Governor Kathy Hochul’s 2026 Budget Introduces Several Employment-Law Changes

By Anastasia M. McCarthy, Esq.
 

New York State Governor Kathy Hochul has introduced her Fiscal Year 2026 Executive Budget, proposing several changes that could impact employers throughout the state. Key proposals include:

  • An amendment to the Labor Law limiting a plaintiff’s recovery of liquidated damages for violations of frequency of pay violations where the employee was paid regularly on at least a semi-monthly basis. The bill would also clarify the damages recoverable.
  • An expansion of the Department of Labor’s enforcement powers to collect lost wages when an employer has been found to have violated wage payment provisions. Specifically, the DOL would be authorized to seize the assets of an employer to satisfy debts owed to employees.
  • Amendments to the Labor and Penal Laws increasing penalties for violations of child labor laws.


For guidance on these issues, or other labor and employment concerns, please contact any member of the firm’s Labor & Employment team at 716-849-8900.

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