Hiring Employees in New York: Registration, Pay Transparency and Sick Leave

Hiring your first employee in New York is a significant milestone for your business, but it comes with compliance obligations that vary by company size and location. Whether you're establishing your presence in New York City or operating elsewhere in the state, you'll need to navigate registration requirements, salary disclosure rules, and mandatory paid time off policies. This guide covers the key frameworks employers must understand when bringing on staff in New York.

NYS Employer Registration (NYS-100)

Before you can legally employ anyone in New York State, you must register with the New York State Department of Labor using Form NYS-100. This registration establishes your business as an employer and creates your records in the state system. The registration process is straightforward but non-negotiable, and failure to register can result in penalties.

Registration is handled by the New York State Department of Labor, Unemployment Insurance Division. You can complete the registration online through New York Business Express or by paper filing. Most new employers register when they form their business entity (LLC, corporation, or sole proprietorship), though registration as an employer is a separate step from business formation.

Have your Federal Employer Identification Number (EIN) from the IRS ready when you register. New York will also need information about your business structure, principal place of business in New York, and details about the individuals responsible for payroll. Contact the New York Department of State only for business entity filings; to confirm employer registration procedures, contact the New York State Department of Labor, as requirements can change.

Pay Transparency: The Salary Range Disclosure Rule

New York State requires employers to disclose salary ranges in job postings, making compensation transparency a legal obligation rather than a voluntary practice. This rule applies to employers with as few as four employees and covers all job postings, including remote positions that can be performed in New York.

When you post a job opening, you must include the salary range you're willing to pay for that position. The salary range should be based on what you would actually pay someone hired into that role, not a theoretical range. This applies to postings on your company website, job boards, social media, and any other recruiting channel. The rule covers both full-time and part-time positions.

Exempt positions (executive, administrative, or professional roles under Fair Labor Standards Act rules) have specific salary floor requirements in New York. Before posting, review the current salary thresholds with the New York Department of Labor to ensure your disclosures are compliant. Violations can result in penalties and legal claims from applicants or employees.

If you're recruiting for roles that could be performed in New York but are advertised more broadly, include the salary range for a New York employee performing the role. This proactive approach prevents compliance issues later and signals to candidates that you're a transparent employer.

Paid Sick Leave: A Tiered System by Company Size

New York requires all employers to provide employees with sick leave, paid for most employers, also called paid time off for personal illness, family care, or purposes related to domestic violence, sexual offense, or stalking. The amount of time depends on your company size and, if you operate in New York City, additional local rules apply.

Statewide Paid Sick Leave Requirements

Employers with four or fewer employees must provide up to 40 hours of sick leave a year, which is unpaid if the employer's net income was $1 million or less in the previous tax year and paid if it was higher. Employers with 5 to 99 employees must provide up to 40 hours of paid sick leave, and employers with 100 or more must provide up to 56 hours. The amount accrues over time, either through a fixed accrual per pay period or by providing a lump-sum grant of days at the beginning of each year. Most employers choose the accrual approach: employees earn paid sick time as they work, at the state-required minimum of one hour per 30 hours worked.

Paid sick leave can be used for the employee's own illness, preventive care, family member care, or purposes related to domestic violence, sexual offense, or stalking. You must allow employees to use accrued paid sick leave and cannot require a doctor's note for absences under three consecutive days. Unused paid sick leave generally carries over to the next year, though you can cap the total accrual.

For exact accrual rates and current regulations, consult the New York Department of Labor or visit their website directly. Regulations can be updated, and you'll want the most current thresholds and requirements for your company size.

NYC Earned Safe and Sick Time (Additional Layer)

If you operate in New York City, additional local rules apply on top of state requirements. NYC has its own Earned Safe and Sick Time law that covers employers with as few as one employee and provides more generous requirements than the statewide rule. The paid sick time in NYC can be used for all the same purposes as the state law, plus additional reasons such as closure of the employee's work site due to a public health emergency.

In NYC, employers with 100 or more employees must provide up to 56 hours of paid safe and sick leave a year, employers with 5 to 99 employees up to 40 hours, and employers with four or fewer employees up to 40 hours, which is paid if net income was more than $1 million and otherwise unpaid.

The interaction between state and local rules can be complex. If you're based in NYC, you must follow whichever rule is more generous to employees. The New York City Department of Consumer Affairs (DCA) (now the Department of Consumer and Worker Protection, DCWP) administers the local rule. Confirm the current thresholds and accrual rates directly with the city or state agency before designing your policy.

Wage Theft Prevention Act: Mandatory Notices and Wage Statements

New York's Wage Theft Prevention Act requires employers to provide employees with written notice of the terms and conditions of their employment. This notice must be in the language the employee speaks or understands and must include information about pay rate, pay frequency, regular pay day, overtime rate, allowances claimed as part of the minimum wage, and the employer's name, address and phone number.

