What’s new in New York employment law: Key developments to watch through year-end 2026

New York State and New York City have historically been two of the most proactive, employee-friendly jurisdictions when it comes to workplace-related legislation. That trend has only continued this year. Indeed, state and city lawmakers have passed a host of workplace bills over the course of 2026, some of which have been signed into law, while others are still awaiting signature by Governor Hochul.

Below, we summarize the state and local employment legislation scheduled to take effect later this year or next year, as well as pending bills that would take effect in the near term if signed into law. New York employers should monitor all of these developments closely and consider whether changes to employment agreements, compensation plans, personnel-record practices, job postings, or other workplace policies are required.

Laws taking effect or reaching key deadlines

• NYC pay data reporting: agency designation deadline (Int. 982-A and Int. 984-A) (effective December 4, 2026) — Late last year, the New York City Council enacted two companion bills (Int. 982-A and Int. 984-A) creating new pay data reporting obligations for private employers with 200 or more employees in the city. Once fully implemented, the program will require covered employers to file annual pay data reports with a designated city agency, using a framework modeled on the EEOC’s former EEO-1 Component 2 format (which, as an aside, may itself be on the way out, as we have discussed in recent posts).

The rollout is phased as follows: first, the Mayor must designate a lead agency by December 4, 2026. That agency then has up to one year to develop a standardized reporting form and employers will have an additional year after the form is published to begin submitting data.

Employers do not need to submit reports yet, but covered employers may want to assess whether their payroll and HR systems can produce accurate compensation and demographic data and consider how that information is collected and maintained across their New York City workforce.

• Amended Trapped at Work Act (A9452) (effective February 13, 2027) — The Trapped at Work Act was originally signed into law on December 19, 2025, prohibiting employers from requiring employees to enter into “employment promissory notes” or agreements requiring repayment if the employee leaves before a specified period. Governor Hochul signed the original law with a chapter amendment, acknowledging ambiguities and conditioning enforcement on legislative revisions. The Legislature passed those revisions, and Hochul signed the amended version on February 13, 2026. The amendments narrowed the law’s scope, clarified permissible repayment arrangements, and delayed the effective date to one year after the amendments became law.

The amended Act accordingly takes effect on February 13, 2027. Employers should use the remaining months to review training-repayment agreements, tuition-reimbursement arrangements, sign-on and retention bonus agreements, relocation agreements, and any employment templates that contain repayment obligations. For more information, see our recent blog, “New York amends the ‘Trapped at Work Act’ to clarify employers’ obligations.”

• RAISE Act (S5234/A6453A) (effective January 1, 2027) — New York lawmakers enacted the Responsible AI Safety and Education Act (RAISE), which takes effect on January 1, 2027. Among other provisions, large AI developers will need to notify employees of their rights and obligations under the law within 90 days after the effective date, upon hire, and through conspicuous workplace postings.

Bills awaiting Governor Hochul’s signature

Several employment bills passed both chambers of the state legislature during the 2026 session and remain pending before Governor Hochul. If enacted, some would make significant changes to New York employment law and take effect immediately or shortly thereafter.

• The “No Severance Ultimatums Act” (S372A) — The No Severance Ultimatums Act would establish new requirements for workplace severance/separation agreements. Under the bill, employers offering severance agreements that include a release of claims would need to (i) notify the employee in writing of the employee’s right to consult an attorney, (ii) provide the employee at least 21 calendar days to consider the agreement, and (iii) allow a seven-calendar-day revocation period after execution, during which the agreement has no legal force. Employees may choose to sign before the 21-day consideration period expires, but the decision would have to be knowing and voluntary. A severance agreement that does not comply with the bill would be void and unenforceable.

The proposed requirements are similar in some respects to the federal Older Workers Benefit Protection Act but, critically, would apply regardless of the employee’s age. This bill would take effect immediately if enacted.

• Access to Personnel Records (S3460) — New York currently has no statute granting employees the right to access or review their personnel records, unlike many other states. S3460 would change that by amending the Labor Law to add a new section 210-b establishing a comprehensive personnel-record access regime. The bill would allow an employee or former employee to request a copy of their personnel record twice per calendar year, without charge, and would require the employer to provide the record within five business days of a written request. The bill also would require employers to notify employees within 10 days after placing certain negative information in a personnel record, prohibit retaliation against employees who exercise their rights, and authorize civil penalties of $500 to $2,500, enforceable by the Attorney General. The bill would take effect 60 days after enactment. For more information, see our recent blog on New York’s proposed personnel-record access law.
• The Anti-Waiver of Employment Rights Act (S4424) — The Anti-Waiver of Employment Rights Act would broadly void contractual provisions that waive or limit employees’ substantive or procedural rights, remedies, or claims under the New York Labor Law and New York State Human Rights Law. The bill targets provisions commonly found in employment agreements, offer letters, handbooks, and compensation plans — including shortened statutes of limitations, class and collective action waivers, jury trial waivers, and other restrictions on employees’ ability to pursue statutory claims. Pre-dispute waivers generally would be invalid. Post-dispute waivers would also be void unless made in the context of a bona fide settlement not initiated by the employer or an agreement entered into upon or following termination of employment. The practical reach is broad; standard clauses in employment agreements, arbitration provisions, compensation plans, and separation packages could all be affected. The bill also recognizes federal preemption, including for arbitration agreements governed by the Federal Arbitration Act. This bill would take effect immediately if enacted.
• Job-Posting Disclosure Requirements/“Ghost Jobs” Bill (S8877) — The bill is intended to address so-called “ghost jobs,” or job postings for positions that an employer does not currently intend to fill. It would impose new disclosure requirements on job advertisements issued by covered parties, defined as employers with at least 100 employees and third-party job-posting entities that, on a single platform, post multiple job vacancies or listings for job seekers to search and apply for, whether on behalf of or independently of employers.

