As we move into 2026, New York employers face a number of new and amended employment laws that impact workplace policies, compliance obligations, and day-to-day operations. This article provides a high-level overview of the most significant changes and highlights key considerations for employers operating in or employing individuals in New York.
Amendments to the New York State Human Rights Law
Disparate Impact Liability Codified
As federal enforcement moves away from recognizing disparate impact theories under federal employment discrimination statutes, Senate Bill S8338 expressly codifies disparate impact liability under the New York State Human Rights Law for claims alleging discrimination occurring on or after December 19, 2025. Under the amendment, an employer may be held liable for a facially neutral policy or practice, even in the absence of discriminatory intent. This amendment therefore clarifies that, while disparate impact claims are increasingly unavailable under federal anti-discrimination law, they remain viable under the laws of certain states, including New York.
Notably, the statute prohibits employment policies and practices that "actually or predictably" result in disparate outcomes. As a result, a challenged practice in New York need not have already caused a disparate impact, so long as it is predicted to produce such an effect.
Retaliation for Reasonable Accommodation Requests Prohibited
The Americans with Disabilities Act (ADA), New York State Human Rights Law (SHRL), and New York City Human Rights Law (CHRL) prohibit employers from retaliating against employees for engaging in protected activity. To date, courts have applied the ADA, CHRL, and SHRL differently, recognizing a request for an accommodation as protected activity under the ADA and CHRL, but not under the SHRL.
On December 5, 2025, that distinction was eliminated. Senate Bill S3398 amended the SHRL by expressly recognizing a request for an accommodation as protected activity, bringing it into alignment with federal and city law and therefore prohibiting retaliation on that basis.
Consumer Credit History Banned in Employment Decisions
Senate Bill S03072 amended the New York Fair Credit Reporting Act to prohibit employers from obtaining or using an individual's consumer credit history in hiring and other employment-related decisions. The amendment largely mirrors New York City's Stop Credit Discrimination in Employment Act, which has been in effect since 2015. The law takes effect on April 18, 2026.
As amended, the statute bars employers from requesting or using consumer credit history—or from discriminating against an applicant or employee with respect to hiring, compensation, or the terms and conditions of employment based on such information—except where a narrowly defined statutory exception applies. Examples of exceptions include (i) any position that is required by law to use an individual's consumer credit history for employment purposes, (ii) any non-clerical position having regular access to trade secrets, intelligence information, or national security information, and (iii) any position with regular duties that allow the employee to modify digital security systems established to prevent the unauthorized use of the employer's or client's networks or databases.
"Stay-or-Pay" Agreements Prohibited
Effective December 19, 2025, New York's Trapped at Work Act (the Act) prohibits employers from requiring workers or applicants to enter into agreements that obligate repayment of training costs or impose financial penalties if the individual resigns before a specified period. The statute defines "worker" broadly to include employees, independent contractors, interns and externs, volunteers, apprentices, and sole proprietors providing services, and excludes vendors.
Despite signing the bill into law, Governor Hochul noted in her Approval Memorandum that the statute contains ambiguities and indicated that discussions with the Legislature to address them are ongoing. For example, the law expressly bars employers from requiring workers "to execute" such "stay-or-pay" agreements on or after the effective date. However, it remains unclear whether the Act will be applied retroactively to agreements entered into before December 19, 2025. The scope and timing of any amendments to the Act remain uncertain, and employers should continue to monitor developments in the coming year.
New York Secure Choice Savings Program Moves Toward Implementation
After years of delay, registration has opened for eligible employers to enroll in the state's Secure Choice Savings Program (the Program), a state-sponsored retirement savings program that operates as an automatic-enrollment Roth IRA for employees who do not have access to a qualified retirement plan through their employer. Private employers are required to participate in the Program if they (i) have been operating for at least two years, (ii) employed 10 or more employees in New York during the prior calendar year, and (iii) do not offer employees a qualified retirement plan.
Beginning in March 2026, New York will require most private-sector employers to either register for the Program at no cost or certify their exemption by reporting information about their existing retirement plan offerings, starting with employers that have 30 or more employees. Employers with 15 to 29 employees or with 10 to 14 employees must register or demonstrate their exemption by May 2026 or July 2026, respectively.
Minimum Wage Increases
In New York City, Long Island, and Westchester County, the minimum wage has increased to $17 per hour, reflecting a $0.50 increase. In the remainder of the state, the minimum wage has risen to $16 per hour, also a $0.50 increase. Beginning in 2027, future minimum wage adjustments will be tied to a three-year average of the applicable regional Consumer Price Index.
New Safe and Sick Leave Requirements in NYC
Amendments to the New York City Earned Safe and Sick Time Act (ESSTA) take effect on February 22, 2026. Under the amendments, employers must provide a separate bank of at least 32 hours of unpaid leave—front-loaded at hire and at the beginning of each calendar year—in addition to the paid leave already required under the ESSTA. The amendments also scale back employer obligations to provide temporary schedule changes under the New York City Temporary Schedule Change Act. For more details about the ESSTA amendments, please see our previous coverage, New Safe and Sick Leave Requirements in New York City.
For more information about new laws affecting employers based in New York or with New York employees, please contact the authors of this alert or any other attorney in Venable's Labor and Employment Group.