During New York City Mayor Zohran Mamdani’s inaugural address and press conferences, he has often discussed his worker-centric agenda. While the Mamdani Administration’s initial focus will be on the gig economy, such as app-based delivery workers, and contractor rights, all employers should be prepared for more labor and employment enforcement.
These are some areas I believe the Mamdani Administration will prioritize:
- Restrictive Covenants & Non-Competes: Mayor Mamdani has pledged to ban non-compete agreements in New York City. In 2023 and 2024, bills introduced in the NYC Council were not enacted, but I anticipate these legislative efforts will be renewed, particularly with Mayor Mamdani’s support.
- Worker Misclassification: Employers should review worker classifications to confirm they are properly being treated as independent contractors rather than as employees. The NYC Department of Consumer and Worker Protection (DCWP) will lead enforcement in this space, and the Mamdani Administration has plans to increase staffing and funding, including doubling its budget for enforcing worker misclassification and wage theft.
Expanded Safe & Sick Leave Requirements (ESSTA) and Changes to Temporary Schedule Change Act (TSCA): Last year, the ESSTA and TSCA were amended with the changes becoming effective on February 22, 2026. The most significant change to the ESSTA is the new requirement that all employers provide all employees 32 hours of additional unpaid sick and safe time, which is front-loaded and available effective February 22, 2026, or upon hire, whichever is later. Going forward, those 32 hours of front-loaded, additional unpaid sick and safe time will be available at the start of each calendar year (starting January 1, 2027). The 32 hours of unpaid sick and safe time does not carry over to future years. If an employee needs covered leave, it is presumed that the employee will first use available paid leave unless the employee advises otherwise. Under the ESSTA, employers may impose a minimum use increment of up to four hours per day. More burdensome from an administrative standpoint, employers are required to separately report both paid and unpaid balances of ESSTA leave each pay period. This information is often reported on pay statements.
The TSCA has been replaced by the 32 hours of unpaid ESSTA sick and safe leave. Employers no longer will be required to approve two schedule changes each year for “personal reasons” or provide unpaid leave. Rather, employers can approve or deny the request in their discretion or propose alternatives. Employers must respond to a request as soon as practicable. The anti-retaliation protections continue to be effective.
In addition, the bases for covered leave under the ESSTA have been expanded, including to provide care for a minor child or care recipient for whom the employee is a caregiver (defined as “a person with a disability, including a temporary disability, who (i) is the caregiver’s family member or resides in the caregiver’s household and (ii) relies on the caregiver for medical care or to meet the needs of daily living”). Another example of expanded covered leave: Safe time is now available when the employee or the employee’s family member has been a victim of workplace violence.
Employers should review their ESSTA and TSCA policies to ensure they are or will be compliant with these changes.- NYC Human Rights Law Enforcement: The NYC Commission on Human Rights (Commission) will be reinvigorated with new leadership and additional funding and staffing to investigate alleged workplace discrimination and harassment. It is possible the Commission will emphasize areas where the Trump Administration has retreated, such as transgender worker rights. Employers should confirm that their (i) anti-harassment and anti-discrimination policy is compliant and (ii) federal, state, and local posters are up to date. Employers also should examine workplace training calendars to confirm that employees are completing their annual mandatory training. Finally, I believe the Commission will scrutinize salary ranges in job postings, responding to critics who claim employers use ranges that are too broad to be accurate or meaningful.
- Wage and Hour: The NYC minimum wage has increased to $17 per hour effective January 1, 2026. Additionally, on January 1, 2026, the New York Labor Law salary threshold for exempt executive and administrative employees in NYC increased to $1,275 per week ($66,300 annually). Employers should be mindful of Mayor Mamdani’s long-term goal of a $30 minimum wage, currently targeting 2030 for implementation. More importantly, employers should review exempt status determinations.
- Pay Equity & Demographic Reporting: New requirements for employers with 200 or more NYC-based employees to report annual pay and demographic data (race, ethnicity, and gender) will start to be implemented later this year. Currently, these reporting obligations only apply to large employers, but it is likely that these requirements will expand to cover much smaller employers.
Bottom line: Employers should be proactive, conduct internal audits and policy reviews to ensure compliance. Stay tuned!
