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New rules in New York: retirement plans and unpaid sick leave

After much planning and delay, New York has finally launched its Secure Choice: Starting March 18, 2026, employers with 30 or more employees will be required to either sponsor their own retirement plan or enroll in the state’s Secure Choice program, and smaller employers will have similar requirements on a phased-in schedule. At the same time, New York City is launching an unpaid leave expansion of its existing Earned Safe and Sick Time Act for all employers starting February 22, 2026. The rapidly approaching dates of these two major changes require New York employers’ immediate attention. Join Viventium’s veteran compliance expert, Yonina F. Shineweather, CPA for a not-to-be-missed workshop on the newest rules in New York.

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Webinar highlights

From this webinar, you’ll walk away with a clear understanding of:

How much should you withhold from each employee
To where and how often must you deposit the contributions
What the 30-day opt-out provision means to you and your employees
When employees terminate, what happens to their Secure Choice account
In what ways do NYC’s new unpaid leave rules differ from its paid leave rules

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Executive summary of New rules in New York: retirement plans and unpaid sick leave

This session examines major New York State and New York City compliance developments that directly affect healthcare employers, with a focus on retirement plan mandates and expanded unpaid sick leave requirements. As long‑standing laws move from policy to enforcement, organizations must take concrete action to avoid penalties, operational disruption, and employee confusion.

The discussion centers on how these rules apply in real‑world payroll and HR environments, what steps employers must take to comply, and where proactive communication can reduce friction for caregivers and administrative teams alike.

Federal context and the repeal of the minimum staffing rule

The session opens with recent federal developments that shape the broader healthcare landscape in New York. Most notably, the Department of Health and Human Services formally repealed the federal minimum staffing rule for skilled nursing facilities. The rule would have imposed nationwide minimum staffing ratios and 24‑hour registered nurse coverage requirements.

While the repeal removes imminent federal mandates, existing federal requirements remain in place, and state‑level staffing laws continue to apply. Employers are reminded that compliance obligations now depend more heavily on state regulation, operational assessments, and facility‑specific staffing strategies rather than uniform federal thresholds.

Why New York launched the Secure Choice program

New York Secure Choice is the state’s response to persistent retirement savings gaps among workers. Surveys cited during the session show that a majority of workers feel behind on retirement savings, with many expecting to delay retirement due to insufficient funds. Even within healthcare, where participation rates are relatively high, uncertainty remains around adequacy and long‑term preparedness.

Secure Choice is designed to expand access to retirement savings for workers who do not have an employer‑sponsored plan, using automatic enrollment and payroll deduction to encourage consistent contributions.

Who must register for New York Secure Choice

Employers operating in New York must evaluate whether they are required to register or formally claim an exemption. Secure Choice applies to employers that:

Have at least 10 employees in New York in the prior calendar year
Have been in business for at least two years
Do not currently offer a qualified employer‑sponsored retirement plan

Importantly, exemption is not automatic. Even employers that already sponsor a qualified retirement plan must log into the Secure Choice system and obtain an exemption code by the applicable deadline. Failure to take action – even when exempt – can result in noncompliance.

What counts as a qualified retirement plan

To be exempt from Secure Choice, an employer must sponsor a recognized retirement plan, such as a 401(k), 403(b), SIMPLE plan, SEP plan, or eligible governmental plan. Informal payroll‑deduction IRAs do not qualify, even if employees are already saving for retirement.

Employers only need to offer a qualified plan to at least one employee to qualify for exemption, provided the plan is employer‑sponsored and meets program criteria.

Secure Choice enrollment, defaults, and employer responsibilities

For employers required to participate, Secure Choice operates as a state‑run Roth IRA program. Key features include:

Automatic enrollment of eligible employees
A 30‑day opt‑out window before deductions begin
A default contribution rate of 3 percent of gross wages
Post‑tax contributions invested in default funds if no action is taken

Employer responsibilities are limited to facilitation – uploading employee data, processing payroll deductions, and remitting contributions. Employers are not permitted to make contributions, provide investment advice, or manage accounts.

Despite these limits, employees are likely to direct questions to HR and payroll teams when deductions appear on paychecks, making advance communication critical.

Anticipating employee experience and concerns

The session emphasizes viewing Secure Choice through employees’ eyes. Common concerns may include:

Surprise deductions reducing net pay or earned wage access balances
Confusion about investment options and fees
Uncertainty about account portability when changing jobs
Questions about opting out, changing contribution rates, or withdrawing funds

Employers are encouraged to prepare clear, concise communications that explain what Secure Choice is, how it works, and where employees can find answers – without crossing into financial or investment advice.

New York City’s expanded unpaid safe and sick leave

A second major focus is New York City’s amendment to the Earned Safe and Sick Time Act. Effective February 22, 2026, employers must provide an additional 32 hours of unpaid safe and sick leave each benefit year.

Key requirements include:

Front‑loading unpaid leave with no accrual or waiting period
Immediate availability upon hire
No carryover of unused unpaid leave
Separate tracking and reporting from paid safe and sick time

Employers must display unpaid leave balances, usage, and availability on each pay statement, increasing reporting complexity and requiring updates to payroll systems and templates.

Payroll and reporting implications

The expanded leave requirements necessitate new accrual setups, additional pay‑stub disclosures, and careful coordination with existing New York City paid leave obligations. Paid and unpaid balances must be tracked and reported separately and cannot be combined.

For healthcare employers already managing multiple New York‑specific disclosures, this change underscores the need for system readiness and clear internal processes.

A preview of Trump account guidance

The session closes with a brief overview of newly issued IRS guidance on Trump Accounts – a new savings vehicle introduced under the One Big Beautiful Bill Act. While not the primary focus, employers are encouraged to stay informed as further clarification, forms, and implementation details emerge.

Preparing for compliance with confidence

Taken together, these New York developments signal a shift from legislative planning to active enforcement. Employers should prioritize:

Determining Secure Choice applicability and meeting registration or exemption deadlines
Preparing HR and payroll teams for employee questions
Updating systems to support new leave tracking and pay‑stub requirements
Monitoring ongoing state and federal guidance

Proactive planning and clear communication will be essential to navigating New York’s evolving compliance landscape while supporting caregivers and staff effectively.