After some delay, an agreement has been reached on the New York Fiscal Year 2026 Budget. The budget introduces some changes that will impact employers across the state, particularly those employing minors or navigating wage and discrimination claims.
Below are some highlights from budget that may be of significance to employer.
- Digitization of Youth Working Papers: New York is modernizing the employment process for minors with a new online system that serves as a centralized portal for young workers, caregivers, employers, and school administrators. This system will streamline the issuance and management of employment certificates for minors, which will now be maintained electronically within a secure database. This will not take effect immediately; instead, there is a two-year implementation period, allowing employers time to adapt to the new requirements. Once available, employers will need to register with the department of labor, certify compliance, and keep employment certificates accessible within the new database.
- Increased Penalties for Child Labor Violations: The Budget also includes legislation raising the maximum civil penalties and includes felony-level charges for violations that result in serious injury to minors, including higher fines, steeper penalties for injuries, criminal penalties and new felony offenses of “Criminally Negligent Homicide of a Child Worker” and “Endangering the Welfare of a Child Worker.”
- Expanded Wage Theft Enforcement: The Department of Labor (DOL) now has expanded powers to address wage theft, including increases in liquidated damages and penalties for late wage payments, even if made on time. The state has also amended the Labor Law to limit damages in “frequency-of-pay” claims under Section 191, which primarily affects employers of manual workers. The amendment, which applies retroactively to pending cases, introduces a tiered damages structure and offers relief to employers who have made good-faith efforts to comply with weekly pay requirements.
- Bolstering the State’s Ability to Eliminate Discrimination: The budget increases funding and staffing for the Division of Human Rights (DHR) to better address discrimination complaints and establishes a discrimination complaints escrow fund to hold settlement funds and awards for complainants.
- Minimum Wage Increase for Human Services Staff: The budget includes a 2.1 percent minimum wage increase for staff at programs licensed or authorized by the Office of People with Developmental Disabilities (OPWDD), the Office of Mental Health (OMH), and the Office of Addiction Services and Support (OASAS).
Next Steps for Employers
Employers are encouraged to review the full details of the Fiscal Year 2026 Budget as there may be additional items that are of interest based on industry. Where applicable, employers should be prepared to update their policies and practices to ensure compliance with the new regulations.
More information is expected to be available on each of these measures in the upcoming weeks. Employers should also consult with legal counsel on the implications of these legislative changes and ensure compliance as needed.
