With the 2025-2026 legislative session now over, the New York State Senate and Assembly recently passed a handful of bills that, if enacted, would significantly impact New York State employers.
Although approved by both chambers of the Legislature, laws are not enacted until presented to and acted upon by Governor Kathy Hochul. While it’s not a sure thing that the Governor will approve all of these measures, it’s wise to be aware and prepare for these potential changes.
“Ghost Job” Ad Mandatory Disclosures
On June 2, 2026, the New York State Assembly joined the Senate to pass S8877. This bill seeks to address the phenomenon of “ghost job” ads, which are ads for job openings that are non-existent, already-filled, or that the employer does not intend to fill immediately. The bill would add a new section 219-b to the New York Labor Law (NYLL), requiring mandatory disclosures for print or digital job ads by employers with 100 or more employees or by third-party job posting entities. The text of the disclosure, which would be in CAPITAL LETTERS and bold font, would vary based on whether the employer:
- intends to fill the position in 90 days or less;
- intends to fill the position in more than 90 days; or
- does not expect the job to be filled, but is seeking resumes for future review, for future available jobs.
Employers and third parties would also be required to remove job ads within two weeks of a position being filled. The bill would authorize the New York State Department of Labor (NYSDOL) to impose hefty fines of $2,500 per violation, which would double every 30 days the ad is not corrected. The legislation contemplates that this amount would be charged for each print publication or digital platform in which a non-compliant job announcement appears and does not offer an opportunity to cure before the imposition of fines, creating potentially high penalties for widely posted advertisements.
If enacted, S8877 would take effect immediately. Employers should prepare to amend their template job postings and adjust hiring practices to comply with the bill’s obligations.
Personnel File Access and Notices
Both chambers of the New York Legislature also passed S3460. If enacted, the bill would add a new section 210-b to the NYLL. This proposed §210-b is a comprehensive effort at regulating employer recordkeeping that would mandate an extensive list of specific information to be included in every personnel file and would grant current and former employees the right to access their personnel records at least twice a year; more often if negative information is placed in the file. This is a significant departure from the status quo – New York State currently has no legislation regulating personnel files or mandating disclosure to current or former employees.
If the bill is enacted, §210-b would require an employer to provide a copy of an employee’s personnel file within five business days of a written request, at no cost to the employee. Employers could limit employee access to two requests per calendar year, but the cap would not apply to requests made after an employer’s addition of negative information to the file. Employers would have an affirmative duty to notify employees within 10 days of placing any negative information in the employee’s personnel file.
Significantly, the law would require an employer to permit the employee to submit a written rebuttal to, or explanation of, any information in the personnel file. This employee statement would become part of the file and included in any transmission to third parties if the disputed information remains in the file. Further, employees could pursue an action for injunctive relief to remove false information. The law would prohibit retaliation against employees who exercise their rights under §210-b, and, while acknowledging that the law would not supersede a collective bargaining agreement (CBA), it also prohibits any CBA from providing lesser rights to employees than those created by this law.
Under §210-b, employers would need to retain all personnel files for the duration of an individual’s employment and for three years after separation from employment.
The New York State Attorney General could bring an action, at its discretion, against violators and subject them to a fine between $500 and $2,500.
If Governor Hochul signs S3460, the new law would take effect 60 days later. Employers should review their policies and practices surrounding the creation, maintenance, storage, and disclosure of personnel files and consider whether adjustments will be required.
Anti-Waiver of Employment Rights
The Assembly passed S4424A in May, nearly three months after it passed the Senate. This bill would enact the “anti-waiver of employment rights act” by amending the NYLL and New York State Human Rights Law (NYSHRL) to assert that rights and remedies available under these statutes are mandatory and not waivable as a matter of public policy.
The bill’s justification statement cites case law upholding private employment agreements that waive an individual’s inclusion in collective or class actions and agreements to curtail deadlines for state law claims. Also noting that New York City addressed this issue when it prohibited employment agreements that shorten the statute of limitations for certain discrimination claims, the bill purports to clarify that prospective waivers of the NYLL and NYSHRL “have been and are henceforth invalid.” The legislation would take effect immediately upon enactment if approved by the Governor.
The parallel amendments to the NYLL and NYSHRL are broadly drawn to prohibit all contractual provisions – whether express or implied – that waive or limit any right, remedy, or claim potentially available under those statutes. There are exceptions for separation and post-employment agreements and for settlement agreements, if the underlying dispute is raised in good faith by the employee and waiver is mutually agreed upon.
Importantly, employment agreement provisions invalid under S4424A would not nullify the employment agreement in its entirety, thanks to a severability clause within the proposed statute. Moreover, the legislation explicitly states it would not apply where its provisions are preempted by federal law. This would limit its reach, particularly with regard to arbitration agreements governed by the Federal Arbitration Act.
No Severance Ultimatums
A related bill also passed the Senate in February and won Assembly approval only on June 1, 2026. S372A seeks to add a new section 215-d to the NYLL, to require employers offering severance agreements to include certain provisions. Namely, severance agreements that would require an employee to release waivable claims would need to include (i) a notice that the employee has the right to consult an attorney; (ii) a consideration period of at least 21 days for the employee to decide whether to execute the agreement; and (iii) a revocation period of at least seven calendar days that delays the effective date of the agreement. The statute allows employees to knowingly and voluntarily shorten the consideration period, as long as there is no threat or inducement to coerce the employee to do so.
These proposed mandates mirror requirements for agreements covered by the federal Age Discrimination in Employment Act as amended by the Older Workers Benefit Protection Act and thus are already required for severance agreements with employees age 40 or older covered by the federal age discrimination laws. New York law would eliminate this age differential.
If approved by the Governor, the “No Severance Ultimatums Act” would take effect immediately.
Artificial Intelligence Annual Reporting
Lastly, the New York State Senate joined the Assembly in passing S 8706-B, which would require covered businesses to annually report their AI use. Covered businesses are those doing business in New York State that either employ more than 50 people or are a publicly-traded company of any size. Covered businesses would need to report to NYSDOL the impact of AI on hiring and the nature of their AI use in the preceding calendar year by March 1st annually.
Mandatory usage reports would include employment data, including an estimate of the number of employees displaced or hired, or whose hours were reduced or increased, due to AI. Usage reports would also require information on the frequency of AI use as well as measures in place for oversight and risk reduction. NYSDOL would use these reports to publish an annual report analyzing the impact of AI on the state’s economy. Under S8706-B, covered businesses that fail to report as required would be subject to a fine of up to $500 per day of violation.
S8706-B would take effect immediately upon enactment. If approved, that could set up an initial reporting deadline of March 1, 2027, for covered employers.
How to Prepare
Because four of the five bills as approved by the Legislature would take effect immediately upon enactment, employers should monitor these bills and prepare for compliance in anticipation of their potential enactment in the latter half of 2026.
Given past experience, the Legislature may not deliver these measures to Governor Hochul until late in the year. Once a bill is delivered to the Governor, she has 10 days to either sign it into law or veto; sometimes Governor Hochul signs quickly after receiving a bill, and sometimes she signs with a demand for adjustments. We’re tracking all of these bills and will keep you posted.
Staff Attorney Elizabeth A. Ledkovsky contributed to this report.
Blog Editors
Authors
Member of the Firm
Associate