The notice is a critical compliance document. You should provide it to every employee before they start work, and you must keep a signed acknowledgment on file. Failing to provide proper notice can expose you to wage claims and penalties. The New York Department of Labor provides model notices in multiple languages on their website. Using the model notice is a safe way to ensure you're meeting the requirement.

Additionally, every employee must receive a wage statement with each paycheck that shows gross wages, deductions, net wages, and the pay period. This statement must be accurate and itemize all deductions. Incorrect or missing wage statements are a common source of wage disputes.

The Freelance Isn't Free Act: A Statewide Rule Since August 2024

If you engage independent contractors or freelancers in New York, the Freelance Isn't Free Act applies. This law, effective August 28, 2024, requires a written contract for any engagement where a freelancer will provide services valued at $800 or more.

The contract must include the scope of work, payment terms, rate of pay, payment schedule, and the circumstances under which the work can be terminated. The contract protects both you and the freelancer by creating clear expectations about deliverables, deadlines, and compensation.

A written agreement is not optional if the threshold is met. The law applies regardless of whether the freelancer is a New York resident, as long as the work is to be performed in New York or the hiring party is based in New York. If you plan to work with freelancers, ensure you have a template contract ready and understand which engagements trigger the requirement.

New Hire Reporting: A Federal Requirement

When you hire a new employee, you must report the hire to New York's State Directory of New Hires within 20 days (or the timeframe required by your state reporting system). This federal requirement, enforced through state programs, creates a centralized database used for wage garnishment, child support enforcement, and unemployment insurance administration.

Most employers report new hires electronically through their state's designated reporting system or, in New York, as part of their regular payroll and tax filing processes. If you use a payroll service, they typically handle this reporting. If you process payroll in-house, confirm your reporting procedure with the New York Department of Labor or your payroll system provider.

Additional Considerations for New York Employers

Workers' Compensation Insurance. You must carry workers' compensation insurance or be a state-approved self-insured entity. This is a legal requirement if you have employees, and failure to carry coverage can result in substantial penalties. Contact the New York Department of Labor for general guidance; coverage and self-insurance rules are set by the New York State Workers' Compensation Board.

Unemployment Insurance Tax. Register with the New York Department of Labor for unemployment insurance tax purposes. You'll pay quarterly or annual premiums based on your payroll and claims history. New employers typically pay a higher rate until they have established a claims record.

Income Tax Withholding. You must withhold federal and New York State income taxes from employee paychecks. Register for an Employer Identification Number (EIN) with the IRS if you don't already have one. New York requires you to file Form NYS-45 each quarter to report withholding and wages.

Local Compliance. Beyond state requirements, your city or county may have additional rules about hiring, scheduling, or benefits. For example, New York City has rules on predictable scheduling for certain industries. Check with your local government offices for any additional requirements.

Resources and Official Contacts

Start your compliance journey by contacting the agencies that administer these requirements:

• New York Department of State: Handles business entity filings. Employer registration (Form NYS-100) is filed with the New York State Department of Labor instead. Visit dos.ny.gov for registration procedures and current requirements.
• New York Department of Labor: Administers wage and hour rules, paid sick leave requirements, and unemployment insurance. Workers' compensation is handled separately by the Workers' Compensation Board. Their website at ny.gov has model notices, pay transparency guidance, and paid leave regulations.
• New York City Department of Consumer and Worker Protection (DCWP): If you operate in NYC, DCWP administers local earned safe and sick time rules and other worker protections. Visit the DCWP website for NYC-specific requirements.
• Internal Revenue Service (IRS): Obtain an EIN, file W-2s and W-3s, and handle federal withholding and payroll tax requirements.
• New York Department of Taxation and Finance: Handles state income tax withholding and quarterly filing for New York employers.

Before you hire your first employee, consult with a qualified employment attorney or HR professional who is familiar with New York employment law. Employment law is complex and varies significantly by company size and location. A professional advisor can help you implement compliant policies tailored to your business.

The Bottom Line

Hiring employees in New York requires navigating multiple overlapping rules: state employer registration, salary disclosure in job postings, paid sick leave accrual, wage statement requirements, and worker protection statutes. If you operate in New York City, additional local rules apply. The consequences of non-compliance can include penalties, back pay obligations, and legal claims from employees.

The good news is that these requirements are transparent and widely documented by state and city agencies. Start by registering with the New York State Department of Labor using Form NYS-100, review the current pay transparency and paid leave guidelines from the Department of Labor, and implement compliant payroll and hiring practices from day one. When in doubt, consult with a professional who specializes in New York employment law.

Disclaimer: This article is informational and does not constitute legal or tax advice. Employment law is complex and varies by specific circumstances. Before making hiring decisions or designing employee policies, consult with a qualified employment attorney or HR professional licensed in New York.