New York State Employment Law Year-End Updates

In December 2025, New York State Governor Kathy Hochul signed three new employment laws that expand worker protections related to accommodation requests, background checks, and repayment obligations. Businesses operating in New York should review these updates carefully, as several provisions are already in effect. 

Expanded Protections for Accommodation Requests 

On December 5, 2025, Governor Hochul signed the Reasonable Accommodation Anti-Retaliation Rights Law, which amends the New York State Human Rights Law and is effective immediately. 

This law makes it an unlawful discriminatory practice to retaliate against individuals who request reasonable accommodation. Importantly, the protection is not limited to the workplace. It also applies to individuals seeking reasonable accommodation in housing and places of public accommodation. 

When a worker on engagement through TCWGlobal requests a reasonable accommodation in the workplace, TCWGlobal guides both the worker and the client through the interactive process to reach a solution that is compliant, thoughtful, and workable for all parties. 

Restrictions on the Use of Consumer Credit History 

On December 19, 2025, New York enacted a law prohibiting businesses from requesting or using an applicant’s consumer credit history for hiring decisions. This law will take effect on April 18th, 2026. 

Consumer credit history is broadly defined and includes any communication from a consumer reporting agency regarding an individual’s credit report, credit score, credit history, liens, bankruptcies, or judgments. 

The law includes several notable exceptions, including when: 

• A credit check is required by state or federal law 

• The position involves a high degree of public trust, such as law enforcement roles or positions requiring federal security clearance 

• The role requires access to company or client digital security systems, trade secrets, intelligence information, or national security information 

• The position authorizes the worker to sign agreements on behalf of the company or a third party valued at ten thousand dollars or more 

 TCWGlobal stays on top of all federal, state, and local requirements governing pre employment background checks, and by utilizing our employer of record services you can be confident your organization remains compliant. 

The Trapped at Work Act 

Also signed on December 19, 2025, the Trapped at Work Act is effective immediately. This New York state law prohibits businesses from entering into agreements that require workers to repay money if they leave employment before a specified time period has elapsed. 

The term “worker” is defined broadly and includes most individuals hired by a business, excluding vendors of goods. 

The law provides limited exceptions, including agreements that: 

• Require repayment of money advanced to a worker, provided the funds were not used to pay for training 

• Require payment for property sold or leased to the worker 

• Apply to educational personnel under the terms of a sabbatical leave 

• Are entered into as part of a program established through a collective bargaining agreement 

This Act aligns with trends we are seeing in other states as well, including AB 692 in California which also becomes effective January 1, 2026, and prohibits “stay or pay” provisions.   

Get Started Today 

Avoid compliance headaches and costly legalmistakes, by partnering with TCWGlobal. Contact us today at tcwglobal.com or email us at hello@tcwglobal.com to discover how we can help your organization navigate these changes and more.   

Interested in learning more about best practices in New York or beyond? Explore our additional resources to stay informed and compliant. 

Sick Leave for New York Employees: What You Need to Know in 2025 

New York to Require Certain Workplace Violence Protections for Retail Workers