New York Farm Workers: 2026 Overtime Threshold and Tax Relief Updates 

For New York agricultural employers, the path toward a 40-hour workweek continues on January 1, 2026. 

As part of the gradual phase-down initiated by the Farm Laborers Fair Labor Practices Act, the overtime threshold for farm workers will decrease from its current level of 56 hours to 52 hours per week at the start of the new year. This change is part of a multi-year schedule designed to align agricultural overtime standards with other industries by 2032. 

To support farm employers through this transition, New York State has implemented significant tax credits to offset increased labor costs. Below are a breakdown of the upcoming changes and the financial resources available to your organization. 

The New Overtime Phase-In Schedule 

Effective January 1, 2026, non-exempt farm workers must be paid 1.5 times their regular rate of pay for any hours worked in excess of 52 hours in a calendar week. 

This threshold will continue to decrease by four hours every two years until it reaches the standard 40-hour workweek. 

Essential Tax Credits for Farm Employers 

Recognizing the financial impact of these changes, the Governor and Legislature have authorized three specific tax credits. It is critical that employers understand how to calculate and claim these to mitigate rising payroll expenses. 

1. The Investment Tax Credit increased from 4 percent to 20 percent for farm businesses, providing encouragement for potential automation of farm production. 
2. The Farm Workforce Retention Tax Credit was increased to $1,200 per employee to provide near-term relief to farmers. 
3. A new refundable overtime tax credit was established for overtime hours paid by farm employers at the level established by the Board and confirmed by the Commissioner for up to 60 hours. 

As a reminder, a farm employer means any individual, partnership, association, corporation, cooperative, business trust, legal representative or organized group of persons acting as an employer of an individual engaged or permitted to work on a farm. 

Next Steps for Employers 

As the effective date approaches, we recommend taking the following proactive measures: 

• Update Payroll Parameters: Ensure your payroll software or provider is programmed to trigger overtime calculations at 52 hours starting January 1. Failure to update this parameter is a common cause of compliance errors. 
• Review Staffing Models: Analyze your current scheduling. With the threshold dropping to 52 hours, assessing whether hiring additional part-time staff to reduce overtime hours is more cost-effective than paying the premium, even with the available tax credits. 
• Prepare for Advance Payments: If cash flow is a priority, mark your calendar to apply for the Farm Employer Overtime Credit advance payment. The application window typically closes on September 30 for overtime paid in the first half of the year. 
• Consult Your Tax Advisor: Seek professional tax guidance regarding the applicable tax credits.