New York Laws Taking Effect in 2026 — What You Need to Know

As 2026 begins, a number of state laws will go into effect that will impact individuals, employers, and businesses across the Capital Region of New York. These changes are the result of legislation passed as part of the FY 2026 New York State Budget and other state actions. Here’s a clear summary of the most significant changes and how they will affect you.

1. Minimum Wage Increase

Effective January 1, 2026, New York’s minimum wage will rise again:

• $17.00/hour in New York City, Long Island, and Westchester County
• $16.00/hour for the rest of the state — including the Capital Region

This continued increase affects most workers, including fast food, small business employees, and tipped workers. Wage rates will adjust annually thereafter based on the Consumer Price Index, unless an economic “off-ramp” is triggered.

Impact: Employers should review pay scales and labor budgets now to ensure compliance and avoid potential wage claims or penalties.

2. New York LLC Transparency Act (Modified)

An updated NY LLC Transparency Act is scheduled to take effect January 1, 2026, but in a narrower form than originally passed. After a veto of broader transparency requirements, the law will apply only to non-U.S. LLCs authorized to do business in New York.

Impact:

• Foreign LLCs doing business in New York will need to file beneficial ownership reports.
• Domestic LLCs are not subject to the expanded filing requirements under the modified law.

Businesses should consult legal counsel to determine if they’re covered and compliant.

3. Consumer Protection Reforms

New laws protect consumers by enhancing transparency and fairness:

• Simplified subscription cancellation processes.
• Posted online retailer return/refund policies.
• Regulation of “Buy Now, Pay Later” loans with licensing and oversight.
• Crackdown on exploitative overdraft fees and surveillance pricing.

Impact: These changes affect how businesses engage with New York consumers and require updated terms of service, disclosures, and possibly new compliance procedures.

4. Housing and Fair Housing Rules

As part of the 2026 state budget:

• New funding and programs aim to increase affordable housing supply and support housing development throughout the state.
• A new law prohibits appraisal discrimination under New York’s Human Rights Law and allows fines for violations.

Impact: Property developers and local governments should align projects with pro-housing incentives. Appraisers and real estate professionals must review compliance with fair housing appraisal standards.

5. Workforce and Employer Compliance Changes

Several employment-related reforms are now law:

• Stronger enforcement against wage theft and expanded Department of Labor authority to collect unpaid wages.
• Digitization of youth working papers to streamline youth employment compliance.
• Unemployment insurance reforms to reduce costs for employers and expand benefits for workers.

Impact: Employers should update internal HR policies and payroll systems to account for new compliance and reporting requirements.

6. Public Safety and Consumer Protection Measures

New safety laws and funding include:

• Public safety investments including expanded transit security and gun violence prevention programs.
• Class B misdemeanor penalties for individuals using masks while committing or evading arrest for certain crimes.

Impact: Local governments and public safety agencies will implement new rules and enforcement strategies; residents and businesses should be aware of updated penalties.

7. Other Notable 2026 Changes

Social Media Mental Health Warnings: Platforms operating in New York that use algorithmic, autoplay, or infinite feeds must display mental health warnings — similar to tobacco or alcohol warnings; civil penalties of up to $5,000 per violation can apply.

What This Means for the Capital Region

For Individuals:

• More take-home pay for minimum wage workers.
• Enhanced consumer protections in online and financial transactions.
• Greater housing affordability efforts and anti-discrimination enforcement in real estate.

For Businesses:

• Payroll and labor compliance updates are required.
• Certain LLCs must comply with new transparency reporting.
• Consumer-facing businesses must revise return/refund and subscription practices.
• Employers should prepare for tighter enforcement of wage and youth work rules.

For Legal and Compliance Teams:

• Review internal policies and contracts.
• Update employee handbooks and consumer terms.
• Consult counsel to navigate nuanced changes to LLC and labor laws.

 

Bottom Line

2026 brings a mix of economic, consumer, housing, and workforce changes in New York that affect almost every sector. Advanced planning and legal review are essential to staying compliant and maximizing opportunities under the new legal landscape.

For clients in the Capital Region and throughout New York State, Dreyer Boyajian LLP’s experienced legal team will be here to help our clients understand these changes.