New Compliance Obligations for New York Employers, by Matthew Cohen, Esq. and Keith Gutstein, Esq., 1-28-2026
With the New Year well upon us, New York employers face a number of compliance obligations, some of which took effect in December, while others were enacted or approved late last year and will take effect at different points in 2026.
Below is a summary of key legislative and regulatory developments affecting New York employers.
New York State
Reasonable Accommodation Anti-Retaliation Act (S3398 / A4898):
Effective Dec. 5, 2025
This law amends the New York State Human Rights Law (NYSHRL) to expressly prohibit retaliation against individuals who request a reasonable accommodation. Employers may not take adverse action—including discipline or discrimination—against an employee or applicant based solely on a request for accommodation. The law revises Section 296(7) of the New York Executive Law to confirm that requesting a reasonable accommodation is a protected activity.
To read KD’s detailed law alert click here.
Disparate Impact Liability Codified (S8338 / A8699):
Effective December 19, 2025
This legislation codifies a disparate impact standard under NYSHRL. It clarifies that an employer’s policy or practice can be considered discriminatory if it has a negative impact on a protected group—even if the employer did not intend to discriminate. In order to remain lawful, the policy or practice at issue would need to be supported by a legally sufficient justification, which requires that the policy or practice “is job related for the position in question and consistent with business necessity” and “the business necessity could not be served by another practice that has a less discriminatory effect.”
To read KD’s detailed law alert click here.
Trapped at Work Act (S4070B/A584C):
Effective Dec. 19, 2025 (chapter amendments can postpone this date but for now the law remains in effect)
This law restricts employer use of “stay-or-pay” employment promissory notes and training repayment provisions that can trap workers in unwanted jobs. Under the law, employers generally may not require workers to enter agreements obligating them to repay training costs or other sums if they leave employment before a specified period. Governor Hochul signed the law on December 19, 2025, and it took effect immediately. However, she noted ambiguities in the statute and signed it via a conditional chapter amendment process. In response, on January 6, 2026, the New York State Assembly introduced a proposed chapter amendment that would revise several provisions and change the effective date of those revisions to December 19, 2026 if the amendment is adopted. Until that amendment is enacted, the law remains in effect as originally enacted.
To read KD’s detailed law alert click here.
Ban on Consumer Credit History in Employment Decisions (S3072/A1316):
Effective April 18, 2026
This legislation will prohibit an employer or potential employer from requesting or using for employment purposes a job applicant or employee’s consumer credit report in his or her decision to hire, terminate, promote, demote, discipline, compensate, or in setting the terms, conditions, or privileges of employment with limited exceptions such as requesting or receiving consumer credit history information pursuant to a lawful subpoena, court order, or specific law enforcement investigation.
Opioid Antagonists in First Aid Kits (S5922/A2725):
Effective June 10, 2026
This legislation requires private employers that are federally mandated to provide first aid supplies in the workplace to include an opioid antagonist in those supplies. It also mandates that the Department of Labor issue rules addressing workplace quantity requirements and training, as per the Governor’s letter of approval.
To read KD’s detailed law alert click here.
New York’s Secure Choice Retirement Savings Program: New York employers with 10 or more employees who currently do not offer a qualified workplace retirement plan should start preparing for the impending implementation of the Secure Choice Savings Program — a state-mandated retirement savings program that aims to expand access to retirement savings by requiring covered employers to facilitate the automatic enrollment of eligible employees, who can then contribute to Roth IRAs through payroll deduction. Registration compliance deadlines vary based on employer size:
- March 18, 2026, for employers with 30 or more employees
- May 15, 2026, for employers with 15–29 employees
- July 15, 2026, for employers with 10–14 employees
To read KD’s detailed law alert click here.
Paid Family Leave for Construction Workers (A4727/S50):
Effective January 1, 2027
This legislation significantly expands access to Paid Family Leave (PFL) benefits for unionized construction workers. The law creates a new eligibility standard for construction employees who work for multiple employers pursuant to a collective bargaining agreement (CBA). Such employees will become eligible for PFL if they have been in employment for at least 26 of the last 39 weeks with a covered employer signatory to a collective bargaining agreement. The measure would make PFL available to qualifying workers engaged in construction, demolition, reconstruction, excavation, rehabilitation, repairs, renovations, alterations, or improvements for multiple employers.
To read KD’s detailed law alert click here.
New York City
Amendments to the Earned Safe and Sick Time Act (ESSTA) and Temporary Schedule Change Act (TSCA)
Effective February 22, 2026
Approved by the New York City Council late last year, these amendments impose several new obligations on covered employers, including a requirement to provide employees with an additional 32 hours of unpaid safe/sick time upon hire and on the first day of each calendar year.
To read KD’s detailed law alert click here.
Pay Data Reporting Requirements
On December 4th, the New York City Council overrode Mayor Eric Adams’ veto to enact Int. 982-A and Int. 984-A, amending the New York City Administrative Code to require pay data reporting by certain large private employers.
- Int. 982-A requires private employers with more than 200 employees in New York City to submit an annual electronic pay data report to a designated agency, including demographic and occupational information.
- Int. 984-A authorizes the designated city agency to conduct an annual pay equity study on private employers with 200 or more employees in New York City to see if disparities in compensation based on gender, race, or ethnicity exist.
The law is effective immediately, but certain steps need to be taken before employers can start submitting their data, which can take up to three years after the effective date.
Kaufman Dolowich continues to closely monitor these legislative developments and will provide updates as additional guidance and regulations are issued.
Authors: Long Island Partner Matthew Cohen and Keith J. Gutstein, Chair of KD’s Labor and Employment Law Practice Group and Co-Managing Partner of the Long Island Office
