A high-stakes federal showdown over the boundaries of state power and federal labor law supremacy took an aggressive and unexpected turn on Monday in a Binghamton, New York, federal court.
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The New York Court of Appeals unanimously held that wage mandates in public works projects apply despite silent contracts or express disclaimers. The top court also invalidated one-year litigation limits as a violation of public policy.
This year, New York passed four major labor bills expanding employee rights and employer obligations, including bans on waivers of state rights, employee access to personnel records, rules against false “ghost” job postings, and mandatory AI impact disclosures for large companies. Employers should proactively review policies, as some measures could take effect immediately, signaling a more regulated employment environment.
The authors discuss major federal, New York, and nationwide developments affecting restrictive covenants since 2025, including the FTC’s shift to targeted enforcement, New York’s advancing S4641 bill and new Trapped at Work Act, and a wave of state legislation tightening or, in some cases, expanding enforceability. Courts continue to scrutinize overbroad covenants, reinforcing the...
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