New York HR and Labor Law Changes You Need to Know in 2026

As we enter 2026, businesses across New York State need to stay ahead of employment law changes to remain compliant, protect their teams, and avoid costly penalties. Whether you run a small office, a retail store, or a service business, these updates will affect how you classify workers, pay wages, and manage HR.

Here’s what every business should know — and how to prepare.

1. Minimum Wage Continues to Rise

On January 1, 2026, New York State’s minimum wage will increase to $16/hr as part of a multi-year plan.  More employees earning higher wages impacts payroll budgets, job costing, and financial planning. Businesses can prepare by reviewing pay scales, adjusting budgets, and communicating changes to staff.

2. Overtime Exemption Thresholds Increase

Starting January 1, 2026, the salary thresholds for exempt employees will increase to $1,199.10/week (~$62,353/year)

If you have salaried employees near these levels, reassess whether they should receive overtime. Misclassification risks lead to wage-and-hour claims, so staying proactive is key.

3. Other Compliance Areas to Monitor

Ensure required employee postings are current

Review worker classification to avoid misclassification penalties

Stay current on payroll and reporting requirements

Proactive attention to compliance helps prevent fines, audits, and legal headaches.

How This Affects Your Business

Navigating HR and labor law changes can feel overwhelming, especially for small and medium-sized businesses. Staying up-to-date ensures compliance, protects your team, and avoids disruptions.

Finger Lakes Work Place supports businesses across industries to stay current with HR and labor law changes, update HR processes, and implement systems that keep operations smooth and compliant throughout the year.

Have questions? Drop me a line at aaron@flworkplace.com, call us at 607-385-0416, or grab a spot on my calendar to discuss.