New York lawmakers are taking a closer look at the workplace agreements employees are asked to sign and just passed two bills focused on employment contracts. One would broadly restrict contractual waivers of rights under New York’s Labor Law and Human Rights Law, while the other would require employers to clarify that nondisclosure and non-disparagement provisions do not prevent employees from reporting misconduct or seeking legal advice. Both bills have passed the New York Assembly and Senate. If signed by Governor Hochul, both would take effect immediately. Here’s what employers with New York employees need to know so you can be ready to move quickly.

The Bigger Story: Curbing Employment Rights Waivers

The more significant of the two proposals is the Anti-Waiver of Employment Rights Act. The bill would amend both the New York Labor Law and New York State Human Rights Law to invalidate certain express or implied contractual waivers or limitations on an employee’s substantive or procedural rights, remedies, or claims under those laws.

What’s the impact on employers?

The bill targets contract provisions attempting to limit how, when, or whether employees may pursue claims covered by the Labor Law or Human Rights Law – including provisions that shorten limitations periods or restrict collective or class claims – subject to federal preemption arguments.

Notably, the Legislature expressly states that it views these rights as having always been non-waivable and characterizes...

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