New York City’s paid sick leave comes as a bucket heavy with plenty of compliance measures. As of February 22, 2026, the legislative architecture of the city’s workplace has fundamentally shifted. This has placed a heavy administrative burden on every employer within the five boroughs. The amendments to the Earned Safe and Sick Time Act (ESSTA) have introduced a complicated ‘three-bank’ system that requires precise payroll differentiation and a total overhaul of wage statements.
Does NYC have paid sick leave, though?
The short answer is yes. However, the reality is far more compliance than a single line item on a pay stub. Under the NYC ESSTA update of 2026, the city has effectively tripled the tracking requirements for employers. While most companies were already accustomed to providing 40 to 56 hours of paid leave, the new mandates require the simultaneous management of unpaid banks and specialized medical leave.
What’s behind the three-bank system?
In order to maintain compliance with New York City’s paid sick leave laws, your payroll system must now bifurcate and report three separate balances for every employee:
Bank 1: Paid Safe/Sick Time
The standard 40 to 56 hours. This continues to accrue at a rate of one hour for every 30 hours worked…