New York City’s Department of Consumer and Worker Protection (DCWP) has adopted final rules under the Earned Safe and Sick Time Act (ESSTA) that take effect July 23, 2026. The final rules follow significant ESSTA amendments that became effective in February 2026, including expanded permitted uses of leave, a new requirement to provide employees with 32 hours of immediately available protected time off, and the incorporation of paid prenatal leave protections into New York City’s local leave law. The rules primarily focus on how employers must administer and comply with those changes.
Rules Introduce New “Protected Time Off” Terminology
The final rules adopt the term “protected time off” and clarify that it carries the same meaning as ESSTA’s existing “safe/sick time” provisions. DCWP explains that protected time off includes both paid and unpaid leave that employees may use for authorized ESSTA purposes.
Rules Incorporate Expanded Leave Uses
The rules formally incorporate the additional protected leave purposes added by Local Law 145, including leave used to:
- Care for a child or care recipient;
- Attend legal proceedings or address matters involving housing or subsistence benefits;
- Respond to a public disaster; and
- Address issues related to workplace violence.
Guidance Issued on the New 32-Hour Leave Requirement
The rules provide extensive guidance regarding the new requirement that employees receive 32 hours of immediately available protected time off at the start of employment and at the beginning of each calendar year.
Among other clarifications, the rules:
- Confirm that employers may satisfy some or all of this requirement through paid leave;
- Define “immediately available hours” for administrative purposes;
- Address employer obligations when employees are rehired during the same calendar year; and
- Clarify how employers should administer this leave entitlement alongside existing ESSTA leave banks.
Rules Clarify Administration of Multiple Leave Banks
The final rules provide guidance regarding situations in which employees have access to multiple categories of leave, including accrued paid leave, unpaid immediately available leave, and paid prenatal leave.
The rules address how employers should administer these various leave banks and clarify the interaction between paid and unpaid protected time off when employees have more than one category of available leave.
Expanded Leave Balance Notification Requirements
The rules expand employer notification obligations regarding leave balances.
In addition to addressing information that must be provided during employment, the rules require employers using electronic systems to either:
- Continue providing separated employees with access to leave information for a specified period; or
- Provide a written statement containing required leave balance information after separation.
Clarification of Prenatal Leave Penalties and Remedies
The final rules also address New York City’s paid prenatal leave requirements.
The regulations remove references to remedies previously contained in New York Labor Law and instead clarify the employee relief, enforcement standards, and civil penalties that may apply under the New York City Administrative Code when employers fail to provide required paid prenatal leave. The rules further explain the types of evidence DCWP may consider when determining whether an employer maintains a policy or practice of denying paid prenatal leave.
Employers Impacted
The Earned Safe and Sick Time Act and these final rules apply broadly to virtually all private employers with employees working in New York City, regardless of where the employer is headquartered. The rules particularly affect employers that:
- Provide ESSTA leave through accrual or frontloading methods;
- Maintain multiple leave banks;
- Use electronic payroll or leave-tracking systems; or
- Must comply with New York City’s paid prenatal leave requirements.
Employer Takeaway
Although the major ESSTA amendments became effective earlier in February 2026, the final rules provide important implementation guidance for employers. Employers should review leave policies, leave-tracking systems, employee notices, and pay statement practices to ensure compliance with the City’s interpretation of the law, particularly regarding administration of the new 32-hour leave bank, leave balance disclosures, and paid prenatal leave obligations.