March Tip of the Month: New York Codifies Disparate Impact Liability Under the State Human Rights Law
On December 19, 2025, Governor Kathy Hochul signed into law an amendment to the New York State Human Rights Law that expressly recognizes “disparate impact” as a basis for proving unlawful discrimination.
Under this theory of liability, even facially neutral workplace policies may be deemed discriminatory if they disproportionately disadvantage a protected group, regardless of intent. The amendment also codifies a burden-shifting liability framework. An employee must first demonstrate that a policy or practice has a discriminatory effect. The employer then has the opportunity to establish that the policy or practice is job-related, consistent with business necessity, and that such necessity cannot be achieved through a less discriminatory alternative. New York employers should continue to evaluate or audit the impact of their policies and practices—including the use of emerging AI tools—to assess whether they may inadvertently create disproportionate effects on protected groups, and take proactive steps to mitigate potential liability.
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Before proceeding, please note: If you are not a current client of Perkins Coie, please do not include any information in this e-mail that you or someone else considers to be of a confidential or secret nature. Perkins Coie has no duty to keep confidential any of the information you provide. Neither the transmission nor receipt of your information is considered a request for legal advice, securing or retaining a lawyer. An attorney-client relationship with Perkins Coie or any lawyer at Perkins Coie is not established until and unless Perkins Coie agrees to such a relationship as memorialized in a separate writing.