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New York City, NY Payroll Rules

Local payroll and employment requirements that differ from or exceed New York state law

Last updated: January 2025

Minimum Wage
$16.00
Paid Sick Leave
1 hour per 30 hours worked
Max: 56 hours
Fair Scheduling
14 days
Advance notice required

Minimum Wage

Current Rate$16.00/hour

All NYC employers regardless of size. Fast food workers: $16.00 (scheduled increases). No tip credit for most workers. Adjusted annually for inflation.

Scheduled Increases

January 1, 2026$16.50/hour

Paid Sick Leave

Accrual Rate
1 hour per 30 hours worked
Maximum Accrual
56 hours
Maximum Annual Use
56 hours per year
Waiting Period
120 days before use

NYC Paid Safe and Sick Leave Law. Employers with 100+ employees must provide 56 hours PAID leave. 5-99 employees: 40 hours paid. Under 5 employees: 40 hours unpaid. Includes safe time for domestic violence.

Fair Scheduling / Predictive Scheduling

Advance Notice Required14 days
Predictability Pay$10-$75 per violation

Fair Workweek Law applies to fast food and retail (500+ employees worldwide). Fast food: 14-day advance notice, premium pay for changes, 11-hour rest period, consent for clopenings. Retail: 72-hour advance notice, on-call restrictions.

Local Taxes

NYC Resident Income Tax3.078% - 3.876%

NYC residents pay city income tax in addition to NYS income tax. Progressive rates: 3.078% up to $12K, 3.762% $12K-$25K, 3.819% $25K-$50K, and 3.876% above $50K. Employers must withhold.

MTA Mobility Tax (Employer)0.34% of payroll

Metropolitan Commuter Transportation Mobility Tax applies to employers in MCTD (NYC + 7 surrounding counties) with quarterly payroll over $312,500. Employer-paid, not withheld from employees.

Yonkers Surcharge16.75% / 0.5%

Yonkers residents pay 16.75% surcharge on their NYS tax. Non-residents working in Yonkers pay 0.5% of wages. Employers must withhold for Yonkers employees.

Unincorporated Business Tax4%

Applies to self-employed individuals and unincorporated businesses with NYC income over $95,000.

NYC Commercial Rent Tax3.9%

Tax on commercial rent in Manhattan south of 96th St (base rent over $250K). Not a payroll tax but affects employer costs.

Additional Local Requirements

Freelance WorkerEffective: 2017

Freelance Isn't Free Act

Written contracts required for work over $800. Payment within 30 days. Right to file complaint with DCWP. Double damages for violations.

Salary HistoryEffective: 2017

Salary History Ban

Cannot ask about salary history during hiring. Must provide pay range upon request. Applies to all employers.

Pay TransparencyEffective: 2022

Pay Transparency Law

Job postings must include minimum and maximum salary or hourly rate. Applies to employers with 4+ employees.

Fair ChanceEffective: 2015

Fair Chance Act

Cannot inquire about criminal history until after conditional offer. Must perform individualized assessment. Provide copy of background check.

Commuter BenefitsEffective: 2016

Commuter Benefits Law

Employers with 20+ full-time employees must offer pre-tax transit and qualified parking benefits.

LactationEffective: 2018

Lactation Room Law

Dedicated lactation room (not bathroom) with chair, surface, electrical outlet, nearby water. Reasonable break time.

Just CauseEffective: 2021

Fast Food Just Cause

Fast food workers can only be terminated for just cause or bona fide economic reasons. Progressive discipline required.

AI HiringEffective: 2023

Automated Employment Decision Tools Law

Employers using AI/automated tools in hiring must conduct annual bias audits, notify candidates, and allow alternative processes.

Official Resources

Important Note

These local rules apply in addition to New York state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.