New York Paid Sick Leave: Employer Rules on Usage Increments and Accrual

What Changed

New York's Paid Sick Leave Law (Labor Law Section 196-b), which took effect September 30, 2020, establishes statewide requirements for how employers must provide and administer paid sick leave. A key compliance point that continues to generate employer questions concerns usage increments: employees must be permitted to use accrued sick leave by the hour, and employers may not set a minimum usage increment greater than four hours.

Employees accrue sick leave at a rate of one hour for every 30 hours worked. The total annual entitlement depends on employer size:

• 0-4 employees, net income ≤ $1 million: Up to 40 hours of unpaid sick leave

• 0-4 employees, net income > $1 million: Up to 40 hours of paid sick leave

• 5-99 employees: Up to 40 hours of paid sick leave

• 100+ employees: Up to 56 hours of paid sick leave

Employers may frontload the full annual entitlement at the beginning of the calendar year instead of tracking accrual, but may not reduce the total hours available or impose a waiting period before usage.

Who Is Affected

All private-sector employers in New York State, regardless of size or industry. The law covers all employees, including full-time, part-time, and temporary workers. There is no minimum tenure requirement — employees begin accruing sick leave from their first day of employment, though employers may require employees to wait until their 120th calendar day of employment before using accrued leave.

Employers in New York City should note that the NYC Earned Safe and Sick Time Act may impose additional requirements, including broader covered uses and, beginning in 2025, 20 hours of paid prenatal personal leave usable in one-hour increments.

Where It Applies

New York State, statewide. The state law sets a floor; local jurisdictions — most notably New York City and Westchester County — have their own sick leave ordinances that may provide greater protections. Where local law is more generous, the local law controls.

When It Takes Effect

The New York Paid Sick Leave Law has been in effect since September 30, 2020. The accrual and usage increment rules are ongoing compliance obligations — there is no upcoming deadline, but employers should treat this as a standing audit item.

For NYC employers, the prenatal personal leave addition took effect January 1, 2025.

Why It Matters

The usage increment rule is one of the most commonly misunderstood provisions of New York's sick leave law. Employers who require employees to use sick leave in full-day blocks — or who set minimum increments above four hours — are out of compliance. This is particularly relevant for non-exempt employees whose schedules may not align neatly with eight-hour days.

Non-compliance can result in penalties under the New York Labor Law, including back pay, liquidated damages, and civil penalties. The New York Department of Labor investigates complaints and can initiate enforcement actions.

Beyond the legal risk, administering sick leave incorrectly erodes employee trust and can create downstream payroll headaches when corrections are required.

The Humareso Take

We see this one trip up employers more often than you would expect. The instinct to manage sick leave in full-day blocks makes operational sense, but New York's law is clear: hourly increments are the rule, with four hours as the maximum minimum you can set. If your time-tracking system or handbook still references "sick days" instead of "sick hours," that is a red flag worth addressing now. This is also a good moment to confirm your accrual calculations are correct — one hour per 30 hours worked is straightforward in theory, but messy in practice for variable-schedule employees.

Recommended Action Steps

1. Audit your sick leave policy to confirm it permits usage in increments of four hours or less, and that it does not require employees to use a full day at a time.

2. Review your time-tracking and payroll systems to ensure they correctly calculate accrual at one hour per 30 hours worked and enforce the appropriate annual cap (40 or 56 hours based on employer size).

3. Update your employee handbook to replace any references to "sick days" with language reflecting hourly accrual and usage, consistent with Labor Law Section 196-b.

4. Train managers and supervisors on the increment rules so they do not inadvertently deny partial-day sick leave requests.

5. If you operate in New York City, confirm compliance with the NYC Earned Safe and Sick Time Act, including the 2025 prenatal personal leave requirement.

6. Contact your Humareso representative for a review of your sick leave policies and time-tracking configuration to ensure full compliance.