NYC Finalizes Rules Expanding Protected Time Off Obligations

The New York City Department of Consumer and Worker Protection (DCWP) has adopted final rules implementing recent amendments to the Earned Safe and Sick Time Act (ESSTA), which DCWP now refers to as the city’s “Protected Time Off” Law. The statutory amendments, enacted through Local Law 145 of 2025, took effect on February 22, 2026, and the final DCWP rules take effect on July 23, 2026. Among other changes, Local Law 145 of 2025, formerly Int. No. 780-A, expanded the reasons employees may use protected time off, added a new 32-hour bank of unpaid protected time off available upon hire and at the start of each calendar year, and incorporated paid prenatal leave requirements into the New York City Administrative Code.

For additional background on Local Law 145 and the underlying statutory changes, refer to our prior post.

Key Changes for Employers

• Expanded Reasons for Protected Time Off. Employees may now use protected time off for additional reasons, including caring for a child or care recipient, attending or preparing for legal proceedings or hearings related to public benefits or housing, responding to a public disaster, or taking safety measures related to workplace violence.

• Additional 32 Hours of Immediately Available Time. Employers must provide employees with 32 hours of unpaid protected time off that is immediately available on the first day of employment and on the first day of each calendar year. The final rules clarify that employers may satisfy this obligation by providing some or all 32 hours as paid protected time off.

• Paid Leave May Be Required in Certain Circumstances. DCWP clarifies that employers should provide paid protected time off when necessary to comply with other legal obligations or to meet requirements for an overtime exemption under state or federal law, such as the Fair Labor Standards Act salary basis test. Employers that decide to provide the 32 hours as paid leave must still satisfy any separate obligation to provide paid protected time off under ESSTA.

• Using Paid vs. Unpaid Leave Banks. When an employee has both paid and unpaid protected time off available, the employer must apply paid protected time off to cover the absence unless the employee asks to draw from the unpaid bank instead. If the employee does not have enough accrued paid protected time off, the employer must provide unpaid protected time off from the immediately available bank.

• Rehire Obligations. If an employee is rehired within the same calendar year, the employer must reinstate any unused protected time off from the employee’s 32-hour bank, along with any accrued protected time off that must be reinstated under the law.

• Written Policy Updates. Employers must include their protected time off and paid prenatal leave policies in one written policy or policy document. The policy must address, among other items, how protected time off is calculated, whether the employer frontloads or uses accrual, the amount of unpaid protected time off provided under the 32-hour requirement, the separate paid prenatal leave bank, notice and documentation requirements, confidentiality, carryover, and any alternative terminology used by the employer, such as PTO, vacation, personal days, or days of rest.

• Pay Statement and Electronic System Requirements. Pay statements or other written documentation must differentiate between paid and unpaid protected time off and show accrual, use, and available balances. If an employer uses an electronic system, the final rules require employees to have access to required information outside the workplace, and upon separation, the employer must either continue access for six months or provide a written statement with the required information within one week after the employee’s last payday.

• Paid Prenatal Leave Clarifications. Employers covered by the NYC law must provide a separate bank of up to 20 hours of paid prenatal leave during any 52-week calendar period, regardless of employer size. The final rules clarify that employers may not require an employee to use other leave instead of paid prenatal leave, exhaust other leave before using paid prenatal leave, or disclose the employee’s medical condition or the nature of the health care services as a condition of providing paid prenatal leave.

Recommended Next Steps for Employers

Employers with employees working in New York City should:

• Update Leave and Attendance Policies. Review and update leave policies to reflect the new “protected time off” terminology, expanded permissible uses, the separate 32-hour immediately available bank, and paid prenatal leave requirements. Assess attendance and discipline policies to confirm protected time off and paid prenatal leave are not improperly counted under absence control policies.
• Confirm Tracking Capabilities. Confirm payroll and HRIS tracking capabilities to ensure paid and unpaid protected time off are tracked separately and reflected accurately on pay statements or other written documentation.
• Evaluate Frontloading Practices. Determine whether existing PTO or sick leave policies satisfy the new immediately available leave obligation.
• Train Staff. Train managers and HR personnel on expanded covered reasons, documentation limitations, confidentiality requirements, and the rule that paid protected time off should generally be applied first unless the employee requests otherwise.
• Review Rehire Practices. Review rehire procedures to ensure unused immediately available hours are reinstated when required.

How HR Works Can Help

HR Works will continue to monitor developments related to NYC’s Protected Time Off requirements. Current clients may contact their designated HR Consultant for assistance reviewing and updating related handbook policies.

Not an HR Works client? To learn more about how HR Works can help, contact us by visiting our website and completing a “Contact Us” form or calling us toll-free at 1-877-219-9062.