Labor law moves fast. If you don’t stop to check in once in a while, it’s easy to miss something. That’s why our team writes quarterly compliance updates to help employers understand what changes are ahead, and what they can do today. Each new year tends to be a key starting point for new labor law regulations, so let’s brush up on some changes since our last update. New York State Requires Personnel Records Accessibility Effective November 9, 2026, employers in New York State will be required to allow current and former employees the ability to access, review, and challenge information contained in their personnel records. Personnel records are defined as “a record kept by an employer that identifies an employee, to the extent that the record is used or has been used, or may affect or be used, relative to that employee’s qualifications for employment, promotion, transfer, additional compensation, or disciplinary action.” Employers may limit an employee to two requests per year, and once a request is made, there will be a certain window to provide those documents to the requesting employee. Employees will gain the right to dispute any information placed in their file, if that information could lead to the possibility that the employee will be subject to disciplinary action. Employers will be required to notify employees when any negative information is placed in their file. As part of this, employers are not required to create a personnel file or produce new documents beyond the records they currently maintain. Governor Hochul signed this legislation in September under a chapter amendment. It is expected that additional clarification regarding the creation of files, the scope of records, notice and response deadlines, and other definitions and enforcement will be determined once the next legislative session begins in early 2027. Right now, employers should be prepared to update their personnel records policies and establish procedures to comply with the new regulation before the November 8 effective date. AI Impact Reporting Is One Signature Away Earlier this year, the AI workforce reporting bill was still a proposal working its way through Albany. Things are escalating quickly on this front. The AI Labor Information Act (S8706-B) passed votes in the New York State Senate and Assembly in June. Now this bill only needs the governor to sign it, or simply decline to veto it, to become law. That means now is the time to learn and prepare for any future changes if AI is becoming a larger part of how your business operates. If this rule becomes law, it will require any business with 50 or more employees, or any publicly traded company, to report annually to the NYS Department of Labor on how AI is affecting their workforce. That includes both quantitative estimates of how many roles were displaced, hired, or not filled because of AI, plus supporting information such as human oversight measures, safeguards around sensitive personal data, and frequency and duration of AI usage. The Department of Labor would compile all this data into a public report on AI’s impact across industries and regions. Why businesses need to pay attention: the first submissions would be due March 1, 2027, covering the calendar year ending the previous December 31. That means we could be in an active tracking period already, depending on when it gets signed. And the proposal includes enforcement provisions up to $500 per day in penalties for non-compliance, with a 90-day cure period. If your business is using AI to automate tasks that people used to do, or factoring AI capability into a decision not to fill a role, this is the year to start writing that down. A running log beats a reconstructed memory when a reporting deadline shows up. Disparate Impact Just Found Its Most Obvious Test Case Our summer compliance update blog covered New York’s decision to codify disparate impact liability under the Human Rights Law. The short version: this means a policy doesn’t need discriminatory intent to be unlawful if it produces a discriminatory effect. One area of employment law has come into tighter focus and is likely to be tested soon: automated hiring and screening tools. Many applicant tracking systems (ATS) have the capabilities to filter resumes and apply a scoring algorithm that ranks candidates. These processes can look completely neutral on paper and still produce outcomes that land differently across protected groups. At that point, the burden falls on the employer to prove the evaluation practice is job-related and necessary. How you structure and monitor your hiring process has an outsize effect here. READ MORE: Build a Hiring Process from Job Posting to Onboarding Trapped at Work Act: Implementation Takes Shape New York delayed the implementation of this legislation back in February, and it’s been amended since then. The consensus belief is that December 19, 2026 will be the effective date when the Trapped at Work Act takes effect, one year after the original law was signed. What also became clearer: this isn’t a toothless law. Violations can carry civil penalties of $1,000 to $5,000 each, enforced through a Department of Labor complaint process rather than private lawsuits. The legislation does allow repayment agreements covering the cost of tuition, fees and required educational materials for what is considered a “transferable credential”. What qualifies as a “transferable credential”? Industry-recognized degrees and diplomas Professional licenses and certifications Documented course completions or skill proficiencies portable across an industry If you have offer letters, training agreements, or reimbursement language that could read as requiring repayment for costs tied to a stay period, now is a good time to get that review scheduled instead of waiting for the date to arrive. Minimum Wage Updates for 2027 The NYS DOL website has published that there will be no increase to the state minimum wage rate at the start of 2027. Under New York Law, minimum wage rates can increase each year based on inflation. However, the law also includes certain conditions known as “off-ramps” that can prevent an automatic increase, and one of the off-ramps for 2027 has been met. As a result, the minimum wage will not receive an inflation-based increase on January 1, 2027. However, Governor Hochul is proposing a change to the law’s off-ramp provisions that would allow workers to receive the inflation-based wage increase. This would have to be approved by the State Legislature for new rates that could take effect on March 1, 2027. There’s no action to be taken now, but this is an important update to keep an eye on in the months ahead. Opioid Antagonists: The New First Aid Requirement A new labor law is set to take place on December 13, 2026 requiring New York employers covered by OSHA requirements to include an opioid antagonist—such as naloxone—in their on-site first aid kit. The current wording of the rule means employers don’t need naloxone in every single first aid kit, but it must be readily accessible wherever first aid is administered. Beyond the new rule of providing this new first-aid material, the statute signed into law also directs businesses to recruit employee volunteers to be trained on the safe and proper use of naloxone, subject to applicable collective bargaining agreements and labor law requirements. Four actions for affected businesses to take on this: Confirm whether OSHA first aid requirements apply to your workplace. Decide which product fits (likely nasal naloxone) and where it will be stored. Plan for volunteer responders and training. Training from the Department of Health or approved providers is widely available. Watch for the final NYSDOL regulations before December 13, 2026. If this is a pressing concern for your business, talk with your safety consultant on how to meet this new compliance requirement. No Severance Ultimatums Act The NY Assembly passed this bill (A6480A) in June and it is awaiting delivery to the Governor for signature. If signed, this bill would add the following requirements to any severance agreement issued in New York State: A 21-day period to consider accepting the agreements A 7-day revocation period after signature A requirement to include language notifying the employee of their right to consult an attorney prior to signing the agreement These requirements mirror the requirements of the OWBPA (Older Workers’ Benefit Protection Act) but would extend these requirements to agreement for employees of any age, once signed. Now is the time to review any severance templates you are currently using and be prepared to update them to these new requirements, if this bill is delivered to and signed by Gov. Hochul. Compliance as a Rhythm, Not a Reaction The businesses that handle compliance shifts well are the ones who check in and act before a deadline forces an issue. None of this needs to feel like a scramble. That’s as true for a company at home in Western New York as it is anywhere else. If any of this raises questions about your hiring process, your employment agreements, or how you approach HR as a function of your business, our team at Employer Services Corporation is here to help. With a team of dedicated HR business partners focused on supporting clients through compliance conversations like these, this is the work we do every week. Let’s talk about what your team is navigating in the months ahead.