NYC Amends Human Rights Law to Prohibit Contractual Provisions Shortening Statute of Limitations for Discrimination Claims
Effective May 11, 2024, New York City employers are prohibited from contractually requiring employees to agree to a shortened statute of limitations for claims of unlawful discriminatory practices, harassment, or violence under the New York City Human Rights Law (“NYCHRL”). The City Council has amended Sections 8-109 and 8-502 of the New York City Administrative Code. The law now provides: “Any provision of an agreement involving an employer, employment agency, or agent thereof pertaining to terms of employment that purports to shorten the periods in which a complaint or claim may be filed” is “unenforceable and void as against public policy.”
The applicable statutes of limitations for asserting a claim based on an alleged violation of the NYCHRL are within three years of the last alleged act of discrimination for a civil action in court, or, if filing with the New York City Commission on Human Rights, within one year after the last actionable conduct, or within three years for claims of gender-based harassment.
Many employers had required their employees to agree to shorter statutes of limitations for such claims, and the New York courts have held that the practice was enforceable. See Hunt v. Raymour & Flanigan, 105 A.D.3d 1005 (App. Div. 2nd Dept. 2013); Top Quality Wood Work Corp. v. City of N.Y., 191 A.D.2d 264 (App. Div. 1st Dept. 1993); Cayetano v. Fed. Express Corp., 2022 U.S. Dist. LEXIS 119102 (S.D.N.Y. July 6, 2022); Keller v. About, Inc., 2021 U.S. Dist. LEXIS 86235 (S.D.N.Y. May 5, 2021). While this new ordinance does not affect the ability of employers to shorten the statute of limitations under other federal and state laws, that will be of little solace to employers given that their NYC-based employees would still have the full three years to avail themselves of their rights under the NYCHRL, which is widely and correctly viewed as a pro-employee law.
Lewis Brisbois’ New York employment group can assist clients with any revisions to employment agreements, policies and handbooks necessitated by this change in the NYCHRL.