New York City Publishes Final Rules Related to the Earned Safe and Sick Time Act

On June 23, 2026, the New York City Department of Consumer and Worker Protection (DCWP) issued final rules implementing recent amendments to New York City’s Earned Sick and Safe Time Act (ESSTA).

The final rules largely incorporate the rules proposed earlier this year, with a few key changes employers should be aware of before the rules take effect on July 23, 2026.

A Quick Refresher

As discussed in our prior Insight earlier this year, the DCWP proposed new rules and issued revised FAQs in response to the City’s recent amendments to the ESSTA that:

• relabeled “safe/sick leave” as “protected time off”;
• granted an additional 32 hours of unpaid leave to new hires upon hire, and to existing employees on the first day of each calendar year, that are immediately available for use;
• expanded the reasons available for use for paid and unpaid protected time off; and
• mirrored New York State’s requirement that employers provide eligible employees with at least 20 hours of paid prenatal leave.

The amendments also removed NYC employers’ obligation to grant up to two employee requests for temporary changes to their schedules under the City’s Temporary Schedule Change Law, as we explain in more detail here.

New Paystub Obligations

One of the most significant revisions from the proposed rules to the final rules is the expansion of employer paystub obligations. The final rules require employers to provide the following on employee paystubs:

• the amount of protected time off accrued during the relevant pay period;
• the amount of protected time off used, differentiating between paid and unpaid time off (if applicable), during the relevant pay period;
• the amount of paid prenatal leave used during the relevant pay period;
• the total balance of accrued protected time off and paid prenatal leave; and
• the amount of protected time off available for use, differentiating between paid and unpaid protected time off (if applicable).

Many employers use an electronic system for compliance, rather than printing this information on a physical paystub. In response to a public comment about an employee’s inability to access such a system post-employment, the DCWP added a new provision to the final rules for employers using an electronic system to inform employees of protected time off accrual, usage, and balance information. Employers using electronic systems must either: (i) provide separated employees access to their electronic paystub system systems for six months after their employment ends, or (ii) provide separated employees with a written statement containing the required information for the employees’ last pay period no later than one week after the employees’ last pay day.

Employees Paid for Unpaid Time Off

In response to commentary around the impact of unpaid time in partial day increments for FLSA-exempt employees, the final rules also clarify that employers must provide paid protected time, in lieu of unpaid protected time, if necessary to comply with another legal obligation or satisfy an overtime exemption under federal or state law. In practice, this means if an exempt employee takes a partial day off for a protected reason, the employer must pay the employee for that time, even if the employee is technically using "unpaid protected time off."  

Even if not obligated to provide paid leave under another law, the final rules also explain that employers may meet their obligation to provide 32 hours of immediately available unpaid protected time off by providing some or all as paid leave.

Anything Else?

Finally, the final rules also clarify that employers must reinstate an employee’s unused portion of immediately available unpaid time off if an employee is separated and rehired within the same year.  Employers were already previously required to reinstate an employee’s paid portion of protected time off under the same circumstances.

What New York City Employers Should Do Now

• If using electronic paystubs systems, work with counsel and internal teams to ensure separating employees are either provided access to electronic paystub systems for six months following termination or a written statement within one week of separation
• Ensure exempt employees are properly paid for protected time off when using unpaid protected time off
• Remind employees and managers that employees cannot be required or permitted to work when using protected time off
• Be on the lookout for any further guidance

* Alexis Klein, a Summer Associate–not admitted to practice–in Epstein Becker Green’s New York office, contributed to this update.