By: Damian P. Conforti and Bryan Cavallaro
Key Takeaways
• Hotels, restaurants, and hospitality businesses in New York and New Jersey must navigate new minimum wage increases and employment law updates in 2026 impacting hospitality employers.
• Changes to employee leave laws, including updates to New York’s ESSTA and the New Jersey Family Leave Act, will expand eligibility and create new compliance obligations for hospitality operators.
• Pricing transparency and hidden fee regulations are increasing scrutiny on hotels and other hospitality businesses following the FTC’s Rule on Unfair or Deceptive Fees.
• Working with an experienced hospitality lawyer or hospitality law firm can help hospitality businesses stay compliant with evolving labor laws, consumer protection rules, and industry regulations.
As the ancient Greek philosopher Heraclitus famously observed, “The only thing that is constant is change.” Nothing could be truer of the hospitality landscape for 2026. As the new year presses on, we thought it would be helpful to share some insights into what has changed, what is set to change, and how to practically prepare for these developments. As always, working with knowledgeable counsel can simplify complex issues and help you stay informed and effective.
Here are few changes:
Increasing Minimum Wage
New York and New Jersey owners and operators have been adjusting to the wage increases that took effect on January 1, 2026.
New York implemented varied minimum wage hikes across three different regions: (1) New York City, (2) Long Island & West Chester, and (3) the Remainder of New York State. Furthermore, the wage hikes are implemented differently depending on whether you are an hourly employee, a tipped service employee, or a tipped food service worker. For example, here is the 2025 and 2026 comparison for tipped food service workers in New York City, Long Island, and West Chester:
- 2026: $11.35 cash wage; and $5.65 tip credit ($17.00 total)
- 2025: $11.00 cash wage; and $5.50 tip credit ($16.50 total)
Across the Hudson, New Jersey effected several minimum-wage hikes as well, including requiring that seasonal and smaller employers pay employees at least $15.23 per hour, reflecting a $0.70 hourly increase. Additionally, tipped employees will now earn a base wage of $6.05 per hour, an increase from the previous $5.62, with employers required to make up the difference if tips do not bring the employee’s earnings to the state minimum wage.
Expanding Protected Leave
New York’s amendments to its Earned Safe and Sick Time Act (“ESSTA”) went into effect on February 22, 2026. Among other expanded protections, employers must provide an additional 32 hours of unpaid protective leave immediately upon the employees hiring, and again on the first day of each new calendar year. Also, employees can utilize protected leave more broadly now as the new law encompasses more scenarios like staying home during public emergencies (e.g., weather-related events), and attending to needs related to workplace violence.
New Jersey is preparing to implement significant updates to the New Jersey Family Leave Act (“NJFLA”). The expanded provisions will take effect on July 17, 2026. These new amendments will expand coverage, effectively requiring employers to facilitate NJFLA leave for more employees throughout the state. Moreover, there will be a substantial impact on smaller businesses as the law reduces qualified employee thresholds:
- Current Law – To qualify an employee must have:
- Worked for an employer that employed at least 30 employees;
- Been employed by that employer for at least 12 months; and
- Worked at least 1,000 hours during the 12 months preceding the requested start date of leave.
- July 17, 2026 – To qualify an employee must have:
- Worked for an employer that employed at least 15 employees;
- Been employed by that employer for at least 3 months; and
- Worked at least 250 hours during the 3 months preceding the requested start date of leave.
Pricing Transparency
Since the FTC’s Rule on Unfair or Deceptive Fees took effect in May of 2025, state and local governments are intensifying scrutiny of hidden fees, especially in hotels.
For example, Mayor Mamdani’s administration issued a rule, effective February 21, 2026, banning hotels across NYC from charging hidden fees and performing unexpected credit card holds. The new rule declares it an unfair deceptive trade practice to display or advertise hotel pricing without clearly including all mandatory fees. Violating parties could be held liable under the NYC’s Consumer Protection Law.
Although New Jersey has not adopted any specific rule or legislation mirroring the FTC’s new Rule on Unfair or Deceptive Fees, hospitality businesses in the state remain subject to the federal FTC regulations as well as the requirements of New Jersey’s existing Consumer Fraud Act.
Contact Us
If you need assistance from a hospitality lawyer and want to schedule a consultation to learn more about how we can help you on policy issues such as keeping up with federal and state statutes and rules, and local ordinance compliance, please contact Damian P. Conforti or Mandelbaum Barrett, PC’s Hospitality Practice Group.