NYC's protected time off law final rules: what employers must do now

In 2025, New York City passed a new law called Local Law 145. It changed an older law called the Earned Safe and Sick Time Act, which the city now calls the Protected Time Off Law. The law's biggest change started on February 22, 2026, the day workers got 32 new hours of unpaid time off. Workers can use these hours right away, starting on their first day of work, and they get 32 more hours every new year. The law also added 20 hours of paid time off before having a baby, plus new reasons workers can use their time off. Most large employers already updated their rules for this February deadline.

The July 23 final rules, adopted by the NYC Department of Consumer and Worker Protection (DCWP), don't add any new time off. Instead, they explain how the February rules should work: which bank of hours to use first, what must show up on a pay stub, how long you must keep records, and what happens to a worker's leave records after the worker leaves the job.

1. Pay stubs now have to show more than a balance

Every pay stub must show two things: how many hours a worker used, and how many hours they have left, each split into paid and unpaid. If a worker uses paid leave before having a baby, that needs its own line too.

Some employers use a computer system for pay stubs. If you do, you have another choice: send workers a message each pay period saying the information is ready to view. But workers must be able to see it from outside work, and this must stay true for as long as they work for you.

2. Keep detailed records for three years

The city says you must keep leave records for three years, but "keep records" doesn't tell the whole story. Your records must show, for each worker:

1. The worker's name, address, phone number, and job dates.
2. Their pay rate, and whether they get overtime pay.
3. How many hours they worked each week.
4. Every time they used leave, and how much they were paid.
5. Their leave balance each pay period, split into paid and unpaid.
6. Any big change to their job.
7. The date you gave them the Notice of Employee Rights, and proof they got it.

Here's the important part: if you don't have these records, the city may assume you did something wrong. Missing records can count as proof that you broke the rule, so good records don't just help you stay organized. They protect you too.

3. A new rule for workers who leave

This rule surprises a lot of employers. Say you use a computer system for pay stubs or leave records. When a worker leaves your company, you must do one of two things: keep giving them access to that system for six months, or send them a written note about their last pay period within one week.

Most companies do the opposite and cut off access the same day a worker leaves. Under the new rule, that's now a problem, unless you have a plan to save or share the leave data first.

4. Paid comes before unpaid, unless the employee says otherwise

Say a worker needs time off, and they have both paid and unpaid hours available. You must use their paid hours first, unless the worker asks to use unpaid hours instead. Once their paid hours run out, their unpaid hours kick in. It's a small rule, but it's the kind of thing your payroll system should handle on its own.

1. Does your policy talk about the 32 hours of unpaid time off? Is it kept separate from paid time off?
2. Does every pay stub show paid and unpaid hours as two separate numbers?
3. Could you show three years of records for any worker, if the city asked?
4. Do you have a plan for leave records when a worker leaves — six months of access, or a written note within a week?
5. Does your system use paid time off first, before unpaid time off?

Frequently asked questions

Does this law cover workers who work from home, outside the city?

Usually, no. The law covers hours a worker works while physically inside New York City, including work-from-home hours. A worker who visits the city once in a while for meetings isn't covered for those visits, and a worker who splits time between the city and other places only earns leave for city hours.

Do part-time workers and new hires get all 32 hours?

Yes. Every worker gets the full 32 hours right away, on their first day of work and on the first day of each new year. It doesn't matter if they work part-time or start mid-year.

We already updated our policy in February. Do we need to do more for July 23?

Probably, yes. February's changes were about what workers get. July's changes are about what you record and show, so check your pay stubs, your records, and your offboarding steps, even if your leave policy hasn't changed.

What actually causes the $500 fine?

The city gives this fine when it finds a pattern of an employer not giving out time off. It's not just one small mistake. If you're missing a written policy and good records, the city may assume you have this pattern, which is why good records matter as much as the leave itself.

Read it straight from the city

This post is based on NYC's official Protected Time Off Law page, the adopted final rule text from the Department of Consumer and Worker Protection, and the department's official FAQ. You can also read the rule summary page on the city's rulemaking site.

Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.