeping positions wouldn’t qualify for the exception.

Q: I work for a Long Island company but live in NYC. Which sick leave laws apply? A: Generally, workplace location determines applicable laws, so NYC sick leave rules would apply to work performed in the city.

Q: My employer is threatening to sue me for training costs. What should I do? A: Don’t panic. Most training repayment agreements are now void under the Trapped at Work Act. Consult with employment counsel immediately—you may be entitled to attorneys’ fees if you successfully defend.

Q: How do I prove disparate impact discrimination? A: You’ll need statistical evidence showing that a policy disproportionately affects a protected group, plus evidence that the policy isn’t justified by business necessity.

The Broader Impact on Long Island Employment

These 2026 changes reflect New York’s commitment to worker protection in an evolving economy. For Long Island workers, the combination of:

• Elimination of exploitative training agreements
• Substantial wage increases
• Expanded discrimination protections
• Restrictions on credit checks
• Enhanced sick leave benefits

Creates a significantly more favorable employment landscape than existed just one year ago.

Working with Employment Law Counsel

The complexity of these new laws, particularly around proper classification, transferable credentials, and disparate impact claims, often requires experienced legal guidance. Many violations result in penalties against employers and potential compensation for affected workers.

Employment law consultation is particularly important for:

• Complex salary and overtime classification issues
• Challenging illegal training repayment agreements
• Discrimination claims involving disparate impact
• Wage and hour violations affecting multiple workers

Contact Our Long Island Employment Law Team

The Law Offices of Jason Tenenbaum helps Nassau and Suffolk County workers navigate complex employment law issues, from wage and hour violations to discrimination claims. We understand how these new laws interact with existing protections and can help you maximize your rights under New York’s evolving employment framework.

If you believe your employer is violating any of these new laws, or if you have questions about how the changes affect your specific situation, we’re here to help. Many employment law cases can be handled on a contingency fee basis, and some violations entitle workers to attorneys’ fees.

New York’s 2026 employment law changes represent a historic expansion of worker protections. Don’t let employers take advantage of the transition period or claim these laws don’t apply to their practices.

Call 516-750-0595 for a free consultation about your employment law concerns. We’re available to discuss wage and hour issues, discrimination claims, and violations of the new worker protection laws. Your employment rights have never been stronger—make sure you’re getting the full benefit of New York’s progressive employment protections.

Related Practice Areas

For a deeper dive into the firm’s coverage of related topics:

• Employment Discrimination Hub

• Long Island Wage and Hour Attorney

• Long Island Wrongful Termination Attorney

• FAQ — 37 questions across 7 practice areas

• [Legal Encyclopedia — NY no-fault, personal injury, and employment-law glossary](/legal-encyclopedia/)

Authoritative External Resources

• U.S. Equal Employment Opportunity Commission (EEOC) — federal anti-discrimination enforcement
• U.S. Department of Labor — Fair Labor Standards Act — federal wage-and-hour rules
• New York Division of Human Rights — state anti-discrimination charges
• New York Department of Labor — Wage and Hour Laws — NYLL framework and Wage Theft Prevention Act

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Last reviewed: 2026-05-20.