May 18, 2026
New York City Intensifies Enforcement of Fair Workweek and Paid Leave Laws
New York City has recently increased enforcement of its worker protection laws. This creates heightened risk for employers, particularly in the fast food and retail sectors.
Recent Actions and Settlements Highlight Financial Exposure
The City recently filed an enforcement petition against a Dunkin’ franchisee operating in Staten Island. The petition alleges that violations of the New York City Fair Workweek Law and Protected Time Off Law affected approximately 1,000 workers across 21 locations. Multiple violations can occur within a single week, and workers may be entitled to between $200 and $500 per violation.
The City also announced two significant settlements with employers after investigations found violations of laws protecting fast food and retail employees. In one, a Dunkin’ and Taco Bell franchisee agreed to pay more than $1.5 million in restitution to over 760 workers, along with more than $155,000 in penalties and costs. In another, an LLC agreed to pay more than $277,000 to over 60 workers, in addition to civil penalties.
Enforcement Trends and Takeaways
City officials have made clear that enforcement will continue at a steady pace. Since January 1, 2026, the City has secured more than $8.5 million in restitution for workers across multiple industries.
Employers should expect increased investigations, including broader company-wide reviews, as well as continued focus on repeat violations. The potential exposure from per-violation penalties can be significant.
What Employers Should Do Now
Employers operating in New York City should review their scheduling practices and policies, confirm compliance with paid and unpaid leave and work schedule requirements, and ensure that managers are trained on applicable rules. Internal audits can help identify issues before they result in enforcement actions.
Conclusion
New York City is continuing to prioritize enforcement of worker protection laws. Employers should view compliance as a practical business issue. Addressing potential gaps now can reduce legal and financial exposure. For questions about worker protection laws and NYC requirements, contact Andrew Heighington at aheighington@booklawllp.com or Sheryl Galler at sgaller@booklawllp.com.
