Takeaways

• The New York City Department of Consumer and Worker Protection’s final rules implementing the 2026 amendments to the Earned Safe and Sick Time Act adopted several notable revisions that impose additional administrative and recordkeeping obligations on employers effective 07.23.26.
• The final rules clarify various aspects of the new unpaid 32-hour leave entitlement, including the interplay with more generous paid leave policies and reinstatement obligations upon rehire.
• Organizations should update policies, payroll systems and rehire procedures.

Article

Following enactment of Local Law 145 of 2025, the New York City Department of Consumer and Worker Protection (DCWP) recently finalized amendments to the rules implementing the Earned Safe and Sick Time Act (ESSTA). The final amended rules largely adopt the regulatory framework proposed in January 2026, but they provide additional guidance on employer administration of the law’s expanded leave requirements and impose several new compliance obligations. The rules go into effect July 23, 2026.

The amended ESSTA significantly expanded employees’ protected time off rights by adding new qualifying reasons for leave, creating an immediately available separate annual bank of 32 hours of unpaid protected time off, and codifying up to 20 hours of paid prenatal leave. The final rules primarily focus on how employers must administer those new entitlements.

Final Rules Largely Track Proposed Rules

Most of the final rules...

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