What Protections Do New York Employees Have When Hours or Pay Are Reduced?

In New York, employees have legal protections when their hours or pay are reduced. This includes protections such as minimum wage requirements, written notice of unemployment eligibility for significant reductions, and programs like Shared Work that allow partial unemployment benefits.

If you are concerned that your rights were violated regarding hours or pay, here’s what you need to know.

When your employer cuts your hours or reduces your pay, it feels personal. It feels unfair. And often it is. But in New York, there’s a law behind the idea that work should be predictable, fair, and lawful. Your rights matter, even if your contract doesn’t expressly spell them out.

Employee Hour and Pay Protections

Several restrictions are in place to protect your hours and pay rights, including:

1. Employers Can Change Your Hours and Pay, With Limits

In New York, if you don’t have a union contract or written employment agreement guaranteeing fixed hours or pay, employers generally can change your schedule or wages going forward. They can reduce your hours or cut your pay for future work as long as they still pay at least the applicable minimum wage and required overtime.

But employers cannot deduct pay retroactively for work you’ve already completed. Furthermore, they cannot make changes as a form of retaliation for exercising protected rights like filing complaints or requesting leave.

2. Written Notice of Eligibility for Unemployment Is Required

Recent New York legislation now requires employers to give you written notice if your hours are cut enough that you might qualify for unemployment benefits, even if you are still employed. This notice must explain your right to file for unemployment because of a reduction in hours.

This is a big deal. It means the law recognizes that a reduction in hours can significantly affect your livelihood, similar to layoffs, and employers must tell you about your options.

3. Unemployment Insurance Can Help Bridge the Gap

If your hours and earnings are reduced drastically enough, you may qualify for partial unemployment benefits through the New York State Department of Labor. The eligibility rules hinge on working 30 hours or fewer in a week and earning under a certain threshold.

Beyond the standard unemployment system, New York also offers the Shared Work Program. This is a voluntary plan employers can adopt to avoid layoffs by reducing hours and wages for a unit of employees by 20% to 60%, while you collect partial unemployment benefits that make up some of the difference.

This is designed to preserve jobs and help workers financially when business slows without going through full layoffs.

4. Minimum Wage and Pay Requirements Still Apply

Even if your pay rate is reduced, your employer must still pay at least the New York state minimum wage, which varies by location in 2026.

Both hourly and salaried employees qualify. If your “reduced” rate drops below the minimum set by your local government, you may have a wage claim.

Your employer also must continue to provide written pay notices and accurate wage statements, per the Wage Theft Prevention Act. That means clear documentation of your pay rate, pay method, and pay dates.

5. Retaliation for Asserting Your Rights Is Illegal

Perhaps the most critical protection provided to employees: your employer cannot reduce your hours or pay as retaliation for asserting any labor rights. That includes reporting wage issues, complaining about unsafe conditions, or taking legally protected leave (like sick leave or family leave).

If the reduction in hours or wages follows a protected activity, you may have legal claims beyond wage or unemployment benefits, including reinstatement, back pay, and damages.

What You Can Do If Your Pay or Hours Are Cut

If your schedule changes or you’re earning less:

• Document everything. Keep pay stubs, schedules, and any communication about the cuts.
• Check minimum wage and overtime compliance. Employers still must follow wage and hour laws even after cuts.
• Look for a written notice. Employers must notify you of unemployment eligibility for significant reductions.
• File for unemployment or Shared Work benefits if eligible.

Consult an employment attorney if you suspect retaliation or unlawful treatment.

In New York, work isn’t just about showing up and doing your job. It’s governed by laws designed to protect fair pay and fair treatment. If your hours or wages are reduced, you have options, and you should use them. For more information or to schedule a consultation to discuss your situation, contact Borrelli & Associates, P.L.L.C.