Key Takeaways

• This is a statewide mandate and not a New York City-only law

• Covered employers must either certify they already offer a qualified retirement plan or facilitate payroll deductions into a state-administered Roth IRA

• All private employers that have been in business for at least two years, with 10 or more employees, that do not already offer a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP) will be required to act

• The compliance deadlines are fast approaching; depending on the size of a business, deadlines range from March 18 to July 15, 2026

New York State is rolling out a mandatory retirement savings requirement that will affect many private employers – including those in NYC – starting in 2026. The New York State Secure Choice Savings Program was established in 2021 but will soon go into effect for all private employers in New York State with 10 or more employees who have been in business for at least two years and do not already offer a qualified retirement plan (such as a 401(k), SIMPLE IRA, or SEP).

Covered employers must either certify to the state that they already offer a qualified retirement plan or facilitate payroll deductions into a state-administered Roth IRA by registering on the Secure Choice Savings Program’s website. When registering on the website, employers should be prepared to enter their Employer Identification Number (EIN) and unique Access Code that was sent to the business via postal service or email. If you cannot find your code, you can request it here.

Importantly, no employer contributions are required, as the Secure Choice Savings Program is only offering employees the opportunity to participate in a government administered plan. All employees will be automatically enrolled in the plan but may opt out. An employer’s responsibility is only to facilitate the Secure Choice Savings Program. Employers are not required to – and should not – provide any advice about the Secure Choice Savings Program or related investments.

The law is codified in New York General Business Law, Article 43, and employers that fail to register or certify an exemption may face civil penalties. Enforcement and penalties begin in 2026, with rolling deadlines based on employer size.

COMPLIANCE DEADLINES

For employers with 30+ NY-based employees, they must comply with these requirements by March 18, 2026. For employers with between 15 to 29 NY-based employees, they have until May 15, 2026, to comply. And for employers with between 10 to 14 NY-based employees, their compliance deadline is July 15, 2026. This requirement does not apply to employers with less than 10 NY-based employees.

STRATEGIC TAKEAWAY

Some employers may find it advantageous to adopt a private 401(k) or similar plan instead of defaulting into the state program – particularly for recruiting, retention, and long-term benefits strategy.

If you haven’t reviewed your retirement plan obligations yet, now is the time to do so.

NEXT STEPS

If you will not be offering a qualifying plan at the time of the applicable deadline, you must facilitate payroll deductions into a state-administered Roth IRA by registering on the Secure Choice Savings Program’s website.

For employers looking for more in-depth information on the Secure Choice Savings Program, a New York Secure Choice team and program administrator will hold a webinar on January 29, 2026 at 10 am ET, a sign up link can be found here. A previously recorded webinar can also be found here.

If you have questions about how this impacts your business, please contact:

• Scott R. Green
• Logan Arlen
• Cali L. Chandiramani
• Christopher P. Maugans
• Caroline J. Berdzik
• Stephen C. Mazzara
• Or another member of the Employment and Labor team