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New York Law Expanding PERB’s Jurisdiction Faces Multiple Legal Challenges

Knowledge

New York Law Expanding PERB’s Jurisdiction Faces Multiple Legal Challenges

KEY TAKEAWAYS:

  • New York recently enacted a law permitting the New York Public Employment Relations Board to assert its jurisdiction over private employers

  • The National Labor Relations Board has filed a lawsuit challenging the law, arguing that it is preempted by the Supremacy Clause of the U.S. Constitution

  • Amazon has also filed a lawsuit challenging the law on similar grounds

On September 5, 2025, New York Senate Bill S.8034A was signed into law by Gov. Kathy Hochul, effective immediately. The law amends Section 715 of the New York State Labor Relations Act, permitting the New York Public Employment Relations Board (PERB) to assert jurisdiction over private-sector employers. PERB is an agency created by Section 205 of New York Civil Service Law, which traditionally oversees public-sector labor relations.

The law’s sponsor memo indicates that its purpose is to ensure “employees still receive protections by the National Labor Relations Act” when the NLRB is unable to successfully assert jurisdiction. Currently, the NLRB lacks a quorum, which limits its authority.

In response to the law’s enactment, on September 12, 2025, the NLRB filed a lawsuit against the State of New York and PERB in the U.S. District Court for the Northern District of New York. The lawsuit seeks declaratory and injunctive relief to prevent the enforcement of the law. The NLRB argues (1) that the law is preempted by the NLRA under the Supremacy Clause of the United States Constitution; and (2) that the law usurps the NLRB’s authority to regulate areas which are “explicitly reserved for federal oversight.”

On September 30, 2025, the NLRB filed a motion for preliminary injunction to enjoin New York State and PERB from implementing and enforcing the law. The NLRB argues that the law “creates a parallel regulatory system that undermines the federal labor policy Congress designed to be national in scope.” Stated differently, the NLRB argues that its congressionally granted jurisdiction over private employers has been directly displaced by PERB under the law. Moreover, the NLRB argues that in the absence of a preliminary injunction there is a threat of imminent irreparable harm since the law operates to displace the NLRB’s jurisdiction even after its quorum is restored. The NLRB argues that a preliminary injunction is in the public’s best interest and that issuing an injunction is favorable because the NLRB will continue to process labor practice cases and PERB can continue to oversee public-sector labor matters.

On September 22, 2025, Amazon also filed a lawsuit in the U.S. District Court for the Eastern District of New York against PERB and PERB officials, seeking to strike down the law for similar reasons as the NLRB. In response, PERB has filed a motion seeking to halt this lawsuit, given the parallel lawsuit that the NLRB has already filed. Meanwhile, certain unions have filed a motion to intervene in both lawsuits seeking to have the law upheld, and certain business associations have sought to file briefs in both lawsuits in support of the arguments that the law should be struck down. These legal battles are expected to play out over the next several months.

Lawmakers in other states have already adopted or considered laws which displace the NLRB’s jurisdiction. For example, California Gov. Gavin Newsom signed a bill into law which will expand the jurisdiction of the California PERB to private-sector employees, effective in 2026. Additionally, Massachusetts is considering a law which would make key aspects of the NLRA part of state law. Similar challenges to the legality of bills in other states are expected.

New York employers should continue to monitor developments in these cases, assess their labor policies, and prepare for possible situations where PERB seeks jurisdiction over private-sector matters.

If you have questions about this, or any other employment and labor topic, please contact:

Goldberg Segalla’s Alicia Quarterman also contributed to this article.