New York State End of Year Employment Law Update
KEY TAKEAWAYS:
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Hochul signs laws that protect individuals who request a reasonable accommodation from retaliation and prohibit the use of a person’s consumer credit history in employment decisions
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Hochul also signs laws that memorialize disparate impact theories in the New York State Human Rights Law and that prohibit employers from conditioning repayment of costs for employee training if the individual fails to work for a certain time period
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Hochul vetoes bill that would amend the New York Labor Law to be liberally construed in favor of workers
New York Expands the Human Rights Law to Protect Individuals Who Request a Reasonable Accommodation from Retaliation
On December 5, 2025, Gov. Hochul signed the Reasonable Accommodation Anti-Retaliation Rights Law, which expands the New York State Human Rights Law. This law amends Executive Law Section 296(7) to make it an unlawful discriminatory practice to retaliate against individuals who request a reasonable accommodation.
This law protects individuals requesting reasonable accommodation at job sites, in housing, or in places of public accommodation against retaliation.
The Reasonable Accommodation Anti-Retaliation Act takes effect immediately.
New York Amends General Business Law to Prohibit an Employer or Labor Organization’s Use of a Person’s Consumer Credit History for Employment Decisions
On December 19, 2025, Gov. Hochul signed S.3072.A1316. This law amends Section 380-a of the State’s General Business Law to make it an unlawful discriminatory practice for any employer, labor organization, or employment agency to request or use an individual’s or an applicant’s consumer credit history for employment purposes.
The law defines “consumer credit history” to include any communication by a consumer reporting agency which includes an individual’s consumer credit report, credit score, or information an employer may obtain directly from the individual including details about the person’s credit history, credit accounts, creditworthiness, credit standing, or bankruptcies, judgements or liens.
However, the law includes numerous exceptions which allow requests or use of an individual’s consumer credit history for employment purposes for any of the following reasons:
- It is required by state or federal law;
- The position requires a high degree of public trust, such as police officers, peace officers, or security clearance under federal or state law;
- The position requires access to employer or client digital security systems, trade secrets, intelligence information or national security information; or
- The position requires the authority to sign on behalf of a third-party or enter into an agreement on behalf of the employer valued at ten thousand dollars ($10,000) or more.
This law takes effect 120 days after it becomes law.
New York Amends the State’s Executive Law to Include Disparate Impact as a Method of Establishing Discrimination in Violation of the Human Rights Law
On December 19, 2025, Gov. Hochul signed S.8338.A8699.
This law amends Section 296 of the State’s Executive Law to include disparate impact as a method of proving unlawful discrimination in violation of the Human Rights Law. Under this amendment, employment discrimination may be established by a practice’s discriminatory effect, even if the practice was not motivated by a discriminatory intent. The law defines discriminatory effect as a practice which “actually or predictably” creates a disparate impact on a group of individuals because they are a member of a protected class.
A practice may be lawful if supported by a legally sufficient justification. This exists where the challenged practice is job related to the position and consistent with business necessity, and the business necessity could not be fulfilled by a less discriminatory practice. This justification must be supported by evidence, not merely hypothetical.
The complainant must prove that the practice caused or predictably will cause a discriminatory effect. Once the complainant has met this burden, the respondent may prove that the practice is job related to the position and consistent with business necessity. If the respondent meets this burden, the complainant may still prevail if they can prove that the business necessity could be served by a different practice with a less discriminatory effect.
A legally sufficient justification is not a defense against a claim of intentional discrimination.
This law takes effect immediately and applies to all unlawful discriminatory conduct which occurs on or after the effective date.
New York Enacts the “Trapped at Work Act”
On December 19, 2025, Gov. Hochul, signed S4070/A584C entitled the “Trapped at Work Act” to create New York Labor Law Sections 1050 – 1055.
The law prohibits employers from entering into agreements with workers that require the worker to repay the employer a sum of money if the employee leaves such employment before the passage of a stated period of time. “Worker” is defined broadly by the law to include an employee, independent contractor, extern, intern, volunteer, apprentice, or sole proprietor who provides a service or services to an employer or to a client or customer of an employer on behalf of such employer, and an individual who provides service through a business or nonprofit entity or association. “Worker” does not include vendors of goods.
The law includes the following exceptions:
- Sums of money advanced to a worker by an employer (that do not relate to money used to pay for training to the worker’s employment with the employer);
- Requires the worker to pay the employer for any property it has sold or leased to such worker;
- Requires educational personnel to comply with any terms or conditions of sabbatical leaves granted by their employers; OR
- Is entered into as a part of program agreed to by the employers and its workers’ collective bargaining agreement representative.
This law is effective immediately. Employers that violate the law may be fined by the New York State Department of Labor between $1,000 and $5,000 for each violation.
Governor Hochul Vetoes New Proposed Amendment to Labor Law to Be Liberally Construed in Favor of Workers for Broad Remedial Purposes
On December 19, 2025, Gov. Hochul vetoed the Remedial Construction of New York Labor Law Act (S7388.A7863).
This bill would have amended Article 1 of the State’s Labor Law to add a new section to provide that the New York Labor Law be liberally construed in favor of workers for remedial purposes, regardless of the provisions of other federal laws such as the Fair Labor Standards Act.
Next Steps for Employers
Employers are well advised to review the laws that have been enacted with employment counsel to ensure compliance, and to be mindful of the bill that was vetoed, which may be introduced again in next year’s legislative session.
If you have questions about how this impacts your business, please contact:
- Christopher P. Maugans
- Caroline J. Berdzik
- Stephen C. Mazzara
- Scott R. Green
- Or another member of the Employment and Labor team
Goldberg Segalla’s Alicia Quarterman also contributed to this article.