New York lawmakers closed out the 2026 legislative session with several significant workplace bills that turn up the heat on employers’ compliance to-do lists. Collectively, the bills impact nearly every aspect of employment with several expected to take effect immediately upon enactment (and one already enacted and in effect!).
Employers need not panic yet—the clock starts ticking only once the bill is delivered to Governor Hochul, whereupon she generally has 10 days to sign the bill, veto it, or allow it to become law without a signature. Governor Hochul also may sign a bill conditioned on the addition of chapter amendments when lawmakers return next session. At the moment, with the exception of one bill that maintains the status quo on permissible wage deduction exceptions, the remaining bills have yet to be delivered to the Governor. However, since many of the bills are expected to be delivered in the next few months, employers should prepare now for compliance.
To keep your organization out of hot water, review these highlights of the bills and some key compliance steps you should take with respect to the following:
- Employment & Separation Agreements
- Training and Recordkeeping
- Recruitment & Hiring Practices
- Wage & Hour Rules
- Use of Artificial Intelligence
- Workers’ Compensation Benefits
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1. Proposed Bills Impacting Employment & Separation Agreements
Establishes “No Severance Ultimatums Act” (S372A)
Status: Passed both houses as of June 1, 2026.
Anticipated Effective Date: Immediately upon enactment.
Requirements: Employers offering severance agreements that require an employee to release waivable claims against the employer must notify the employee of their right to:
- Consult with an attorney;
- Consider the agreement for at least 21 calendar days;
- Revoke the agreement within seven calendar days of execution, and that the agreement will not be effective or enforceable until the revocation period expires; and
- Sign the agreement before the 21-day consideration period expires, provided certain conditions are met.
Severance agreements that fail to comply with these requirements will be void and unenforceable.
Establishes “Anti-Waiver of Employment Rights Act” (S4424A)
Status: Passed both houses as of May 13, 2026.
Anticipated Effective Date: Immediately upon enactment.
Changes: With limited exceptions, the bill would invalidate any express or implied contractual provision that waives or limits an employee’s rights, remedies, or claims under the New York Labor Law and/or New York Human Rights Law. While the bill could affect certain arbitration agreements that limit employees’ statutory rights or remedies, it provides a carve-out where application would be preempted by federal law (e.g., the Federal Arbitration Act). Other limited exceptions include certain settlements of good faith bona fide disputes, and agreements entered upon or following an employee’s termination.
Requires Notice for Non-Disclosure & Non-Disparagement Provisions (A618)
Status: Passed both houses as of February 4, 2026.
Anticipated Effective Date: Immediately upon enactment.
Requirements: Employers would be required to inform employees that non-disclosure or non-disparagement provisions in their employment contracts do not prohibit them from speaking with law enforcement, the Equal Employment Opportunity Commission, the State Division of Human Rights, a local commission on human rights, or the employee’s attorney.
2. Proposed Bills Impacting Training & Recordkeeping
Creates Employee Right to Access Personnel Records (S3460)
Status: Passed both houses as of May 19, 2026.
Anticipated Effective Date: 60 days after enactment.
Requirements: For current and former employees, employers would be required to:
- Notify an employee within 10 days of placing any negative information in their personnel record;
- Provide employees with a copy of their personnel record at no cost within 5 business days of a written request;
- Allow employees to review their personnel record up to twice annually (requests triggered by negative filings do not count toward the annual reviews);
- Allow employees to submit a written rebuttal of disputed information, which must be included in the file if the record is transmitted to a third party; and
- Retain personnel records for three years following termination.
Establishes “Neurodiversity Training Pledge” Program (A38)
Status: Passed both houses as of June 4, 2026.
Anticipated Effective Date: 90 days after enactment.
Requirements: The bill would require the New York State Department of Labor to establish a voluntary neurodiversity training and certification program for employers to support an inclusive workplace and promote techniques and strategies to increase neurodiversity in the workplace.
Requires Acknowledgment of Sexual Harassment Prevention Policy and Training (A368A)
Status: Passed both houses as of May 19, 2026.
Anticipated Effective Date: 90 days after enactment.
