In a major victory for organized labor, New York's highest court recently ruled that employers must pay prevailing wages on public works projects, incorporating the mandate into contracts by operation of law—even of the written agreements are silent or explicitly disclaim the requirement.
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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 need for narrowly tailored agreements supported by adequate consideration.
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