NYC Paid Sick Leave for Restaurants

What it is

NYC restaurants are covered by two stacked laws — the NYC Earned Safe and Sick Time Act (ESSTA) and the New York State Paid Sick Leave Law (PSL). Where they overlap, whichever is more generous to the employee controls. Both require employers to provide paid (or, for the smallest businesses, unpaid) leave that employees can use for their own illness, a family member's illness, preventive care, or to recover from domestic violence.

Who it applies to

Every employee in NYC, regardless of immigration status, full-time/part-time, or how long they've been on staff. The amount of leave depends on employer size:

• 100+ employees → 56 hours/year paid
• 5–99 employees → 40 hours/year paid
• 1–4 employees with net income over $1M → 40 hours/year paid
• 1–4 employees with net income under $1M → 40 hours/year unpaid

Note: employee count is global, not per-location, and includes part-time workers.

What compliance looks like

1. Written policy. NYC DCWP audits will ask for it on day one. Must cover accrual, carryover, usage, and notice requirements.
2. Accrual. Employees earn 1 hour for every 30 worked, starting day 1. Or you can front-load the annual amount on January 1.
3. Carryover. Up to 40 hours (or 56 for 100+ employers) of unused leave carry into the next year — UNLESS you front-load, in which case you can require use-it-or-lose-it.
4. Notice. Provide written notice to every employee at hire AND post the official DCWP notice in English plus your workforce's primary language(s). The Notice of Employee Rights template is available at NYC DCWP's site.
5. Records. Keep accrual + usage records for 3 years. Make them available to employees on request.
6. Use. Employees can use leave in as little as 4-hour increments. You cannot require advance notice of more than 7 days for foreseeable absences, or notice 'as soon as practicable' for unforeseeable.

Penalties for non-compliance

Failure to provide written notice: $50 per employee.
Failure to provide leave: $500 per instance.
Retaliation (firing/disciplining someone who uses leave): $500 per instance + reinstatement + back pay + $1,500 in compensatory damages.
DCWP can also assess a $500 fine per recordkeeping violation.

Real enforcement note: NYC DCWP runs random audits and follows up on every employee complaint. The most common citation isn't denial of leave — it's failure to post the required notice in the workplace.

How Panko helps

Panko's daily city-specific Pro Tips flag NY paid sick leave updates (rate changes, new DCWP guidance, court rulings) as they happen. Pro members get a push when there's a material change. The Inspection Radar feature pings you the moment a DOH inspector shows up — having your written sick leave policy posted is a common DOH cross-check during inspections.

Sources

• NYC DCWP — Earned Safe and Sick Time Act
• NYS DOL — Paid Sick Leave

Pro members get a push the moment this rule changes — new rate, new guidance, new court ruling. Plus city-specific Pro Tips that flag the compliance windows that matter for your operation.