Ask an HR manager in New York what keeps them up at night and paid leave compliance is usually near the top of the list. New York doesn't have one paid leave law — it has several, stacked on top of each other, with New York City adding its own layer on top of the state. Getting it right requires understanding all of them.
This guide untangles the major New York paid leave laws for 2026, explains what employees are actually entitled to, and clarifies the rules around PTO payout when leaving a job.
New York PTO Law — Quick Reference
The Basics: New York Is Not California
The first thing to understand about New York PTO law is what it doesn't require. Unlike California, New York has no statute that automatically treats accrued vacation time as earned wages. There's no general state law mandating PTO payout at termination, and use-it-or-lose-it policies are legal.
What New York does require is honesty and consistency. Under New York Labor Law Section 195, employers must notify employees in writing of their PTO policies, including what happens to unused time when an employee leaves. If your employer's written policy says accrued PTO will be paid out, they must honor it. The policy governs — which means the policy document you were given at hire matters a lot.
The NY Paid Sick and Safe Time (PSST) Act
New York's Paid Sick and Safe Time Act took effect September 30, 2020. It created statewide mandatory paid sick leave for the first time in New York history. Here's how it breaks down by employer size:
| Employer Size | Sick Leave Entitlement | Paid or Unpaid? |
|---|---|---|
| 100+ employees | 56 hours per year | Paid |
| 11–99 employees | 56 hours per year | Paid |
| 5–10 employees (net income $1M+) | 40 hours per year | Paid |
| 4 or fewer employees (net income $1M+) | 40 hours paid + 40 hours unpaid | Mixed |
| 4 or fewer employees (net income under $1M) | 40 hours unpaid | Unpaid |
The law covers a broad range of uses: employee or family member illness, mental health care, domestic violence situations, and more. Employers cannot retaliate against employees for using PSST leave, and they cannot require employees to find a replacement or disclose medical details beyond a general reason.
PSST Rollover Rules
Unused PSST leave carries over from year to year, up to the applicable annual cap. However — and this is a common point of confusion — employers do not have to allow employees to use more than their annual cap each year, even if they've rolled over a balance. Rolled-over hours can be used the following year only up to the annual usage cap.
New York City's Separate Rules
If you work in New York City, you have additional protections under the NYC Earned Safe and Sick Time Act. NYC's law predates the state law (it's been in effect since 2014) and in several ways is more generous:
- Small employers (5–99 employees): 40 hours of paid sick leave per year
- Large employers (100+ employees): 56 hours of paid sick leave per year
- Very small employers (4 or fewer employees, any income): 40 hours paid sick leave (unlike the state law, NYC doesn't have the $1M income threshold)
When NYC rules and state rules differ, employees get whichever benefit is more generous. Employers don't have to provide both separately — they just have to meet the higher standard.
New York State Paid Family Leave (NY PFL)
Separate from sick leave, New York has one of the most robust paid family leave programs in the country. In 2026, eligible employees can take up to 12 weeks of paid leave for qualifying reasons at 67% of the statewide average weekly wage (AWW), capped at 67% of the AWW.
NY PFL covers:
- Bonding with a newly born, adopted, or fostered child
- Caring for a family member with a serious health condition
- Qualifying exigencies arising from a family member's military deployment
NY PFL is funded through small employee payroll deductions — employers don't pay for it directly. In 2026, the employee contribution rate is 0.388% of gross wages, up to the statewide AWW cap. Most employees barely notice it in their paycheck.
PTO Payout When Leaving a New York Job
As noted above, there's no New York law requiring employers to pay out unused vacation at termination. Whether you get paid for banked PTO depends entirely on what your employer's written policy says.
If the policy is silent or ambiguous, the New York Department of Labor generally interprets ambiguity in the employee's favor — but "generally" isn't a guarantee. The safest position: know your policy before you give notice.
For Employers: Navigating Multi-Law Complexity
If you employ people in New York — especially New York City — you're operating under at least three overlapping legal frameworks simultaneously: state labor law, the NY PSST Act, and (if applicable) NYC's ESST Act, plus NY PFL. Add federal FMLA for employers with 50+ employees and the complexity compounds quickly.
Common compliance pitfalls for New York employers:
- Not updating written policies to reflect what actually happens at termination — ambiguous policies create liability
- Failing to track PSST accrual separately from vacation PTO in payroll systems
- Applying the state PSST rules to NYC employees when NYC's rules are more generous
- Not providing required written notices to employees about their sick leave rights
- Mishandling concurrent NY PFL and FMLA leave tracking
HR software with New York-specific compliance modules — including Gusto, Rippling, and BambooHR — can automate much of this tracking and reduce the risk of inadvertent violations.
Know Exactly Where Your PTO Stands
Project your balance through any date, track sick leave separately, and never lose track of what you've earned.
Open the PTO Calculator →Frequently Asked Questions
Does New York require employers to pay out unused vacation when I quit?
Not by default. New York has no law that automatically requires vacation payout at termination. Your entitlement depends on your employer's written PTO policy. If the policy promises payout, the employer must honor it. If it says vacation is forfeited at termination, that's generally enforceable in New York.
How much sick leave am I entitled to in New York?
If your employer has 11 or more employees, you're entitled to 56 hours of paid sick leave per year under the NY PSST Act. If your employer has 5–10 employees (and net income over $1 million), you get 40 hours paid. For very small employers with under 5 employees and income under $1 million, sick leave is unpaid. If you work in NYC, the NYC ESST Act may provide additional or equal benefits — you get whichever is more generous.
Can my New York employer have a use-it-or-lose-it vacation policy?
Yes. Unlike California, New York permits use-it-or-lose-it vacation policies. The employer must clearly state this in the written PTO policy and apply it consistently. Sick leave under the PSST Act, however, must carry over year to year up to the applicable cap.
What is the New York statewide average weekly wage in 2026?
The NY AWW is updated annually by the Department of Labor each July 1. For the 2025–2026 PFL benefit year, the maximum weekly PFL benefit is $1,177.32 (67% of the AWW of $1,757.19). Check nypfl.org for the most current figure as it updates each year.
Does NYC sick leave apply to remote workers based outside NYC?
NYC's ESST Act generally applies to employees who work in NYC, meaning those who physically perform work within the five boroughs. Remote workers based outside NYC but working for a NYC employer are typically covered by state law rather than the city ordinance, but this depends on where the work is actually performed.
Can my employer require a doctor's note for sick leave in New York?
Employers may request documentation for sick leave absences of more than three consecutive days. They cannot require documentation for shorter absences. Documentation requests must not impose an unreasonable burden or cost on the employee.