New York employers should prepare for several significant changes to New York employment laws, some of which will take effect imminently, with another awaiting the Governor’s signature. These changes include a newly created right for current and former employees to obtain a copy of their personnel file, potential new requirements to secure a release of claims, and new restrictions on employee repayment obligations. Below, we summarize the key requirements and practical steps employers should consider.

Employee Access to Personnel Records

Effective November 8, 2026, current and former employees in New York will have the right to access their personnel records. On September 9, 2026, Governor Kathy Hochul signed Senate Bill S3460, creating Section 210-b of the New York Labor Law. This statute, which is modeled after the Massachusetts personnel records law, applies broadly to employers of employees working in New York, regardless of the employer’s size or location.

Personnel Records Covered by the Law 

An employer must provide a current or former employee with a copy of the employee’s personnel record within five business days after receiving a written request. For purposes of the statute, a “personnel record” may encompass records beyond those normally maintained in an employee’s personnel file, as it includes all records used or that may be used in connection with the employee’s qualifications for employment, promotion, transfer, additional compensation, or disciplinary action. Covered records include, without limitation:

• biographical information, including the employee’s name, address, and date of birth;
• job title and job description;
• rate of pay and other compensation;
• employment start date;
• completed employment applications, resumes, and other materials submitted in response to an employer’s job posting;
• performance evaluations;
• written performance warnings and other documents relating to disciplinary action;
• lists of probationary periods;
• waivers signed by the employee; and
• dated termination notices.

The definition also reaches covered records held by a third party that has contracted with the employer to maintain or supply personnel records. Employers therefore should identify relevant human resources and payroll records maintained by vendors and establish a process for retrieving those records within the five-business-day response period.

Employers must retain an employee’s personnel record for at least three years after the employee’s separation from employment.

Notice of Negative Information and Employee Rebuttals 

An employer must notify an employee within 10 days after placing in the employee’s personnel record any information that may “negatively affect” the employee’s qualifications for employment, promotion, transfer, or additional compensation or may be used in connection with potential discipline.

If an employee disputes information in their personnel record, and if the employer and employee do not agree to remove or correct the information, then the employee may submit a written statement explaining the employee’s position, which must thereafter be included as part of the personnel record.

Anti-Retaliation and Enforcement 

Employers may not discharge, threaten, penalize, discriminate against, or otherwise retaliate against an employee for exercising rights under the statute. Employers that violate the law may face civil penalties ranging from $500 to $2,500, enforceable by the New York Attorney General. The statute does not expressly create a private right of action.

Recommended Employer Action

Before November 8, 2026, employers should prepare for compliance with the new law, including by:

• designating employees responsible for receiving and responding to personnel record requests;
• implementing a process for identifying and compiling records that may constitute personnel records under the new law, including records maintained by third-party vendors;
• reviewing document-retention practices to ensure that complete personnel records are retained for three years following an employee’s separation from employment;
• establishing procedures for providing notice when negative information is added to an employee’s personnel record; and
• training human resources personnel and managers on the new requirements.

Once the law takes effect, employers should consider consulting with employment counsel before responding to a personnel record request to confirm that the response is complete.

Potential New Requirements for Severance Agreements

The New York Legislature has passed Senate Bill S372A, known as the No Severance Ultimatums Act. The bill is expected to be presented to Governor Hochul for consideration by year-end. Because the law would take effect immediately upon signature, employers should begin preparing now for the proposed requirements.

This legislation, which mirrors obligations imposed by the federal Older Workers Benefit Protection Act (OWBPA), would require an employer offering a current or former employee a severance agreement that contains a release of claims to notify the employee that:

• the employee has the right to consult an attorney regarding the agreement;
• the employee has at least 21 calendar days to consider the agreement; and
• the employee may revoke the agreement within seven calendar days after signing it, and the agreement will not become effective or enforceable until that revocation period has expired.

As with the OWBPA, an employee may elect to sign the severance agreement before the end of the 21-day consideration period, as long as their decision is knowing and voluntary and is not induced by fraud, misrepresentation, or threats to withdraw or alter the consideration period. Further, an employer may not encourage an employee to sign before the end of the required consideration period by offering more favorable terms if the employee signs early.

A severance agreement that does not comply with these requirements – including the release-of-claims provision in such agreement – would be void and unenforceable. The legislation does not address whether an employee would be required to return any severance benefits paid under a noncompliant agreement, creating a risk that an employer could lose the benefit of the release after having paid the agreed-upon severance.

Recommended Employer Action

Because the law would take immediate effect once signed, employers should consider preparing updated New York severance agreement templates now so that they are ready for use without delay. Employers also should review termination scripts and related communications to ensure that managers and human resources personnel advise employees of their right to an extended consideration period and do not pressure employees to sign before the end of that period.

Restrictions on Employee Repayment Agreements

Effective December 19, 2026, New York’s Trapped at Work Act (the Act) will restrict a New York employer’s ability to require repayment of certain debts upon termination of employment. For a more detailed analysis of this and similar laws, see our prior client alert.

The Act generally prohibits an employer from requiring an employee or prospective employee, as a condition of employment, to execute an “employment promissory note,” defined as an agreement requiring an employee to pay the employer a sum of money if the employment relationship ends before a stated retention period has elapsed. The Act will apply to agreements entered into on or after December 19, 2026, as well as to new or amended terms added to existing agreements on or after that date.

Although seemingly broad, the Act contains several important exceptions that preserve employers’ ability to use certain repayment provisions commonly included in offer letters and employment agreements, including the following:

• Tuition Assistance. An employer may require repayment of tuition, fees, and required educational materials for a qualifying “transferable credential” if specified conditions are satisfied. Among other requirements, the repayment obligation must be contained in a separate agreement; the credential cannot be required as a condition of employment; the repayment amount must be specified in advance and cannot exceed the employer’s actual costs; the repayment amount must be prorated based on the percentage of the retention period completed; and repayment generally cannot be required if the employer terminates the employee, except where the employee is terminated for misconduct.

• Signing Bonuses, Relocation Assistance, and Other Noneducational Incentives. An employer may require repayment of a signing bonus, relocation assistance, or another noneducational incentive or benefit that is not tied to specific job performance unless the employee was terminated for a reason other than misconduct (e.g., without “cause”) or the duties or requirements of the position were misrepresented to the employee.

• Sale of Property. The Act does not apply to an agreement requiring an employee to pay for property that the employee voluntarily agreed to buy or lease from the employer.

• Sabbaticals. The Act does not apply to repayment obligations imposed on educational personnel under the terms of an employer’s sabbatical-leave policy.

An aggrieved employee or prospective employee may file a complaint with the New York Commissioner of Labor. Employers that violate the Act may be subject to civil penalties ranging from $1,000 to $5,000 for each violation. In addition, an employee who successfully defends against an employer’s attempt to enforce a promissory note rendered void by the Act may recover attorneys’ fees.

Recommended Employer Action

Before December 19, 2026, employers should review offer letters, employment agreements, tuition assistance programs, training repayment provisions, signing and retention bonus agreements, relocation repayment provisions, and other “stay-or-pay” arrangements and revise them as needed to comply with the Act.

Conclusion

Employers should take steps now to prepare for these developments, including by reviewing their existing procedures and agreements and considering any necessary updates. WilmerHale’s employment group is available to assist employers in navigating these developments and making appropriate changes to their policies, practices, and agreements.