Employment Discrimination Law Updated in NYS - Discriminatory Effect is Enough

On December 19, 2025, the New York State Human Rights Law was extended by S8338, in adding a new subdivision 5-a to Executive Law 296, which provides for proving discrimination in employment without discriminatory intent, just discriminatory effect. Under the law, a discriminatory effect means that a practice "actually or predictably results in a disparate impact on a group of persons, because of their membership in a class protected under this section."  

To prove a case under subdivision 5-a, known as disparate impact discrimination, there is now a burden shifting formula:

• First, the Complainant must prove that "a challenged practice caused or predictably will cause a discriminatory effect."
• Second, the Respondent must prove "that the challenged practice is job related for the position in question and consistent with business necessity." 
• Third, the Complaint must prove "that the business necessity could be served by another practice that has a less discriminatory effect."

If a workplace policy disproportionately harms a protected group, intent no longer matters. Talk to Lieb at Law about your exposure or your claim.

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Is McDonnell Douglas Dead in NYS' Human Rights Law?

On December 19, 2025, NYS enacted A4040A and S8338, which defines standards for disparate impact discrimination claims in housing and employment respectively, but each also slipped in an easter egg, at new Executive Law 296(5-a)(e), which dramatically changes how disparate treatment discrimination claims will be defended under state law. Specifically, the subsection provides that "[a] demonstration that a practice is supported by a legally sufficient justification, as defined in paragraph (c) of this subdivision, may not be used as a defense against a claim of intentional discrimination." To be certain, under McDonnell Douglas Burden Shifting, which has been utilized to prove intentional discrimination since 1973, the defense of a case was the submission of proof of a non-discriminatory reason for the challenged act. It appears that defense is now dead in NYS - this is a seismic change in NYS discrimination law with ripples unknown. 

If you’re bringing or defending a discrimination case in New York, the rules just changed. Speak with Lieb at Law before you rely on outdated defenses.

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Housing Discrimination Law Updated in NYS - Discriminatory Effect is Enough

On December 19, 2025, the New York State Human Rights Law was extended by A4040A, in adding a new subdivision 5-a to Executive Law 296, which provides for proving discrimination in housing without discriminatory intent, just discriminatory effect. Under the law, a discriminatory effect means that a practice "actually or predictably results in a disparate impact on a group of persons or creates, increases, reinforces, or perpetuates segregated housing patterns because of race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, sex, age, disability, marital status, status as a victim of domestic violence, lawful source of income or familial."

To prove a case under subdivision 5-a, known as disparate impact discrimination, there is now a burden shifting formula:

• First, the Complainant must prove that "a challenged practice caused or predictably will cause a discriminatory effect."
• Second, the Respondent must prove "that the challenged practice is necessary to achieve one or more substantial, legitimate, nondiscriminatory interests of the respondent."
• Third, the Complaint must prove "that the substantial, legitimate, nondiscriminatory interests supporting the challenged practice could be served by another practice that has a less discriminatory effect."

If a housing policy shuts people out without saying it outright, that can now be illegal. Talk to a fair housing litigator at Lieb at Law, P.C. 

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Training Repayment Just Became Illegal in New York - Clawbacks Limited in NYS by the Trapped at Work Act

New York State has enacted the Trapped at Work Act by A584C, effective on December 19, 2025. This law expressly precludes employers from recovering on clawbacks for reimbursement of the cost of training and the law extends to protect not just employees, but also independent contractors, interns and many other workers. To be certain, while the law expressly prohibits and renders void any employee promissory note that is required as a condition of employment, it also excludes from its auspices, while expressly permitting, agreements under which a worker has to repay "sums advanced to such worker by the employer" that were not relevant to training. That said, the law provides workers with the ability to recover attorneys' fees if they prevail by rendering a promissory note sought to be enforced by the employer through suit, void. Additionally, the government can seek $1K to $5K per violation fines for violations. 

Facing a training clawback or promissory note? Talk to a New York litigator at Lieb at Law, P.C. before you pay a dime.

New NY Foreclosure Law Forces Lenders to Apply Your Payments

A very important foreclosure law bill, Assembly Bill A2739, which we discussed at How New York Assembly Bill A2739 Could Give Homeowners a Leg Up in Foreclosure Defense was signed and is effective as of December 12, 2025.

Now, homeowners in default a real edge against foreclosure. The law requires mortgage lenders to accept and immediately apply payments made in reliance on a payoff statement – no more excuses, no more “we’ll hold it in suspense.” As long as you pay where and how your lender says to, your money counts toward your loan balance.

If you’re facing foreclosure and want to make sure every payment counts, contact Lieb at Law, P.C. – because now, your money can finally work for you.