Hochul Signs Three Laws to Strengthen Worker Protections
During her annual Labor Appreciation Reception, Governor Kathy Hochul signed three bills expanding workforce rights and protections in New York. Under A.2107/S.3460, employees may review their personnel files at least twice annually and must be notified when negative material is added. Under the law, employers generally have five business days to provide requested records. The Construction Reporting Pay Act requires two hours of regular pay when construction shifts are canceled less than 12 hours in advance and four hours when workers report to a job site but are sent home without cause. Additionally, A.10835-A/S.9577-A authorizes the Attorney General to seek $1,000 in damages per violation when someone falsely claims to be a union representative.
Hochul Launches Listening Sessions on AI’s Impact on Jobs
Governor Kathy Hochul recently launched listening sessions to examine how artificial intelligence is affecting New York’s workers and businesses. Led by the FutureWorks Commission, the sessions will gather feedback from workers, small businesses, employers, labor organizations, and other stakeholders. The first sessions focused on women in administrative, clerical, and customer service positions. The commission plans to issue a report by the end of the year with recommendations for preparing businesses and workers for an increasingly AI-driven economy. The initiative comes as legislation requiring certain businesses to report AI’s impact on hiring awaits delivery to the Governor.
NYS DFS Proposes New Auto Insurance Rate Oversight Rules
The New York State Department of Financial Services has proposed a new regulation requiring insurers to obtain prior approval before implementing increases to private passenger auto insurance rates. DFS would independently review proposed increases to strengthen transparency and regulatory oversight. The proposal follows state efforts to address auto insurance costs, including measures targeting insurance fraud, reducing unnecessary expenses, improving claims processing, and improving accountability in this year’s budget. The insurance industry has expressed support, while trial lawyers have raised concerns about potential effects on legitimate claims. The proposal is subject to a 60-day public comment period and is expected to take effect November 27. The proposed regulation can be read here.
DFS Proposes New Buy Now, Pay Later Regulations
The Department of Financial Services also proposed new regulations implementing the state’s Buy Now, Pay Later Act, establishing new licensing and compliance requirements for BNPL providers. The rules would cap interest rates at 16%, restrict late fees, require detailed consumer disclosures, and establish standards for underwriting, data privacy and billing disputes. Providers would also need to offer consumers an accessible interface to manage payments, review balances, allocate payments among loans, and view installment details. The proposal also addresses advertising, refunds, unauthorized transactions, and payment-method restrictions. The regulations are subject to a 60-day public comment period. Existing nonexempt providers would have 45 days after the rules take effect to apply for provisional licenses. Click here to read the full proposed regulations.
Cannabis Microbusinesses Gain New Opportunities
Governor Kathy Hochul signed legislation (S.10113/A.11217) expanding opportunities for licensed cannabis microbusinesses and dispensaries to participate in community events and farmers’ markets. The law allows eligible businesses to obtain Cannabis Showcase Event permits, enabling them to sell regulated cannabis products at approved pop-up events, outdoor markets, community festivals, and similar venues. The measure is intended to help smaller operators increase visibility, build brand recognition, and compete with larger businesses. It also provides microbusinesses with greater flexibility in meeting cultivation and processing requirements for showcase events. The legislation took effect immediately upon signing.
Federal Judge Strikes Down NY Climate Superfund Law
A federal judge has struck down New York’s Climate Change Superfund Act, ruling that it is preempted by federal law. Chief U.S. District Judge Brenda K. Sannes found that the law conflicted with the federal Clean Air Act, which establishes a nationwide framework for regulating air pollution. Signed by Governor Hochul in 2024, the Climate Change Superfund Act sought to raise approximately $75 billion from major fossil fuel companies based on their greenhouse gas emissions between 2000 and 2024. The funds were intended to support climate-related infrastructure projects. New York lawmakers and environmental advocates have criticized the ruling, and the state is expected to appeal.
Hochul Unveils Community Investment Framework for Data Centers
Governor Hochul announced a statewide framework to help local governments negotiate community investments with data center developers. Developed by Empire State Development, the voluntary Host Community Investment Framework recommends that developers contribute at least $1 million per megawatt of utility demand toward local investments in infrastructure, housing, education, childcare, public safety, and other priorities. The initiative follows Executive Order No. 62, which established a statewide moratorium on new hyperscale data center development while policies are developed. The framework is intended to help communities address the substantial land, energy, and infrastructure demands of data centers. Local governments may adapt the guidelines to their specific needs and priorities.
Final SAFE for Kids Act Rules Announced
Governor Hochul and Attorney General Letitia James announced final regulations implementing New York’s SAFE for Kids Act, establishing new restrictions on how major social media platforms interact with users under 18. The rules prohibit algorithmically curated feeds and notifications between midnight and 6 a.m. without parental consent. Platforms must instead default to content from accounts users choose to follow. The regulations also require age-verification options that include an alternative to government-issued identification and limit the collection of personal data. Parents and minors may withdraw consent at any time. Companies have 180 days to comply before the law takes effect January 25, 2027. You can find the new rules here.
Medical Aid in Dying Law Takes Effect
New York’s Medical Aid in Dying Law took effect Wednesday, allowing eligible adults with terminal illnesses to request medication to end their lives under legal safeguards. The law applies to New York residents aged 18 and older who have been diagnosed with a terminal illness and are expected to live six months or less. Patients must submit verbal and written requests, receive approval from two physicians, complete a mental health evaluation, and observe a five-day waiting period. Several Catholic organizations have filed a lawsuit challenging provisions requiring nonparticipating providers to transfer patients to willing providers. The state has granted the plaintiffs a temporary exemption while the case proceeds.
New York Imposes Medicaid Enrollment Freeze on High-Risk Providers
In July, New York imposed an immediate, temporary moratorium on new Medicaid enrollments for several categories of health care providers considered at higher risk of fraud, waste and abuse. The freeze applies to licensed home care agencies, adult day care programs, durable medical equipment suppliers, and applied behavior analysis, laboratory and pharmacy providers. Existing Medicaid providers will not be affected. State Medicaid Director Amir Bassiri said the measure is intended to strengthen program oversight and protect taxpayer dollars amid increased federal scrutiny of Medicaid programs. The moratorium follows federal guidance encouraging more rigorous screening of high-risk providers and will remain in effect for at least six months while New York evaluates its enrollment and oversight processes.
New York Updates Surprise Medical Billing Dispute Rules
The New York State Department of Financial Services has issued guidance and proposed regulations revising the state’s independent Dispute Resolution process for surprise medical billing disputes. The changes, enacted in the FY 2027 state budget, exclude Medicaid Managed Care coverage while bringing the Empire Plan and Student Employee Health Plan into the system under specific criteria. The amendments also give dispute resolution entities additional time to issue decisions and require insurers and providers to pay before a case can be reviewed. The changes took effect August 26. To align existing regulations with the new requirements, DFS will adopt temporary emergency amendments while permanent regulations go through the formal rulemaking process. To read the proposed regulation, click here.