Summary of September 2025 Labor Law Updates for New York, New York
Welcome to HKM Employment Attorneys’ monthly roundup of key developments in New York labor and employment law. This post summarizes notable court decisions, legislation, and agency actions from September 2025 that affect workers, employers, and HR professionals in New York.
September 2025 was an active month in New York labor law. The most consequential development is the passage of S.8034A/A.8590A and the twin lawsuits from the NLRB and Amazon challenging the state’s assumption of private-sector labor jurisdiction. Employers, unions, and HR professionals should closely monitor these legal battles, as their outcomes could reshape enforcement landscapes in New York. If your organization operates in New York or faces labor or employment questions, please contact HKM Employment Attorneys (https://hkm.com) for guidance tailored to your situation.
NLRB Sues New York Over State Labor Law — Federal Preemption / Enforcement Dispute
Date: September 2025 (filed September 12, 2025)
Summary:
On September 12, 2025, the National Labor Relations Board (NLRB) filed suit in the U.S. District Court for the Northern District of New York challenging a state law passed just days earlier (S.8034A / A.8590A). The law — signed by Governor Kathy Hochul on September 5 — gives the New York State Public Employment Relations Board (PERB) authority to assert jurisdiction over private-sector labor disputes (e.g., unfair labor practice charges, union representation matters) when the NLRB is unable to act effectively. The NLRB argues this statute “unlawfully usurps” federal authority under the National Labor Relations Act (NLRA) and is preempted by federal law.
Implications:
This litigation directly challenges New York’s attempt to fill gaps in federal oversight amid the NLRB’s lack of quorum. Employers and unions in New York must monitor whether PERB begins to entertain charges previously handled only by the NLRB, and whether federal courts block that enforcement. A ruling in favor of the NLRB could limit the state’s ability to mediate private-sector labor relations; a ruling favoring New York could invite similar state-level expansions elsewhere.
Amazon Challenges New York’s PERB Jurisdiction Law — Litigation Against State Enforcement
Date: September 22, 2025
Summary:
On September 22, 2025, Amazon filed suit against the New York State Public Employment Relations Board to block enforcement of S.8034A, calling the law an unconstitutional expansion of state power. Amazon argues that the statute intrudes on the NLRB’s exclusive domain over private-sector labor relations and that PERB’s assumption of jurisdiction (unless overturned by court) leads to conflicts with federal law. Amazon points to a specific case in Staten Island where PERB filed a charge under the new law even though the NLRB had an open investigation.
Implications:
The Amazon suit adds corporate-level resistance to the state law, increasing pressure on courts to clarify jurisdictional boundaries. Companies active in New York should review how this law might affect their collective bargaining, labor charge exposure, or union interactions. Until litigation resolves, there may be uncertainty about which agency has the authority to adjudicate private-sector labor disputes in New York.
Proposal to Limit Noncompete Agreements — Pending Legislation
Date: September 23, 2025 (legislative proposal)
Summary:
On September 23, 2025, alerts began circulating that New York legislators are considering a new employment bill that would broadly prohibit employers from using noncompete agreements for many employees. The proposed bill (S.4641A) would bar noncompetes for “covered individuals” or health-related professionals unless their compensation is above a threshold (currently proposed $500,000). The definition of “covered individuals” is broad and based on concepts of economic dependence.
Implications:
If passed, this law would significantly curtail noncompetition covenants in New York, especially for mid- and lower-wage workers. Employers relying on noncompetes would need to revisit agreements, severability clauses, and enforceability. Health professionals (e.g., physicians, nurses) would also see specific limitations tied to this bill.
Court Decision: Substitute Teachers Ineligible for Summer Unemployment — Court Ruling / Unemployment Law
Date: September 2025 (reported)
Summary:
A New York appellate court reversed an earlier decision and reaffirmed that substitute teachers are not eligible for unemployment benefits during summer breaks if they have a “letter of assurance” of rehire. The court held that substitute work is inherently uncertain and that a letter of assurance does not guarantee reinstatement, keeping the traditional rule intact.
Implications:
Substitute teachers and certain school employees should not count on summer unemployment coverage under these circumstances. Human resources offices in school districts should continue reviewing policies and communications regarding reemployment and unemployment eligibility. This decision likely preserves the prior interpretation until the legislature or higher court alters it.
(Context) 2025 Labor Reform Legislation Signed by Governor — Legislative Background
Date: Early September / before September 5, 2025
Summary:
As part of a broader legislative package signed in early September 2025, Governor Hochul enacted bills aimed at strengthening labor protections and expanding worker rights, including the PERB jurisdiction law discussed above. These enactments came amid federal uncertainty about labor enforcement.
Implications:
The September 2025 package marks one of the more aggressive labor reforms in recent New York history, signaling state willingness to act when federal agencies lag. Employers must stay alert to implementing regulations and enforcement actions emerging under these new statutes.
(Ongoing) New York State Budget Reforms Affecting Wage-Hour & Enforcement — Statutory Changes
Date: Enacted earlier in 2025; relevant in September review
Summary:
The 2025-26 New York state budget included new amendments to the New York Labor Law that affect wage and hour enforcement and liquidated damages in wage payment actions. Some changes aim to curb high-volume frequency-of-pay litigation.
Implications:
Employers should continue to reassess practices around pay frequency, overtime, and penalties for underpayments. Even though these changes were enacted earlier in the year, their effects and interpretations may continue to evolve and attract litigation in later months.
Conclusion: Looking Back on New York’s Labor Law Updates from September 2025
With recent court rulings refining protections under the NY Human Rights Law, Family and Medical Leave Act, and anti-retaliation statutes, securing experienced local counsel is more important than ever. At HKM Employment Attorneys in New York, our NYC and New Paltz teams—including attorneys Briana Beltran, Artemio Guerra, Marcela Jimenez Rodriguez, and Meagan Rafferty—have obtained over $250 million for employees across practice areas such as discrimination, harassment, FMLA, and more. We offer fearless, no-fee-unless-we-win representation and guide clients through sensitive negotiations, EEOC or ethics filings, and court litigation. If recent NY case developments hit close to home, contact our New York office to see how we can help enforce your workplace rights.
