Editor's Note: This analysis is based on the New York State Division of Human Rights' June 17, 2026 proposed amendments to 9 NYCRR Part 465. A copy of the proposed regulations is available at the end of this article.
On June 17, 2026, the New York State Division of Human Rights ("DHR") proposed amendments to its regulations at 9 NYCRR Part 465. Much of the proposal focuses on creating greater and sooner opportunities for settlement through both informal and formal conciliation. The proposed regulations also establish criteria for evaluating settlement offers, identify minimum standardized terms for settlement agreements, and clarify the process by which a complainant may object to a settlement proposal that DHR otherwise deems fair and in the public interest.
The full 19-page proposal is available for review at the end of this article.
While the proposal is largely framed as a settlement initiative, the most consequential change may have little to do with settlement at all. Instead, it may be DHR's recognition that respondents are entitled to a more definite statement of the allegations against them before being required to defend a discrimination claim.
The real story is due process.
Specifically, DHR proposes to add subdivision 465.11(f), entitled More Definite or Detailed Statement, which would allow a respondent to apply in writing to the Chief Administrative Law Judge for a more definite or detailed statement of the complaint. According to the proposal, this amendment is intended to ensure compliance with the State Administrative Procedure Act.
That is significant because, for years, discrimination respondents have often been required to defend claims based on vague allegations that do not clearly identify the specific conduct, dates, statements, decisionmakers, policies, comparators, or facts underlying the alleged discrimination. In practice, respondents have frequently been left guessing as to the actual allegations they must defend against.
If adopted, the proposed rule would provide respondents with a direct procedural mechanism to seek clarification before hearing, rather than waiting until after an adverse determination to argue that the proceeding failed to comply with the State Administrative Procedure Act. This is more than a technical amendment. It is a recognition that a respondent cannot meaningfully defend a discrimination claim without adequate notice of the allegations being asserted.
Settlement Reform Is Still Important
The proposed regulations also expand DHR's settlement framework. The amendments contemplate conciliation before a complaint is filed, conciliation after a complaint is filed but before a determination after investigation, pre-hearing settlement conferences, division-initiated settlements, and settlement review during the hearing process.
In evaluating whether a settlement offer is substantial enough to warrant termination of a proceeding in the public interest, DHR may consider factors including the probability of success, the reasonableness of the offer, the complainant's economic loss, evidence of mental pain and suffering, the egregiousness of the alleged discrimination, and whether the public interest is best served by continuing the proceeding.
That expanded settlement framework may create earlier opportunities for respondents to resolve cases, particularly where a complainant refuses a settlement that DHR deems reasonable. However, the value of that process will depend heavily on how DHR evaluates settlement value, damages, public interest, and the reasonableness of objections.
What the Proposal Still Does Not Fix
Although the proposed amendments move DHR toward greater procedural structure, they do not go far enough to solve two critical problems in DHR proceedings.
First, the proposed regulations do not create a meaningful discovery dispute resolution process. Litigants may still be required to commence a special proceeding in Supreme Court to enforce subpoenas or compel disclosure. In fact, the proposed amendments appear to move in the opposite direction by eliminating language that previously allowed an Administrative Law Judge to "agree to the issuance of subpoenas" during the preliminary conference process.
That omission matters. DHR proceedings can involve complex employment, housing, education, public accommodation, and business records. Without a clear administrative mechanism to resolve discovery disputes, parties may continue to face delay, inefficiency, and unnecessary court intervention when evidence is withheld.
Second, the proposed regulations do not expressly state that DHR settlements and awards must be evaluated under New York's Consistency-of-Remedies Principle, as established in Thoreson v. Penthouse International, Ltd., 80 N.Y.2d 490 (1992), and affirmed in Thoreson v. Penthouse International, Ltd., 179 A.D.2d 29 (1st Dep't 1992).
To be sure, the proposed regulations reference the "reasonableness of offer," but they do not go into evidence of emotional distress. Stated otherwise, they do not expressly state that damages should be assessed by reference to comparable state and federal case law. That omission is particularly important with respect to emotional distress damages, where DHR determinations are often challenged based on alleged departures from judicial precedent.
Why This Matters for Respondents
For employers, housing providers, real estate brokerages, educational institutions, municipalities, public accommodations, and businesses, the proposed due process amendment could become an important defense tool. If a complaint is vague, conclusory, or insufficiently detailed, respondents may soon have a formal mechanism to demand clarity before proceeding to hearing.
That can impact litigation strategy from the outset. A more definite statement can help respondents identify relevant witnesses, preserve documents, evaluate exposure, prepare defenses, and assess whether early settlement is appropriate.
Stated differently, the proposed regulations are not merely about settlement. They are about how discrimination cases are framed, defended, valued, and resolved before DHR.
What Happens Next
The public comment period is open for 60 days before adoption.
While DHR's proposed amendments are framed largely as a settlement initiative, the more consequential development may be the agency's recognition that respondents are entitled to sufficient notice of the allegations against them. If adopted, the new procedure for seeking a more definite or detailed statement could become a significant due process tool in defending discrimination claims before the Division.
However, the proposal leaves unresolved major issues involving discovery enforcement and consistent damages valuation. Stakeholders should review the proposed regulations carefully and consider whether comments should be submitted before the rule is finalized.
Source Material
This article is based on the New York State Division of Human Rights' proposed amendments to 9 NYCRR Part 465, published in the June 17, 2026 edition of the New York State Register as I.D. No. HRT-24-26-00008-P.
View the Official New York State Register Publication
Download the Proposed Regulatory Text (PDF)
Discrimination defense requires more than knowing the law. It requires knowing how administrative agencies apply it. Lieb at Law, P.C. represents employers, housing providers, real estate brokerages, educational institutions, municipalities, public accommodations, and businesses in discrimination litigation and administrative proceedings throughout New York. If your organization is facing a claim before the New York State Division of Human Rights, contact Lieb at Law, P.C. to develop a strategic defense from the outset.
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