Ready for your next slate of HR compliance updates? New York has moved on several employment law fronts this year. Some changes we’ve previously discussed are already in effect, others are approaching fast, and at least one that’s still developing but worth watching now. This post covers what’s active, what’s coming, and what you can do this week to stay ahead of it. Three New Things You Need to Know NY Secure Choice: The Retirement Savings Deadline Is Now New York’s Secure Choice Savings Program requires covered employers to offer employees access to a state-sponsored retirement savings option through payroll deductions. Employees are automatically enrolled at a 3% contribution rate, but they can opt out or adjust their contribution at any time. The employer’s role is primarily administrative: you facilitate access, not manage investments. Deadlines are staggered by size: 30+ employees: Required to register by March 18, 2026 (already passed) 15–29 employees: Required to register by May 15, 2026 (already passed) 10–14 employees: Must register by July 15, 2026 Already have a qualified retirement plan? You’re exempt from participation. But exemption is not assumed, and you should certify that exemption through the program’s online portal. If you have 10 or more employees in New York, you may already be past a registration deadline — and if not, one is coming up fast. There are currently no active financial penalties for non-compliance, but a penalty structure is under review by the state. The smarter move is to get into compliance now, while the process is still straightforward. This week’s action item: If you have 10–14 employees and haven’t registered or certified your exemption yet, visit the NY Secure Choice portal and complete that step before July 15. The Trapped at Work Act: Delayed, But Coming Maybe you’ve paid for certifications, sent employees to training programs, or covered the cost of onboarding a specialized hire. Some businesses include repayment agreements in their offer letters — essentially requiring employees to pay back training costs if they leave within a certain timeframe. New York is changing the rules on that. The Trapped at Work Act, signed and delayed by Governor Hochul in February 2026, is a law which bans employers from requiring repayment of certain training costs when an employee leaves before a set period. The scope of this law is broad. It covers employees, independent contractors, interns, volunteers, apprentices, and sole proprietors. If your offer letters or employment agreements include any repayment language tied to training, now is the time to make needed revisions and get the legal review you need. This week’s action item: Pull your current offer letter template. Flag any language that requires employees to repay training costs. Put a review on the calendar with your HR partner or employment attorney before year-end. Disparate Impact Is Now Codified in New York This one is more nuanced — but it may affect more businesses than people realize. New York State recently amended the New York State Human Rights Law (NYSHRL) to explicitly codify disparate impact liability. What does that actually mean? Any policy or practice doesn’t have to be intentionally discriminatory to be unlawful. If it has a disproportionate negative effect on a protected group, it can be challenged under state law. Once that kind of impact is identified, the burden shifts to the employer to show that the practice is job-related and necessary for the business. Think about policies you may have in place right now: Attendance requirements that penalize frequent absences Background check criteria that automatically screen out certain applicants Minimum education or credential requirements that go beyond what the job actually demands Each of these could face scrutiny under this standard — even if they were written with the best intentions. This is also notable because it provides a clear state-level path for claims that might previously have gone to the EEOC, as the federal government has shifted its approach to disparate impact enforcement. This week’s action item: Review your most frequently used hiring and attendance policies. Ask the question: does this policy have a different impact on one group than another? If the answer is unclear, that’s worth a conversation with your HR or legal advisors. Three Updates From Earlier This Year Credit History Ban: Now in Effect Earlier in 2026, we flagged the New York credit history ban as something to watch. As of April 18, 2026, it’s the law. Employers in New York are now prohibited from requesting or using a job applicant’s consumer credit history for employment purposes. Background screening companies are also restricted from providing that information unless a specific exemption applies. If you haven’t already reviewed your background check process and updated your screening criteria, now is the time. This rule applies to both new hires and existing employees. Noncompete Ban: Still Pending, But Gaining Momentum A bill introduced in the New York State Senate in April 2026 would prohibit most non-compete agreements for employees earning under $500,000 per year. The bill is currently in committee, and Governor Hochul has not publicly indicated her position on it. It is not law yet — but it has been introduced before, and the momentum behind it is real. If your business relies on non-compete clauses to protect client relationships or trade knowledge, this is worth watching closely. It’s also a good reason to have a broader conversation about how you protect your business interests beyond non-competes. Minimum Wage: Looking Beyond 2026 2026 is the final year that minimum wage increases in New York follow the existing, predetermined schedule. Starting in 2027, minimum wage increases will be tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. That means future increases will reflect real-time inflation rather than a fixed legislative calendar. For businesses doing workforce planning or multi-year budgeting, this is worth building into your projections. The amount of each increase will be less predictable year-over-year. One Big Thing on the Horizon New reporting requirements have been proposed to measure the impact of artificial intelligence (AI) on workforces and workforce planning. Seen any news stories of businesses conducting mass layoffs and citing developments in AI as the justification for reducing their human workforce? That’s what this aims to track. New York State is considering legislation (Bill S8706) that would require covered businesses to annually report to the NYS Department of Labor on AI’s measurable impact on their workforce. This would answer questions like how many employees were displaced or had hours reduced because of AI, how many people were hired or had hours increased, and how many open positions the company simply decided not to fill because AI now handles that work. The bill hasn’t been signed into law yet, but the direction is clear. New York wants hard numbers on whether AI is shrinking headcount, and by how much. If your business is using AI to automate tasks previously done by employees — or factoring AI capabilities into decisions about whether to backfill roles — it’s worth starting to document those decisions now. Understanding where and how AI is influencing your workforce planning will make future compliance significantly easier. We’re Here to Make Compliance Understandable Compliance doesn’t have to be overwhelming. It works best when it’s part of a rhythm — regular check-ins, clear documentation, and the right people in your corner. The goal isn’t perfect compliance overnight. The goal is to keep moving forward, informed. If any of these updates raise questions about your current policies or agreements, our team at Employer Services Corporation is happy to be a resource. That’s the kind of work we do every day for businesses across Western New York.