The New York City Council recently amended Sections 8-109 and 8-502 of the New York City Administrative Code, directly affecting employment agreements.

Under the New York City Human Rights Law (NYCHRL), employees have one year to file a complaint or claim with the New York City Commission on Human Rights (NYCCHR) for unlawful discriminatory practices or acts of discriminatory harassment or violence. Employees have three years to file a claim of gender-based harassment. The statute of limitations for commencing a civil action under the NYCHRL is three years.

Effective May 11, 2024, the amendments to Sections 8-109 and 8-502 of the NYCHRL prohibit provisions in employment agreements that shorten these statutory periods for filing complaints or claims with the NYCCHR or commencing civil actions under the under the NYCHRL. Below we outline the key implications of this new law for employers.

Key Provisions of the Amendment

Under Section 8-109(e-1), any provision in an employment agreement that seeks to shorten the timeframe for filing a complaint or claim with the NYCCHR related to discriminatory practices, harassment, or violence is now unenforceable and void as against public policy.

Similarly, under Section 8-502(d-1), any provision in an employment agreement that attempts to shorten the three-year statute of limitations for initiating a civil action under the NYCHRL is unenforceable and void as against public policy. 

Importantly, if such a provision is included in an employment agreement, it does not affect the enforceability of any other provisions in the agreement.

Implications for Employers

Historically, provisions that restrict statutes of limitation may have been found in pre-dispute alternative dispute resolution agreements (arbitration or mediation agreements). In light of the recent amendments, New York City employers should review existing employment and arbitration agreements to ensure compliance with the new law. Provisions that limit the statutory periods for filing complaints or claims with the NYCCHR or commencing civil actions under the NYCHRL should be removed or revised. Going forward, employers should ensure that new employment and arbitration agreements do not include such limiting provisions.

Finally, as the law is now in effect, a New York City employer facing a dispute should not attempt to enforce provisions of this nature that may have been included in an otherwise valid employment agreement. Notwithstanding, this update to the NYCHRL expressly provides that it does not render such agreements unenforceable, even if they do contain provisions with language that is now void as against public policy.