New York

The Second Circuit Court of Appeals recently held that when the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) applies to at least one claim in an employee’s lawsuit, the EFAA invalidates a pre-dispute arbitration agreement as to the entire lawsuit. This includes claims unrelated to sexual harassment or assault such as breach of contract and wage claims. In Diaz-Roa v. Hermes Law, P.C., a senior employee filed sexual harassment, contract, wage and other claims against a law firm and another business entity. The defendants argued that the EFAA should have only permitted the employee’s harassment claim to be decided in court while the rest of the case belonged in arbitration under a pre-dispute arbitration agreement that the employee signed. The Second Circuit disagreed, finding that when a case involves a sexual harassment or sexual assault claim, the arbitration agreement is invalidated under the EFAA with respect to the entire case. The Sixth and Ninth Circuits have issued similar rulings. Based on this decision, employers in New York, Connecticut, and Vermont should be aware that even if an employee signs an arbitration agreement, the inclusion of a claim related to sexual harassment or assault in a case involving other non-harassment claims could result in the entire case being litigated in court instead of arbitration. …

On August 14, 2026, the Southern District of New York issued a notable decision for employers addressing the scope of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) in Lane v. Salesforce, Inc. As previously discussed in PERKS, the EFAA enables employees asserting sexual harassment or sexual assault claims to proceed in court despite a pre-dispute arbitration agreement with their employer.…

Are your sick leave practices ready for upcoming compliance changes?

New York City has adopted amended final rules regarding paid and unpaid sick/safe time requirements. The new rules take effect July 23, 2026.

Most of the changes reflect the requirements that became effective earlier this year and the guidance previously issued by the City. However…

New York, Connecticut and Vermont employers, take note!

On May 4, 2026, the Second Circuit issued a ruling that affects FLSA collective actions. In Provencher v. Bimbo Foods Bakeries Distribution LLC, the court rules that a federal district court may not authorize notice to out-of-state potential opt-in plaintiffs in an FLSA collective action unless…

NYS Employers:

On February 13, 2026, Governor Kathy Hochul signed an amendment to the New York “Trapped at Work Act” delaying enforcement and narrowing the law’s ban on “stay or pay” repayment provisions.

As discussed previously on PERKS, the Trapped at Work Act originally went into effect on December 19, 2025. The law prohibits employment…