Requirements: Employers would be required to:
- Obtain a signed and dated written or electronic acknowledgment each time they provide written notice of their sexual harassment prevention policy and training information;
- Provide the acknowledgment in English and the employee’s primary language;
- Retain the acknowledgment for six years; and
- Provide at least seven days’ advanced written notice of any changes to the policy or training information.
3. Proposed Bill Impacting Recruitment & Hiring
Requires Job Advertisement Disclosures (S8877)
Status: Passed both houses as of June 2, 2026.
Anticipated Effective Date: Immediately upon enactment.
Requirements: Covered employers and third-party job posting entities would be required to:
- Include specified language in job advertisements disclosing whether or not a posting is for a current vacancy, and if so, when the position is expected to be filled; and
- Remove advertisements within two weeks after a position is filled or the posting expires.
4. Proposed Bills Impacting Wage and Hour Rules
Establishes “Wage Payment Integrity Act” (S2236A)
Status: Passed both houses as of March 30, 2026.
Anticipated Effective Date: Immediately upon enactment (applies to all actions filed on or after the effective date).
Requirements: The bill would expand the New York Labor Law’s definition of “wages” to include any employment compensation that is not payable at the employer’s sole and absolute discretion. For any forms of compensation excluded from “wages”—including discretionary bonuses—employers would be required to notify the employee that the employer has sole and absolute discretion to decide whether or not to pay it.
Extends Temporary Wage-Deduction Exceptions (A10342)—NOW EFFECTIVE!
Status: Enacted on June 26, 2026.
Effective Date: Immediate upon enactment.
Changes: The bill extends for another two years New York’s temporary wage-deduction framework, which allows wage deductions (1) authorized by law, (2) expressly authorized by the employee for their benefit, (3) to recoup wage overpayments caused by mathematical or clerical error, or (4) to repay wage or salary advances.
5. Proposed Bill Impacting Artificial Intelligence (AI)
Requires Annual Reporting on AI Workplace Impact (A9581B)
Status: Passed both houses as of June 4, 2026.
Anticipated Effective Date: Immediately upon enactment.
Requirements: Covered businesses would be required to submit annual reports to the New York State Department of Labor detailing the impact of AI on hiring and the nature of AI use in the preceding year, including estimates of employees displaced, hired, and positions not filled due to AI use; and information regarding AI use objectives, human oversight of AI use, protections for personal data, and existing measures for oversight and risk reduction related to AI use.
6. Proposed Bill Impacting Workers’ Compensation Benefits
Bans Withholding Workers’ Comp Benefits Based on Labor Market Attachment (A8482A)
Status: Passed both houses as of June 4, 2026.
Anticipated Effective Date: Immediately upon enactment.
Requirements: Employers and workers’ compensation carriers would be prohibited from withholding, diminishing, or conditioning workers’ compensation benefits based on an injured worker’s voluntary withdrawal from the labor market (i.e., not seeking alternate employment that their injury or illness does not preclude them from performing).
Employer Takeaways
The broad impact of these bills could significantly reshape workplace obligations throughout the employment life-cycle (and beyond!). Since many of the bills take effect upon enactment, employers can stay out of the hot water by taking the following steps:
- Review employment agreements, severance agreements, confidentiality provisions, and workplace policies to prepare for potential changes affecting releases, waivers, confidentiality, employee rights, and required notices.
- Evaluate hiring, recruiting, onboarding, and AI practices to ensure compliance with anticipated job-posting disclosures, AI reporting obligations, and evolving hiring requirements.
- Update HR recordkeeping, personnel file, and training procedures to address expanded personnel-record access rights, acknowledgment requirements, and retention obligations.
- Audit payroll, bonus, and wage-payment practices to ensure compensation plans, discretionary bonuses, and wage deductions comply with proposed amendments to the New York Labor Law.
- Monitor the status of pending legislationand prepare for implementation now as several bills would take effect immediately upon enactment or shortly thereafter.
If you have any questions related to any bills or need assistance preparing for compliance, please reach out to the NFC Attorney with whom you typically work or call us at 973.665.9100.