The New York State Assembly joined the State Senate to pass the Anti-Waiver of Employment Rights Act (S44244-A) on May 13, 2026. If the Act becomes law, it would invalidate express or implied contractual provisions waiving or limiting any employee’s substantive or procedural rights, remedies, or claims under the New York Labor Law and New York State Human Rights Law (NYSHRL).
Legislative Findings and Intent
In its legislative finding and intent, the Legislature states that it has always been its intention that the rights provided under the Labor Law and NYSHRL are mandatory and non-waivable through private agreement. New York public policy permits enforcement of these rights collectively, they explained, including through class action lawsuits in state court. According to the Legislature, some courts have misconstrued these statutes, permitting waivers of statutory rights under the Labor Law and NYSHRL, such as shortening statute of limitations or waiving the ability to enforce rights collectively.
Broad Amendment of Labor Law and NYSHRL
The Act would amend Article 7 of the Labor Law to add new §219-e and Article 15 of the Executive Law, which contains the NYSHRL, to add new §302, placing strict restrictions on both pre-dispute contractual waivers or other limits on substantive or procedural rights, remedies, or claims and post-dispute waivers. Under the Act, no express or implied contractual provision waiving, or otherwise limiting an employee’s substantive or procedural rights, remedies or claims, whether or not asserted or legally cognizable under the Labor Law or NYSHRL shall be valid, unless the waiver is mutually agreed to and included in (i) the settlement of a good faith, bona fide dispute where an employee raises a claim against the employer, or (ii) an agreement entered into upon or following the termination of employment, such as a separation agreement.
Narrow Exceptions
The Act would not apply where preempted by federal law. This exclusion should mean that arbitration agreements governed by the Federal Arbitration Act, including permitted collective and class action waivers set forth in those arbitration agreements, will continue to be enforceable. The Act also states that it does not diminish existing rights and remedies of any employee under any other law, regulation, collective bargaining agreement, or employment contract.
Retroactivity
If enacted, the Act would become effective immediately. Although the Act is silent about retroactivity, the legislative findings suggest the Legislature intends for it to apply to existing agreements, stating private agreement waivers under the Labor Law and NYSHRL “have been and are henceforth invalid.”
Next Steps
Governor Kathy Hochul has not taken a public position on the Act. Bills that pass the Senate and Assembly generally are “called up” by the governor in batches, often near calendar year-end. We will continue to follow the Act. Stay tuned.
