New York Legislature Passes Anti-Waiver of Employment Rights Act

On May 13, 2026, the New York State Legislature passed Assembly Bill A4424A, the Anti-Waiver of Employment Rights Act. The bill now awaits the Governor’s signature. If signed into law, the Act will take effect immediately and will invalidate any express or implied contractual provision that waives or otherwise limits an employee’s substantive or procedural rights, remedies, or claims under New York law.

The Act reaffirms that the protections afforded by the New York Labor Law and the New York State Human Rights Law are mandatory and cannot be waived through private agreement. According to the Legislature, the bill is intended to correct the course of New York court decisions that permitted employers to require employees to waive or restrict statutory rights by contract. Those decisions have allowed employers, among other things, to shorten statutes of limitations and prohibit certain procedural mechanisms available to employees seeking to enforce their rights.

In practice, these provisions have frequently appeared in employment applications, offer letters, onboarding documents, and other employment agreements, often resulting in employees unknowingly giving up their rights.

The Act recognizes two limited exceptions under which waivers may remain enforceable if they are entered into voluntarily and by mutual agreement:

1. A waiver contained in the settlement of a good-faith, bona fide dispute that was not raised or initiated by the employer; or
2. An agreement entered into upon or after the termination of an employee.

If signed into law, the Anti-Waiver of Employment Rights Act will significantly limit employers’ ability to contract around employee protections under New York law and will likely require employers to review and revise existing employment agreements, offer letters, onboarding materials, and other personnel documents to ensure compliance.