NYC Issues Updated FAQs and Notice of Employee Rights on Amended Earned Safe and Sick Time Act, 3-17-2026

On February 22, 2026, the New York City Department of Consumer and Worker Protection (DCWP) issued updated Frequently Asked Questions (FAQs) and revised model notices addressing the recent amendments to the New York City Earned Safe and Sick Time Act (ESSTA), and released an updated Notice of Employee Rights that must be provided to covered employees working in New York City.

Additionally, DCWP held a public hearing on March 2, 2026, regarding proposed revisions to ESSTA’s implementing rules, which they released on January 22.

Background

Amendments to ESSTA and the Temporary Schedule Change Act (TSCA) that took effect on February 22, 2026, require employers to provide an additional bank of 32 hours of unpaid, job-protected safe and sick time, in addition to the paid safe/sick time already required under the law. The amendments also expand the permissible reasons for leave and are accompanied by DCWP’s stated intent to pursue more proactive, data-driven enforcement. Read more in KD’s detailed alert.

Key FAQ Clarifications

The updated FAQs answer several previously open questions that are critical for compliance:

• Employers must provide 32 hours of unpaid, job-protected safe and sick time—available for immediate use by both current employees (as of February 22, 2026) and new hires. This 32-hour bank must be fully replenished and made immediately available again on the first day of each employer-chosen “calendar year.”
• Employers may not prorate the immediately available 32 hours for mid-year hires; new employees hired partway through the year must still receive the full 32-hour unpaid bank upon hire.
• Employers may provide 32 hours of additional paid leave instead of unpaid leave, but only if that leave is immediately available for use on the employee’s first day of employment and on the first day of each calendar year.
• Unused hours from the immediately available unpaid bank do not need to be carried over from year to year, although carryover rules for accrued paid safe/sick time remain in place.
• Employees may use protected time off to care for a minor child or “care recipient” in a wider range of circumstances, including school holidays, day care closures, and last-minute babysitter cancellations, so long as the use otherwise qualifies under ESSTA.
• The FAQs clarify that unpaid sick leave may generally be taken in the same increments as paid sick leave, including an initial increment of up to four hours (if reasonable in the circumstances) and 30-minute or smaller increments thereafter.

Updated Notice of Employee Rights and Documentation Requirements

Employers must provide the updated Notice of Employee Rights—in employees’ primary languages where available—to all NYC employees by March 24, 2026, to new hires upon employment, and whenever employee rights change. Employers must also post the notice in the workplace in an area that is visible and accessible to employees in English and in any other languages employees in that workplace speak. For more see here.

Enforcement Focus and “Data-Driven” Strategy

The updated FAQs are accompanied by a notable shift in DCWP’s enforcement approach. DCWP has issued “compliance warnings” to tens of thousands of NYC employers and announced a new data-driven enforcement strategy, under which the agency will compare an employer’s paid sick leave usage rates to national data from the National Health Interview Survey. According to the guidance, unusually low use of sick time may be treated as indicia of potential noncompliance and could trigger further inquiry, even in the absence of employee complaints.

Employers found to be in violation of ESSTA may face monetary penalties, including per-violation fines and penalties for failure to provide the required Notice of Employee Rights, as well as make-whole relief for affected employees.

Action Items for Employers

In light of the FAQs and the City’s enforcement focus, NYC employers should consider the following steps:

1. Update sick and safe leave policies to incorporate the new 32-hour unpaid leave bank, clarify eligibility and covered uses, and align increments of use and documentation requirements with the FAQs.
2. Confirm system capabilities to track both paid and unpaid ESSTA leave, including the immediate 32-hour banks, and to reflect usage and balances on wage statements or equivalent written documentation each pay period.
3. Distribute the updated Notice of Employee Rights to all current NYC employees and ensure that the revised notice is incorporated into onboarding for new hires.
4. Train managers and HR personnel on expanded covered uses, especially the broader family care and “care recipient” situations, and on the prohibition against interfering with or discouraging leave use.
5. Review attendance, discipline, and performance policies to ensure they do not penalize protected leave use, which could be scrutinized under DCWP’s data-driven enforcement approach.
6. Evaluate whether to provide paid time in lieu of the unpaid bank, particularly for employers that already offer generous paid leave benefits and want to streamline administration.

Authors:

Siobhan Healy
Partner

Sasha Robins
Of Counsel

Keith J. Gutstein
Chair of the Labor & Employment Law Practice Group
Co-Managing Partner of KD’s Woodbury, NY Office