Employment Law Observer

New York employers: read our comprehensive recap of the key regulations taking effect in 2025 that your business should take note of.

On November 16, 2024, the New York Clean Slate Act (the "Act") went into effect. Under the Act, certain conviction records will be automatically sealed from public access after a specified time period. The New York State Unified Court System is responsible for sealing all eligible existing conviction records, after which such convictions will become inaccessible.

On September 4, 2024, Governor Kathy Hochul signed the Retail Worker Safety Act  (the "Act") into law. The Act, which takes effect on March 3, 2025, requires retail employers to develop and implement programs to prevent workplace violence. It also requires retail employers with 500 or more retail employees nationwide to install panic buttons by January 1, 2027.

On August 12, 2024, the Second Circuit held that a plaintiff's hostile work environment claims were subject to the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 ("EFAA"), even though the plaintiff's claims arose before the EFAA's enactment.

On March 20, 2024, the Second Circuit dismissed a remote employee's discrimination claim brought under the New York State Human Rights Law (NYSHRL). The Court held that the employee's discrimination did not meet the "impact test" because the impact was only incidentally felt in New York.

On May 11, 2024, a new law went into effect, amending New York City Administrative Code §§ 8-109 and 8-502. The law prohibits provisions in agreements that shorten the timeframe an employee has to file a claim for unlawful discriminatory practices, harassment, or violence under the New York City Human Rights Law ("NYCHRL"). 

On April 20, 2024, New York legislators approved the New York State 2024-2025 Budget. The Budget included three amendments to New York Labor Law affecting all New York employers.

On March 1, 2024, the Second Circuit affirmed the judgment of the Southern District of New York in Brian La Belle v. Barclays Capital Inc, No. 23-448 (2d Cir. 2024).

On March 14, 2024, the New York Court of Appeals held that nonresident prospective employees who seek employment opportunities in New York State or New York City and are denied due to discriminatory conduct are eligible to assert claims under the New York State Human Rights Law ("NYSHRL") and New York City Human Rights Law ("NYCHRL").

On November 22, 2023, Governor Kathy Hochul signed the “Freelance Isn’t Free Act” into law. The Act, which is similar to the New York City law containing the same name, is designed to provide protections for freelance workers (i.e., independent contractors). The Act will go into effect on May 20, 2024, and will apply to work contracts entered into on or after that date.

Starting July 1, 2024, New York City employers will be required to distribute a Workers' Bill of Rights to all their current employees and new hires on or before their first day of work.

Governor Kathy Hochul signed a bill into law, effective on November 11, 2023, amending Section 590 of the New York Labor Law.

New York State recently enacted two new employment law bills. The first law extends the statute of limitations for claims of discriminatory practices under the New York State Human Rights Law. The second law expands restrictions on non-disclosure provisions in settlement agreements for claims of discrimination, harassment, or retaliation.

On September 15, 2023, the New York City Department of Consumer and Worker Protection issued amended rules relating to the New York City Earned Safe and Sick Time Act (“ESSTA”). The amendments codified the New York City Council statutory amendments to the ESSTA in 2020, which was designed to align the ESSTA with the New York State Paid Sick Leave Law. The amended rules went into effect on October 15, 2023.

Governor Kathy Hochul signed a bill into law last month that amended the New York State Labor Law by adding a new section (203-f). The law prohibits any clause in an employment agreement that requires employees to assign their inventions to their employer if the employee created them on their own time and without using the employer’s resources or trade secrets.

New York Governor Kathy Hochul signed a bill into law last month that amended New York State Labor Law, prohibiting employers from requesting or requiring employees and job applicants to disclose their social media account information. The law also prohibits employers from retaliating against employees or job applicants who refuse to disclose their social media account information. 

New York Governor Kathy Hochul signed a bill last month that amended the New York State's Human Rights Law to state that interns are protected from unlawful discrimination based on gender identity or expression. Since 2014, the New York State Human Rights Law has protected interns from unlawful discrimination based on their protected class status. In 2019, gender identity or expression was added as a protected class throughout the Human Rights Law, except in the intern provision. The newly enacted law appears purposed to correct an unintended oversight and to underscore that gender identity or expression is a protected class for interns.

Earlier this year, Mayor Eric Adams signed a bill amending the New York City Human Rights Law, prohibiting discrimination on the basis of an individual's height or weight. Set to go into effect on November 22, 2023, the bill does permit an employer to consider height or weight under the following limited situations:

On June 20, 2023, the New York State Legislature voted to pass a bill that will ban almost all non-compete agreements. Currently awaiting Governor Kathy Hochul's signature, the bill prohibits an "employer or its agent, or the officer or agent of any corporation, partnership, limited liability company, or other entity" from seeking, requiring, demanding or accepting a non-compete agreement from a covered individual. Additionally, the bill voids "every contract by which anyone is restrained from engaging in a lawful profession, trade or business of any kind."

On May 3, 2023, Governor Kathy Hochul signed the New York State 2024 Budget Agreement into law, which contained increases to the State's minimum wage. New York State's minimum wage rate is divided into two regions: (1) "Downstate," which consists of New York City (New York, Kings, Queens, Bronx, and Richmond Counties), Nassau County, Suffolk County, and Westchester County; and (2) "The remainder of the State."