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ARTICLE · 16 MARCH 2026

New York Amends Trapped At Work Act

Enacted on December 19, 2025, the Trapped at Work Act (the Act) added a new Article 37 to the New York Labor Law. It targets "employment promissory notes" – contract terms requiring workers to pay money back to the employer if they leave before a specified period, including many training-repayment provisions.

United StatesEmployment and HR

Highlights

  • Gov. Kathy Hochul on February 13, 2026, signed amendments to New York's "Trapped at Work Act," which restricts "stay-or-pay" repayment provisions in employment agreements.
  • The law now takes effect on February 13, 2027, giving employers an extra year to comply. New York employers should use the extended lead time to review and, where necessary, overhaul offer letters, promissory notes and reimbursement arrangements.
  • The amendments narrow the law's reach to "employees" only, creating a tight carve-out for reimbursement of certain "transferable credentials," and allow repayment of certain benefits (e.g., bonuses and relocation assistance) when an employee is terminated for misconduct.

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