Final budget is approved: Here’s what New York employers should know

On April 20, 2024, Governor Kathy Hochul approved the $237 billion New York State Budget for fiscal year 2025. Several of the budget’s provisions will affect and create new legal obligations for New York State employers. Here’s a summary of some of the key employment-related provisions of the budget.

Paid prenatal personal leave

The budget creates a new form of paid leave for New York employees. Beginning on January 1, 2025, employers will be required to provide employees with up to 20 hours of paid “prenatal personal leave,” which is defined as “leave taken for the health care services received by an employee during their pregnancy or related to such pregnancy.”

The legislation creates the new leave entitlement by amending the existing New York State Paid Sick Leave Law, New York Labor Law Section 196-b. Below are some answers to common questions about the new leave requirement and employers’ associated obligations.

Who is covered?

As with the existing paid sick leave obligation, the new prenatal personal leave obligation will apply to virtually all private sector employers in New York. However, it appears the leave will be available only to an employee who is pregnant and not, for example, the spouse of a pregnant person. You should keep in mind that, as with paid sick leave, prenatal personal leave will be available to all employees, even those who are part-time or temporary.

How much leave will an employee be eligible for in a benefit year?