Under the bill, covered parties would have to disclose the anticipated timing for filling a posted position — specifically, whether the employer intends to fill a current vacancy within 90 days, intends to fill it after 90 days, or is accepting applications for potential future positions. Employers also would have to remove a job advertisement within two weeks after the position is filled and, when appropriate, notify a third-party job-posting entity. The bill would impose a $2,500 fine for each violation, with increased penalties for advertisements that remain out of compliance. This bill would take effect immediately if enacted.

• The Wage Payment Integrity Act (S2236A) — The Wage Payment Integrity Act would amend the definition of “wages” in Labor Law Section 190 to include compensation that is not payable at the employer’s “sole and absolute discretion.” To keep a bonus or other compensation outside the definition of wages, the employer would have to clearly and timely notify the employee that the payment is subject to the employer’s sole and absolute discretion. The bill also would create a presumption about the terms of employment if an employer cannot produce written terms required under the Labor Law when an employee or the Commissioner of Labor requests them. The bill would take effect immediately if enacted.
• Remedial Construction of New York Labor Law (S9330/A10365) — This bill would direct courts and agencies to construe the New York Labor Law’s worker-protective provisions liberally consistent with their remedial intent, regardless of whether similarly worded federal provisions (e.g., the FLSA) have been interpreted more narrowly. Because New York’s wage and hour statutes contain substantial overlapping language with the FLSA, the bill is intended to prevent courts from importing that more restrictive federal approach into state cases. Governor Hochul vetoed a broader version of this bill (S7388) in 2025; the scaled-back 2026 version passed with strong bipartisan support (129-12 in the Assembly and 52-7 in the Senate) in June 2026. If enacted, the bill takes effect immediately.
• Artificial Intelligence Annual Reporting (S8706-B) — Another bill would require covered businesses to file annual reports with the New York State Department of Labor on their use of artificial intelligence and its impact on hiring and employment decisions. If enacted, the bill could create new recordkeeping and reporting obligations for employers using AI in recruiting, hiring, workforce planning, or other business functions. The bill would apply to businesses operating in New York with more than 50 employees, as well as all publicly traded companies doing business in the state, regardless of workforce size. If enacted, the bill takes effect immediately, with the first reports due as early as March 1, 2027.
• NDA Disclosure Requirements (A618) — This bill would require employers to inform employees that non-disclosure and non-disparagement clauses in their employment agreements do not prohibit them from communicating with law enforcement, filing charges with the U.S. Equal Employment Opportunity Commission (EEOC), contacting the New York State Division of Human Rights, or communicating with local civil rights agencies. If enacted, the bill takes effect immediately.

Status of potential non-compete ban

Finally, although not as imminent as the developments discussed above, New York lawmakers continue to consider legislation to curtail the use of workplace non-compete agreements.

In June 2023 both chambers of the state legislature passed a sweeping bill (S3100) that would have banned virtually all non-compete agreements — retroactively and prospectively — regardless of an employee’s earnings. Governor Hochul vetoed the bill in December 2023, citing the absence of a salary threshold or other carve-outs that would preserve the use of non-competes for highly compensated executives and in sale-of-business contexts.

Since the veto, legislators have introduced progressively narrower versions of a non-compete ban designed to address the governor’s stated concerns. The most recent iteration, Senate Bill S9759 (with Assembly companion A10023), was introduced in early 2026 by Senator Michael Gianaris. The bill would prohibit employers from requiring or enforcing non-compete agreements against most workers but includes several notable exceptions:

• Highly compensated individuals. Non-competes would remain permissible for individuals earning $500,000 or more in annual cash compensation, adjusted annually for inflation.
• Health-related professionals. Non-competes would be prohibited for all health-related professionals regardless of compensation.
• Sale-of-business transactions. Non-competes entered in connection with the sale or disposition of a business’s goodwill or ownership interest would remain enforceable.
• Other restrictive covenants. Confidentiality, trade secret, and client non-solicitation agreements would be preserved, provided they do not otherwise function as restrictions on competition.

For any non-compete that remains permissible under the bill, the restriction could not exceed one year, and the employer would be required to provide paid garden leave for the duration of enforcement. Covered individuals would have a private right of action to void non-compliant agreements and seek liquidated damages of up to $10,000, plus attorneys’ fees.

S9759 passed the Senate but remained in the Assembly Labor Committee when the 2026 session concluded. The bill may carry over into the 2027 legislative session, which begins in January.

Although a New York State non-compete ban is not imminent, Empire State businesses should nonetheless monitor this issue closely.

What should employers do now?

New York employers should use the remaining months of 2026 to prepare for changes that are already scheduled to take effect and monitor legislation that could require quick action if enacted, including:

• Review repayment and incentive arrangements before February 13, 2027.
• Assess NYC pay-data reporting readiness.
• Review severance agreement templates and procedures.
• Evaluate personnel-record retention and production practices.
• Review job-posting and removal procedures.
• Assess bonus and incentive compensation arrangements.
• Inventory AI use in employment decisions.
• Monitor pending legislation for immediate compliance obligations.

We will continue to monitor these developments and provide updates as New York’s employment law landscape continues to evolve.