Key Details on New York’s Enhanced Employee Rights Legislation

Earlier this year, we reported on New York legislators passing S3460, a bill that, if signed into law by Governor Kathy Hochul, would significantly expand employee rights with respect to personnel records in New York. The law requires employee access to personnel files, imposes notice obligations when negative information is added to a file, permits employees to submit written rebuttals for inclusion in the record, and creates new compliance obligations and potential penalties for employers. Governor Hochul signed the legislation into law on September 9, 2026, making it critical for employers to review their personnel recordkeeping practices and prepare for compliance when it takes effect on November 8, 2026. However, the law is subject to amendment expected to take place in early 2027.

Employers Should Update Any Conflicting Policies

Many New York employers have policies limiting or preventing employees from accessing their personnel files, which is no longer legal under the new law. Before November 8, employers should amend any policies that prohibit employees from accessing their personnel files as permitted by this amendment to New York labor law.

Employers now must:

Allow employees to access their personnel record on up to two occasions per year if an employee requests to do so.
Notify an employee when information has been placed in their file that “has been used or may be used, to negatively affect the employee’s qualifications for employment, promotion, transfer, additional compensation or the possibility that the employee will be subject to disciplinary action” within 10 days of the information being added.
Allow employees who receive notice that negative information has been placed in their file to review their personnel file within five business days of the notice if the employee requests a review, including the new negative information added (which does not count towards the two annual personnel file reviews employees are entitled to).
Grant employees who are notified of negative information placed in their personnel file the opportunity to submit a written statement explaining the employee’s position, which must be added to the employee’s personnel file.
Transmit the employee’s written statement alongside any covered negative information from the employee’s personnel file when it is transmitted to a third party.

What Is a Personnel Record Under the Law?

Under this new law, a personnel record is 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.” This includes, but is not limited to, the following:

The name, address, date of birth, job title and description.
Rate of pay and any other compensation paid to the employee.
Starting date of employment.
The job application of the employee; resumes or other forms of employment inquiry submitted to the employer in response to the employer’s advertisement by the employee.
All employee performance evaluations, including but not limited to, employee evaluation documents.
Written warnings of substandard performance.
Lists of probationary periods.
Waivers signed by the employee.
Copies of dated termination notices.
Any other documents relating to disciplinary action regarding the employee.

Potential Penalties for Noncompliance

If an employer is not in compliance with this law by the November 8 effective date, the New York Attorney General has discretion to bring an action against violators and subject them to a fine between $500 and $2,500. Individual employees who face illegal discrimination or retaliation for exercising their rights under the amended statute may also bring a private claim. Additionally, if an employer places information in an employee’s personnel file that the employer “knew or should have known to be false,” the employee can seek to have this information expunged through judicial action for injunctive relief (i.e., a lawsuit), other personnel procedures or an applicable collective bargaining agreement.

Future Amendments to the Law

The approval memorandum accompanying Governor Hochul’s signature identified “ambiguities that needed to be resolved to avoid uncertainty for both employers and employees, including clarifying that employers are not required to create a personnel file or produce new documents beyond the records they currently maintain, and that personnel files only include the records or documents used to determine an employee’s qualifications for hiring, retention, promotion, transfer, additional compensation or disciplinary action.”

Legislators are obligated to pass this amendment by the end of the next legislative session set to take place in January 2027.

What Does This Mean for Employers Now?

Employers should update their policies and provide training as needed to comply with the current law and anticipate reviewing any future amendments set to be passed in January 2027.

Additional Assistance

For further assistance, please contact any of the attorneys on our Labor and Employment Practice Team or the Phillips Lytle attorney with whom you have a relationship.