Update Applicable to:	Effective Date
All Employers Operating in New York	Budget Bill: May 9, 2025   Some provisions (See Details Below): May 9, 2027

What happened?

On May 9, 2025, Governor Kathy Hochul signed into law sweeping amendments to the New York Labor Law (NYLL) as part of the FY26 State Budget.

Overview:

These changes significantly strengthen child labor protections, expand enforcement powers for the New York State Department of Labor (NYSDOL), and modernize the minor employment certification process. Several provisions are effective immediately, while others will take effect in 2027.

Stronger Child Labor Protections

• Civil penalties for violations have increased up to $175,000 for repeat offenses involving serious injury or death.
• Exemptions for newspaper carriers and certain 15-year-olds have been eliminated.
• Employers must certify that minors are employed only in legally permitted roles.

Modernized Minor Employment Certification

• Starting May 9, 2027, NYSDOL will manage a statewide electronic database for minor employment.
• Minors will apply for working papers online.
• Employers must register, certify compliance, and maintain accessible records.

Expanded Enforcement Powers

• NYSDOL now has authority to issue and enforce wage collection warrants, similar to sheriff powers.
• Employees may directly execute wage orders if employers fail to comply.
• A new 15% penalty may be added to unsatisfied wage judgments.

Wage and Hour Enforcement Updates

• Liquidated damages for wage payment timing violations are now limited for first-time offenses.
• Repeat violations remain subject to full penalties.

Unemployment Insurance Reforms

• Striking workers face a reduced benefit suspension period (from two weeks to one).
• Benefit calculations will use updated wage data to increase maximum rates.

Additional Information

Comprehensive Summary of Labor Law Changes in S.3006-C

Part W – Child Labor Penalties (Labor Law §141)

• Civil penalties increased significantly:
  
  • First violation: Up to $10,000
    
  • Second: $2,000–$25,000
    
  • Third/subsequent: $10,000–$55,000
    
  • If serious injury or death occurs:
    
    • First: $3,000–$30,000
    • Second: $6,000–$75,000
    • Third/subsequent: $30,000–$175,000

Part X – Minor Employment Certification Overhaul

• Repeals Labor Law §§135, 137, 139 and Education Law §§3225, 3227, 3228.
• Creates new Labor Law §135:
  • NYSDOL to manage a statewide electronic database for minor employment.
  • Employers must register and certify legal compliance.
  • Minors must register and update employment certificates for each job.
  • Certificates issued and revoked electronically.
  • Employers must destroy certificates upon termination.
  • Temporary service employers must provide certificates to each worksite.

Part T – Healthy Terminals Act Revision (Labor Law Article 19-D)

• Updates definitions of covered airport workers.
• Aligns wage and benefit standards with the McNamara-O’Hara Service Contract Act.
• Clarifies employer obligations, recordkeeping, penalties, and enforcement.

Part U – Wage Payment Frequency (Labor Law §198)

• Limits liquidated damages for violations of wage payment frequency (Labor Law §191(1)(a)) if wages are paid semi-monthly.
• First-time violations may incur interest-based damages.
• Repeat violations may still incur full liquidated damages.

Part V – Enforcement Powers (Labor Law §§218, 219)

• Authorizes NYSDOL to issue warrants for unpaid wage penalties.
• Warrants can be enforced like judgments, with liens on property.
• NYSDOL gains sheriff-like powers for enforcement.

Part BB – Unemployment Insurance Reform (Labor Law §592)

• Reduces strike-related suspension of benefits from two weeks to one.
• Benefits not suspended if:
  • Employer hires a permanent replacement.
  • Claimant is not involved in the strike.

Part KK – UI Benefit Rate Adjustment

• Updates calculation of average annual wage using recent census data.
• Intended to increase maximum unemployment insurance benefit rate.

Other Labor-Related Provisions

• Labor Law §140 amended to expand NYSDOL enforcement to:
  • Child performers
  • Child models
  • Street trades
  • Newspaper carriers

Source References

• New York – FY26 State Budget (S 3006C)

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.