NY Governor Signs Law Requiring Panic Buttons at Major Retailers

People shop at a home improvement store in New York City, on Aug. 14, 2024. Spencer Platt/Getty Images

New York Governor Kathy Hochul on Thursday signed a new law requiring retailers to boost what it says are safety protections for store workers, including mandating that major retailers add panic buttons in all state locations.

Dubbed the “Retail Worker Safety Act,” the state Senate’s website indicated that the Democratic governor signed it on Thursday.

According to the text of the bill, the panic button refers to an actual “physical button” that will be installed in “easily accessible locations throughout the workplace” or a wearable or mobile phone-based button that would immediately call the local 911 answering point. It would then provide the dispatcher with employee location information and dispatch law enforcement to the workplace.

The requirement to add panic buttons specifically at retail workplaces is the first of its kind among U.S. states. While California adopted similar but broader workplace requirements earlier this year, it did not mandate panic buttons.

Walmart, the National Retail Federation (NRF), and the Food Industry Alliance of New York State (FIA) have previously opposed the New York measure, with Walmart arguing that there will likely be an increase in false alarms.

Other groups expressed worries about the associated costs. In the past, the retail groups have sent letters to the New York State Senate opposing panic buttons.

The measure will go into effect after six months, requiring that retailers with 10 or more employees to adopt a violence prevention plan and maintain records of violent incidents for at least three years. The panic button provision of the law will take effect on Jan. 1, 2027.

The Retail, Wholesale, and Department Store Union said in a statement that it supports the measure because it “centers on preventative action that puts protections for workers and shoppers in our retail stores into place before incidents happen.”

While the text and union largely made reference to workplace shootings, they also cited retail theft, which the National Retail Federation says costs U.S. retailers tens of billions of dollars each year. A separate report issued by the Retail Council of New York State found that some $4.4 billion is stolen from state retailers each year due to retail theft.

But the union said that “it is clear that we have reached a crisis point in this industry and it’s time to act” because of the increase in “daily violence” and threat of shootings statewide.

About a year ago, Target confirmed it was shutting down its location in New York City’s Harlem neighborhood due to “organized retail crime.”

“Before making this decision, we invested heavily in strategies to prevent and stop theft and organized retail crime in our stores, such as adding more security team members, using third-party guard services, and implementing theft-deterrent tools across our business,” Target said in a statement. “Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully.”

The firm added that it tried to take action to improve its business performance but had to close the Harlem location because the safety of its shoppers and employees was at risk due to theft and retail crime.

Last year, meanwhile, the National Retail Federation said that theft-associated losses increased to $112.1 billion last year from$93.9 billion a year before that.

“Retailers are seeing unprecedented levels of theft coupled with rampant crime in their stores, and the situation is only becoming more dire,” David Johnston, with the organization, said in a statement. “Far beyond the financial impact of these crimes, the violence and concerns over safety continue to be the priority for all retailers, regardless of size or category.”

Reuters contributed to this report.