Why Gyms and Fitness Clubs in New York and Connecticut Must Review Their Waivers Every Year
For owners of gyms, fitness centers and health clubs, liability waivers are essential tools for managing risk. Yet too often, businesses treat these as “set-it-and-forget-it” documents, putting a waiver in place and neglecting to review it again for years. An outdated waiver can be a liability in today’s heavily regulated fitness industry, especially in consumer-protective states like New York and Connecticut. If a dispute arises and one or more of the terms are out-of-date, the court may throw the entire waiver out. It’s important to review your waivers annually or whenever your business undergoes a significant change.
Changes to Laws or Your Operations
Both New York and Connecticut periodically update consumer-protection laws regulating gyms and health clubs. (Tennis and racquet clubs may be subject to slightly different laws.) Changes, which are often minor, may range from cancellation period updates and new bonding requirement thresholds to novel court rulings that impact waiver enforceability. Failure to update your paperwork accordingly can leave you vulnerable in the event of a lawsuit.
It’s also important to review your waivers if your business undergoes a significant change. For instance, relocation to a new facility, a change in ownership, or the addition of a youth program would necessitate changes to your waiver documents.
Limits to Disclaiming Negligence
Many gym owners are surprised to learn what limited liability waivers cover, particularly in New York. Businesses in New York cannot waive responsibility for their own negligence. New York law (General Obligations Law § 5-326) makes any clause that tries to release a health club from liability for its own negligence toward paying members void as against public policy. In other words, if a member is injured because the club failed to use reasonable care (e.g., a machine malfunctions due to poor maintenance, or an instructor gives negligent advice) the club cannot escape liability through a waiver. Connecticut is more open to enforcing liability waivers, but they are closely scrutinized and can be struck down if they are overly broad or violate public policy, particularly in the health-club context. Courts require that exculpatory clauses be clear, explicit about releasing negligence claims, and not contrary to public policy. Waivers cannot protect against conduct that crosses into recklessness or intentional wrongdoing, and even for ordinary negligence, Connecticut courts may refuse to enforce a waiver if it would unduly endanger consumers.
While New York does not allow you to waive your own negligence, it does recognize the legal doctrine of assumption of risk. A club member is assumed to understand the inherent, obvious risks of an activity, such as running on a treadmill, participating in a boxing class, or using free weights. Your waiver should reinforce this concept with clear, conspicuous language affirming that members recognize and voluntarily assume these inherent risks. Courts expect certain disclosures to be in bold, all caps, or otherwise highly visible.
Membership Fees and Contract Terms
Both states impose financial-security requirements on health clubs, which can include escrows, bonds, or contributions to a guaranty fund, particularly when clubs take significant prepayments or sell longer-term contracts. In New York, for example, health clubs must generally maintain an escrow or bond unless they meet specific conditions relating to contract length, total price, and how payments are collected. Connecticut uses a registration and guaranty-fund system with strict rules on maximum contract length and how much can be paid up front. To avoid this obligation, many clubs set rates just below the statutory threshold – but the price must be a true monthly rate, not bundled with initiation fees or hidden charges. Additionally, New York prohibits charging more than $3,600 per year for health club services. If your contract exceeds these limits, you risk contract unenforceability and penalties.
Mandatory Refund and Cancellation Policies
Your agreement must clearly outline members’ rights regarding refunds and cancellations. In both states, members have a three-day cooling-off period to cancel a health club contract after receiving a copy of it, with a full or pro-rated refund as required by statute. A member may also cancel their membership and receive a pro rata refund if the facility permanently closes or, in New York, relocates more than 10 miles from its original site. In both New York and Connecticut, members may cancel if they move more than 25 miles from any affiliated location or if they are unable to participate for at least six months due to a documented medical condition. Similarly, upon a member’s death, a pro rata refund is owed to the member’s estate. Connecticut requires refunds (and written confirmation of cancellation) within 15 business days of proper notice; New York requires refunds within 10 business days. Waivers that omit these rights or that provide an inaccurate address or outdated form of notice can be challenged. New York law prohibits deceptive practices and expects health clubs to provide straightforward, reasonable cancellation methods. Practices that make cancellation unduly burdensome, like insisting on in-person cancellation with limited hours or imposing unnecessary hurdles, have drawn regulatory scrutiny and can be treated as deceptive.
Recordkeeping and Risk Management Best Practices
As the statute of limitations for contract claims is six years in both states, gyms should keep records for at least that period. When waivers are signed, staff should verify that the name at the top of the waiver matches the signature and that the signer is the actual participant (or the parent/guardian of a minor, if applicable).
If you are sued and have not updated your waiver in a decade, courts may view that as evidence of disregard for consumer rights, which will likely weaken your defense. Conversely, if you review and update your waivers annually, courts often take that into account, especially if a law changed mid-year and you were compliant up until that point. Courts will also consider whether the error was material to the contract and if the contract appears fair and transparent.
Reviewing your waiver documents on an annual basis with a lawyer experienced in fitness-industry contracts is an important facet of risk management best practices. It is also critical that you periodically review your liability insurance coverage to ensure it aligns with your club’s current operations.
Andrea Coppola, an associate at FLB Law in Westport, Conn., is a trusted advisor to gyms, fitness centers, and health clubs that operate in New York and Connecticut. She draws on her multidisciplinary foundation and expertise in commercial contracts to deliver clear, strategic advice tailored to each client’s specific goals. Contact Andrea at coppola@flb.law or (475) 236-5208. For more information about FLB Law, click here.