New York State paid sick leave rules for employers
Reviewed Sep 27, 2026 5 official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
The answer
Yes; the amount depends on employer size
New York State employees accrue sick leave at no less than 1 hour per 30 hours worked. Employers with 100 or more employees provide up to 56 paid hours per calendar year; 5 to 99 employees, up to 40 paid hours; 4 or fewer, up to 40 hours that are paid only if net income in the previous tax year was over $1 million (Labor Law 196-b). (New York State, Paid Sick Leave (ny.gov))
“Employers with 4 or fewer employees and net income is $1 million or less in the previous tax year are required to provide up to 40 hours of unpaid sick leave per calendar year.”
What it means for New York employers
New York is the state where the employer's size and profit decide what kind of leave it owes, so the first job is to place the business in one of four boxes. Headcount uses the calendar year, January 1 to December 31, and counts every employee across all New York locations: a company with 3 people at one store and 4 at another has 7 employees and owes 40 paid hours, not unpaid leave. (New York State, Paid Sick Leave (ny.gov))
The $1 million test only matters for employers with 0 to 4 employees, and it looks at net income in the previous tax year. The state FAQ gives the example of a three-person business with just over $1 million in net income: it owes paid leave. At $1 million or less, the same business still owes up to 40 hours of leave, but unpaid. (New York State, Paid Sick Leave (ny.gov))
Leave is paid at the employee's normal rate, never at an overtime rate even if the missed hours would have been overtime. Employers cannot take a tip credit on sick leave hours: hospitality employers that normally pay a tipped cash wage pay the normal rate or the applicable minimum wage, whichever is higher, though lost tips are not owed. (New York State, Paid Sick Leave (ny.gov))
Increments are capped in the employee's favor. The largest block an employer may require is four hours, so an employee can take a half day, and a policy may allow smaller blocks. (New York State, Paid Sick Leave (ny.gov))
Exceptions and special cases
- Coverage reaches all private-sector employees regardless of industry, occupation, part-time status or overtime-exempt status, and nonprofits are not exempt. Telecommuters are covered only for hours physically worked in New York State, even when the employer is based elsewhere. (New York State, Paid Sick Leave (ny.gov))
- For accrual and use, an employer may define its year as any 12-month period; the January to December calendar year is required only for counting employees. (New York State, Paid Sick Leave (ny.gov))
- Front-loading less than 40 hours to part-timers is allowed, but accrual then continues until front-loaded plus accrued hours reach 40 in the year, and up to 40 unused hours must be carried over. (New York State, Paid Sick Leave (ny.gov))
- At the end of employment, the state law does not require payment for unused sick leave, unless another agreement or the employer's own written policy does. Seasonal employees who keep an ongoing relationship with the employer keep their balances across the break. (New York State, Paid Sick Leave (ny.gov))
- Collective bargaining agreements entered into on or after September 30, 2020 may provide different terms, and Westchester County has separate rules for domestic workers. (New York State, Paid Sick Leave (ny.gov))
Worked examples
A two-location bakery
Three employees work in Albany and three in Troy. Counted together that is 6 employees, which puts the business in the 5 to 99 tier: up to 40 hours of paid sick leave per calendar year for each employee. (New York State, Paid Sick Leave (ny.gov))
A four-person consultancy with $1.2 million in net income
The consultancy is in the 0 to 4 tier, but its previous tax year net income was above $1 million, so its employees get up to 40 hours of paid leave, not unpaid. (New York State, Paid Sick Leave (ny.gov))
A 120-employee warehouse, full-time picker
At 40 hours a week, the picker earns 1 hour every 30 hours worked, about 1.33 hours a week. The 56-hour yearly entitlement for a 100-plus employer is reached after 1,680 hours worked, which is 42 weeks. (New York State, Paid Sick Leave (ny.gov))
How to act on it
Paid sick leave: New York and neighboring states
Each state links to its rulebook. Only rules we verified are shown.
| State | Statewide paid sick leave |
|---|---|
| New York | Yes, statewide |
| New Jersey | Yes, statewide (full page) |
| Connecticut | Yes, statewide (full page) |
| Pennsylvania | No statewide law |
| Vermont | Yes, statewide |
| Massachusetts | Yes, statewide |
Questions about New York paid sick leave rules
How many sick days does New York State require?
Up to 56 paid hours per calendar year at 100 or more employees, up to 40 paid hours at 5 to 99, and up to 40 hours at 4 or fewer, paid only if previous-year net income exceeded $1 million.
When did New York paid sick leave begin?
Employees began accruing leave on September 30, 2020; the state FAQ says use of accrued leave could begin January 1, 2021.
Can a New York employer require sick leave in full-day blocks?
No. The largest increment an employer may set is four hours; smaller increments may be allowed.
Do tipped employees get the tipped wage on sick days in New York?
No. The employer cannot take a tip credit for sick leave and pays the normal rate or the applicable minimum wage, whichever is greater. Lost tips are not owed.
Is unused sick leave paid out when a New York employee leaves?
The state law does not require it, unless another agreement or the employer's written policy provides for payout.
The verified rules behind this page (6)
- Accrual: New York State paid sick leave: leave accrues at a rate of not less than one hour for every 30 hours worked (employers may instead front-load the annual amount). (New York State, Paid Sick Leave (ny.gov); verified Sep 24, 2026)
- Annual cap large employer: Employers with 100 or more employees must provide up to 56 hours of paid sick leave per calendar year. (New York State, Paid Sick Leave (ny.gov); verified Sep 24, 2026)
- Annual cap midsize employer: Employers with 5 to 99 employees must provide up to 40 hours of paid sick leave per calendar year. (New York State, Paid Sick Leave (ny.gov); verified Sep 24, 2026)
- Annual cap small employer: Employers with 4 or fewer employees must provide up to 40 hours of sick leave per calendar year: paid if net income in the previous tax year was greater than $1 million, otherwise unpaid. (New York State, Paid Sick Leave (ny.gov); verified Sep 24, 2026)
- Effective date: Employees began accruing New York sick leave on September 30, 2020. (New York State, Paid Sick Leave (ny.gov); verified Sep 24, 2026)
- When employment ends by termination, the final wages are due no later than the regular payday on which they would have been paid; on request the employer must mail them. (New York State Department of Labor, Wages and Hours Frequently Asked Questions; verified Sep 27, 2026)
Sources (5)
Checked Sep 27, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error