NY Healthy Terminals Act Targets Airport Workforce: What New Coverage Requirements Mean for Employers

Takeaways

• The amended Healthy Terminals Act significantly expands the definition of “covered airport worker” to include most employees working at least 50 percent of their time at New York’s major airports.
• Wage, benefit and leave obligations must meet or exceed federal Service Contract Act wage determinations, subject to the Port Authority’s higher minimum wage, where applicable.
• Employers operating at JFK and LaGuardia airports should audit workforce coverage, update compensation practices, and leave policies and post required notices to ensure compliance.

Related links

• Article 19-D, New York Healthy Terminals Act
• NYSDOL HTA poster

Article

Major amendments to the New York Healthy Terminals Act (HTA), which provides protections for certain workers at New York’s major airports, materially expand coverage and align compensation requirements with federal Service Contract Act (SCA) standards. The amendments took effect on Jan. 1, 2026.

Employers operating at John F. Kennedy International Airport (JFK) and LaGuardia Airport should assess whether the expanded requirements apply to their workforce and make adjustments, if needed.

Expanded Definition of “Covered Airport Worker”

The broadened definition of “covered airport worker” includes anyone who performs at least 50 percent of their weekly work at a covered airport, regardless of the role. Previously, non-cleaning and security-related cargo and ramp services and concession workers (including food and retail service) were expressly exempt from the definition of “covered airport worker.” These types of roles are expressly included in the definition.

The Act continues to exclude employees in executive, administrative, or professional (commonly known as “white collar”) roles under the Fair Labor Standards Act.

Employer consideration: The 50 percent threshold may require employers to track on-site versus off-site work time, particularly for hybrid or mobile roles.

Wage, Supplemental Benefit Requirements

The amended HTA aligns minimum wages, supplemental benefits, and leave requirements with the SCA. It also aligns with the corresponding wage determinations for Queens County. The wage determinations are updated periodically (most recently in December 2025). Employers should be sure to consult the most up-to-date information when determining wages, benefits, and leave amounts for covered airport workers.

Where the SCA minimum wage is lower than the Port Authority of New York and New Jersey’s minimum wage, the higher Port Authority wage applies. For example, the current SCA minimum wage for Queens County is $17.75 per hour. The Port Authority Airport Rules and Regulations, however, sets a minimum wage for workers performing “Covered Services” at $21.25 per hour. As of Jan. 1, 2026, employers must comply with the higher applicable rate. An annual minimum wage increase based on the CPI-W will be effective on Jan. 1 of each year from 2027-32.

Employer consideration: Ongoing monitoring of the SCA and the Port Authority minimum wage is necessary to maintain compliance.

Health and Welfare Supplement

The current health and welfare supplement is $5.55 per hour, up to 40 hours per week. Employers may satisfy this obligation by paying the amount in cash or offsetting the amount with the value of the employer-provided health insurance or other qualifying fringe benefits. This rate is tied to SCA wage determinations and is subject to change.

Paid Vacation, Holiday Requirements

Under the amended HTA, the paid vacation requirements also track the applicable wage determinations under the SCA as follows:

Employers must provide a minimum of 12 paid holidays per year. The SCA’s designated holidays are:

1. New Year’s Day
2. Martin Luther King, Jr., Day
3. Washington’s Birthday
4. Good Friday
5. Memorial Day
6. Juneteenth
7. Independence Day
8. Labor Day
9. Columbus Day
10. Veterans Day
11. Thanksgiving Day
12. Christmas Day

Employers can choose to substitute any of the named holidays with another day off with pay, as long as it is part of a communicated plan to employees.

Employer consideration: Employers’ existing paid time off and holiday policies should be reviewed to ensure they meet or exceed SCA-based minimums.

Posting Requirement

Beginning on Jan. 1, 2026, employers covered by the HTA must display a poster summarizing the Act. Employers should confirm the correct version is posted in a conspicuous location at covered worksites.

Enforcement, Penalties

The New York State Department of Labor (NYSDOL), after a hearing, may assess civil penalties against an employer who has violated the HTA of up to $10,000 for a first violation within six years, $20,000 for a second violation within six years, and $50,000 for a third or subsequent violation within six years.

The NYSDOL may also bring a civil action on behalf of employees. It would require the employer to pay the full amount of the underpayment, plus costs and liquidated damages. To avoid liquidated damages, employers can prove a good faith basis for believing that its conduct complied with the HTA.

Next Steps for Employers

Affected employers may want to consider the following steps:

1.  Confirm applicability

• Does the organization operate at a covered airport?
• Does it employ more than 10 employees? 
• Does it provide airline services, concessions, or support functions?
• Which employees meet the expanded definition of “covered airport worker”?

2.    Audit workforce coverage

• Identify employees performing at least 50% of weekly work at a covered airport. Implement a tracking system to record on-site versus off-site hours for covered workers.
• Identify part-time and previously exempt workers who are now impacted.

3.    Review wages and supplemental benefits

• Confirm wage rates meet or exceed the minimum wage required under the applicable wage determination. 
• Validate calculation and application of the health and welfare supplement.
• Budget for scheduled increases.

4.    Evaluate health benefit compliance

• Confirm that employer-provided coverage satisfies the required fringe benefit value.
• If no qualifying plan is offered, ensure the full required health benefit supplement payments are made.

5. Update leave, vacation, holiday policies

• Align vacation accrual schedules with SCA requirements.
• Confirm at least 12 compliant paid holidays are provided each year.

6. Train key personnel

• Train human resources and payroll employees on the new definitions of “covered airport worker” and the corresponding requirements.
• Review collective bargaining agreements for compliance or re-negotiation needs.

7. Monitor ongoing developments

• Keep apprised of the SCA wage determination updates, HTA FAQs, and potential guidance documents.

The amended HTA materially expands employee coverage and increases compliance complexity for airport employers. Please contact an attorney at Jackson Lewis if you have any questions about these developments.