Experiences of Restaurant Owners and Managers with the New York City Paid Sick Leave Law

• In Event: Local Experiences with Paid Sick Leave Laws: Implementation, Enforcement, and Preemption

Abstract

Paid Sick Leave (PSL) laws have expanded access to paid sick leave (PSL) for workers who previously lacked it in the restaurant industry. However, little is known about the knowledge and implementation practices of restaurant owners and managers. With its estimated 221,000 resident food service workers and a mature PSL law, NYC is an ideal location to explore the experience of business owners and implementation challenges of PSL as other jurisdictions introduce similar mandates. We surveyed 30,168 permitted restaurants in NYC between July and October 2025 via email to assess their PSL law knowledge, practices, and attitudes. We asked about PSL hours available to staff, accrual practices, doctor’s note requirements, staff communications, implementation challenges and solutions to challenges. The survey was available in English, Spanish, Simplified Chinese, and Traditional Chinese; 90% completed it in English. We received responses from 358 owners and managers (1.2%). Restaurants varied in size, with 12.5% of responses from restaurants with 1-4 employees (small), 66% from restaurants with 5-99 employees (mid-sized), and 19% from restaurants with 100 or more employees (large). We constructed knowledge scores using four questions about the specifics of law (ex. needing to offer PSL to part-time workers, in addition to full-time workers), and non-compliance scores using questions about restaurant practices (ex. how long an employee must work before being able to use their PSL). This study aims to describe 1) NYC restaurant owners’ and managers’ knowledge of their obligations under the NYC PSL law, 2) how restaurants comply or do not comply with the law’s requirements, 3) the opinions of owners and managers about the PSL law, and 4) how they access information about the law. Preliminary findings suggest that restaurant owners and managers have high levels of knowledge about the NYC PSL law, and that benefits are routinely used by employees. However, there are differences by business size. Small restaurants had the lowest level of knowledge (average of 1.5 questions correct out of 4), and knowledge increased with restaurant size (2.8 for mid-sized restaurants and 3.7 for the largest restaurants). Compliance with the law’s requirements was relatively high, with mid-sized restaurants reporting failing to implement an average of 1.7 of the 6 measured constructs and the largest restaurants failing to implement an average of less than 1 of the constructs. Ten years after the law took effect, two-thirds of respondents reported supporting it. Shared challenges, including concern that workers were misusing the benefits (49%), financial burdens (48%), and understaffing (45%), and the financial costs of PSL were reported by more than 50% of those with fewer than 100 workers. Our results suggest that educational efforts to support the smallest establishments may be helpful. Increased awareness of economic benefits of PSL laws would help combat perceived financial burdens. In addition, measures to lower the costs of PSL for small businesses – such as offering tax credits like those provided under the Families First Coronavirus Response Act (FFCRA) – could make it easier for them to comply with the law.

Author

• Meredith Slopen, Stony Brook University
  Presenting Author