The state is now allowing restaurants in COVID Orange Zones to operate under Yellow Zone restrictions.
That means indoor dining can resume, but with no more than four people to a table, and the restaurants must close at 10:00 p.m.
The change followed a judge's decision Wednesday granting a preliminary injunction in a case first brought by restaurants in Erie County.
Governor Cuomo says the state disagrees with the court's decision -- saying CDC data clearly demonstrates indoor dining increases the spread of COVID-19.
The plaintiffs argued that the Orange Zone restrictions were unfair and that they could operate safely.