Companies of all sizes need to give due consideration to managing their employment-related risk. Employee lawsuits, government enforcement actions, and even accusations of discrimination and harassment on social media can all have serious consequences. While companies cannot insulate themselves from these risks entirely, they can take steps to mitigate their risk to the fullest extent possible. Keep reading to learn what companies can (and should) be doing to mitigate their employment-related risk in 2026 from an experienced New York employer defense attorney at Bell Law Group.
How Companies in New York Can Mitigate Their Employment-Related Risk in 2026
Employers in New York face employment-related risks at the local, state and federal levels. Along with federal laws like Title VII, the Americans with Disabilities Act (ADA) and the Immigration Reform and Control Act (IRCA), employers in New York must comply with a variety of state and local laws as well. With this in mind, here are seven key strategies for mitigating employment-related risk in 2026:
1. Prioritizing Compliance with New Employment Laws
New York has adopted several new employment laws and amendments to its existing employment laws over the past year, including:
- An amendment to the New York State Human Rights Law (NYSHRL) that prohibits retaliation against employees who request reasonable accommodations;
- Another amendment to the NHSHRL that codifies the state’s “disparate impact” doctrine as a basis for claiming employment discrimination;
- The new Trapped at Work Act, which prohibits the use of “employment promissory notes” and other types of stay-or-pay agreements with employees, and
- An amendment to New York’s General Business Law that prohibits employers from using credit reports to make employment-related decisions.
When new laws like these take effect, employers must take proactive steps to come into compliance. In many cases, noncompliance can expose employers to both civil liability in employee lawsuits and civil or administrative penalties.
2. Prioritizing Immigration Law Compliance
With the federal government’s ongoing immigration crackdown, employers in New York need to prioritize immigration law compliance in 2026 as well. Among other things, this includes compliance with the federal Form I-9 requirements.
Employers must ensure that they have all necessary I-9 forms on file, and they must be prepared to share these with Immigration and Customs Enforcement (ICE) agents in the event of an I-9 audit. With that said, when facing these audits, employers must make informed and strategic decisions about what they voluntarily share with ICE, and this means that they should engage experienced defense counsel promptly.
3. Not Overlooking Traditional Employment-Related Risks
While employers should prioritize the risks discussed above, they should not do so at the expense of adequately addressing traditional employment-related risks, which remain very real concerns. This includes, but is by no means limited to, risks such as:
- Discrimination complaints under federal, state and local law;
- Harassment complaints under federal, state and local law;
- Wage and hour violations; and
- Disputes under employment contracts and severance agreements.
In light of the multitude of risks that are inherent in maintaining a workforce, employers of all sizes need to maintain comprehensive and custom-tailored employment compliance programs. Not only can having these programs in place help prevent liability exposure, but, in many cases, it can serve as a defense (or at least a partial defense) to employment-related liability as well.
4. Reviewing Existing Employment Policies and Procedures
With that said, simply having an employment compliance program isn’t enough. If a company’s employment policies and procedures are outdated, they can potentially do more harm than good. As a result, employers should generally review their existing employment policies and procedures annually, and they should make changes and updates as necessary to reflect both (i) changes in their workforce and (ii) changes in the law.
5. Documenting Compliance Efforts As a Matter of Course
Another important—and often overlooked—aspect of effective employment-related risk management is documenting a company’s compliance efforts as a matter of course. This includes documenting the dissemination of company policies and employee handbooks, documenting employee training programs, and documenting compliance audits and other efforts to maintain compliance on an ongoing basis. Not only can this help ensure that these efforts actually occur, but it can also provide critical evidence when companies need to defend their employment practices.
6. Investigating Employee Complaints Promptly and in Good Faith
When employees accuse their employers of discrimination, harassment, and other unlawful employment practices, responding to these accusations effectively can be critical for mitigating employers’ liability exposure. Among other things, this means promptly conducting an investigation in good faith.
If the findings of an investigation support the employee’s allegations, this may mean that targeting a confidential settlement is the best approach under the circumstances. On the other hand, if the findings of the investigation do not support the employee’s allegations, this should inform the company’s defense strategy, and the company’s leadership team should not hesitate to dispute the allegations at hand (although a tactful approach may still be necessary).
7. Staying Up-to-Date on Pertinent Legal Developments
Finally, along with addressing recent legal developments, employers should also ensure that they stay up-to-date on pertinent legal developments throughout the year. When it comes to employment law compliance, ignorance of the law is not a defense. By remaining in contact with their employer defense counsel throughout the year, company executives can ensure that they have the information they need to make sound decisions—and they can work with their company’s counsel to update their employment policies, procedures and other compliance documentation as necessary.
Schedule a Call with a New York Employer Defense Attorney at Bell Law Group
If you have questions about what your company should be doing to manage its employment-related risk in 2026, we invite you to get in touch. Our attorneys work with employers of all sizes, and we provide compliance and defense representation for federal, state and local matters. To schedule a call with an experienced New York employer defense attorney at Bell Law Group, give us a call at 516-280-3008 or inquire online today.
