New York Legislature Approves Anti-Waiver of Employment Rights Act, 6-15-2026

The New York State Legislature has passed the Anti‑Waiver of Employment Rights Act (S.4424/A.5411), which, if signed by Governor Kathy Hochul, would make rights and protections under the New York Labor Law and the New York State Human Rights Law non‑waivable as a matter of public policy, subject to statutory exceptions and federal preemption principles. The bill is aimed at agreements that attempt to limit statutory rights or remedies, including provisions that shorten limitations periods, restrict enforcement mechanisms, or otherwise interfere with an employee’s ability to pursue claims.

What the bill would do
The legislation would prohibit employers from requiring employees, through an employment agreement, arbitration clause, settlement agreement, release, or similar private agreement, to waive, limit, or otherwise foreclose substantive or procedural rights and remedies under the Labor Law or Human Rights Law, except where the statute permits. Those exceptions include settlements of good-faith bona fide disputes not raised or initiated by an employer, certain agreements entered into upon or after termination of employment, certain collective bargaining agreement provisions, and circumstances where federal law preempts application of the statute.

Because the bill broadly prohibits contractual provisions that waive or limit substantive or procedural rights and remedies, employers may face challenges to provisions that indirectly restrict the exercise of statutory rights, such as shortened limitations periods or other contractual restrictions on enforcement. In practical terms, the bill could limit the enforceability of contractual provisions that courts have previously upheld in certain circumstances, including shortened limitations periods and other provisions viewed as narrowing statutory employment protections.

Why this matters
If signed into law, the legislation could affect a broad range of commonly used documents, including offer letters, employment agreements, severance agreements, settlement agreements, arbitration provisions, and handbook acknowledgments. It may also invite challenges to existing agreements that contain shortened limitations periods or broad waiver language, particularly where those provisions are used to limit remedies available under the Labor Law or Human Rights Law. The legislation includes specific exceptions for certain collective bargaining agreement provisions and circumstances in which a waiver is expressly authorized by statute, although questions regarding the scope of those exceptions may ultimately be addressed through future litigation.

Because the bill has passed the Legislature but has not yet been signed by the Governor, employers should continue to monitor whether further guidance develops regarding application, carveouts, and federal preemption issues.

Potential Impact
If enacted, the Anti-Waiver of Employment Rights Act could represent a significant shift in New York employment practice by codifying the Legislature’s position that rights and remedies under the Labor Law and Human Rights Law generally cannot be privately waived or contractually narrowed except in limited circumstances.

Next Steps
Employers should consider beginning a targeted audit of their standard templates, including offer letters, separation agreements, settlement agreements, arbitration clauses, and release forms, to identify language that could be viewed as limiting or narrowing statutory rights. They should also review and consider revising any agreement that includes broad waiver or limitations language to prepare for potential compliance obligations under the new statute.

Authors:
Siobhan Healy
Partner

Noorali Soomro
Attorney