New York State's Trapped At Work Act Takes Effect

Companies in New York State must review their agreements with their workers to comply with new rules concerning "pay or stay" agreements. Specifically, New York's Trapped At Work Act bans companies from requiring workers to pay companies if they leave their job within a specified timeframe. The Act was signed by Governor Hochul on December 19, 2025, and took effect immediately.

Prohibition

Companies are prohibited from compelling workers to enter into "employer promissory notes" as a condition of their jobs. The Act defines "employer promissory notes" as any agreement requiring workers to pay a sum of money if the worker leaves the job before the passage of a stated period of timed. The Act explicitly includes training reimbursement agreements within this definition but does not limit its scope to such arrangements. All such agreements deemed to be employer promissory notes are void and unenforceable pursuant to the Act.