Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 07 JANUARY 2026

New York "Trapped At Work Act" Now In Effect

Ford Harrison LLP
Explore more from Ford Harrison LLP

A bill recently signed into law by New York Governor Hochul and now in effect prohibits certain "stay or pay" agreements that require employees to repay their employer for training costs if the employee resigns...

United StatesEmployment and HR
Gregory B. Reilly
Gregory B. Reilly
Richard Bahrenburg
Richard Bahrenburg
Author LinkedIn connections

A bill recently signed into law by New York Governor Hochul and now in effect prohibits certain "stay or pay" agreements that require employees to repay their employer for training costs if the employee resigns before a specified period. The new law states that the "execution of an employment promissory note as a condition of employment is unconscionable, against public policy and unenforceable, and any such note shall be null and void."

Significantly, the law (as written) does not provide employees with an express private right to file lawsuits, but employees may recover attorneys' fees if they are sued by their employer to enforce an unlawful repayment agreement. Moreover, the New York State Department of Labor can impose civil penalties ranging from $1,000 to $5,000 per violation.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

IRS Issues New Revenue Procedure

The IRS has released Revenue Procedure 2026-24, establishing new inflation-adjusted limits for Health Savings Accounts and high-deductible health plans effective in 2027. These updates include increased contribution limits, higher minimum deductibles, and expanded out-of-pocket maximums, along with new provisions for direct primary care service arrangements under the One, Big, Beautiful Bill Act. How will these changes impact employee benefit planning and healthcare coverage strategies?
United StatesEmployment and HR
Winston Taylor
Winston Taylor
Article

Treasury Issues Temporary Regulations On Trump Accounts And Contributions

The U.S. Department of the Treasury and IRS recently issued temporary regulations that provide an immediately effective framework for establishing and administering “Trump Accounts,” including broad automatic enrollment and large-scale contributions funded by governmental and charitable donors. The regulations became effective September 30, 2026, apply to taxable years beginning on or after January 1, 2026, and expire September 30, 2029.
United StatesEmployment and HR
Fennemore Craig, P.C.
Fennemore Craig, P.C.
Article

Allegheny County Council Passes Paid Parental Leave Policy

On Tuesday, October 20, 2026, the Allegheny County Council passed legislation requiring employers with at least 15 workers to provide 12 weeks of paid parental leave, ending months-long debate on the proposal. We previously reported on the initial 18-week proposal in May 2026 (summarized here), the revised proposed legislation (summarized here), and the Allegheny County Board of Health passing the legislation (summarized here). The measure was passed in an 11-4 vote. It will become effective in one year, as County Executive Sara Innamorato signed the bill on, October 22, 2026.
United StatesEmployment and HR
Buchanan Ingersoll & Rooney
Buchanan Ingersoll & Rooney
Article

DOL Announces Enforcement Actions Against Employers In H-1B And PERM Fraud Probe

The Trump Administration has launched an unprecedented enforcement action suspending permanent labor certification processing for eight major employers, linking immigration sponsorship to layoff histories and recruitment practices. This development signals a fundamental shift in how the government evaluates employer access to H-1B and green card programs, with investigations already underway and subpoenas served.
United StatesEmployment and HR
Mayer Brown
Mayer Brown
Article

Countdown To Compliance: Employer Preparations For Nov. 2026 OSHA HazCom Deadlines

OSHA's revised Hazard Communication Standard requires covered employers to update chemical labels, written hazard communication programs, and employee training by November 20, 2026. The revisions align with the UN's Globally Harmonized System and introduce new hazard classifications, downstream use considerations, and updated requirements for compressed gases and aerosols. Employers must navigate separate compliance timelines for chemical mixtures while ensuring their workplace practices meet the updated st
United StatesEmployment and HR
Jackson Lewis P.C.
Jackson Lewis P.C.
Article

Maryland’s Ban On Mandatory Employer Meetings: Notice Deadline Looms

Maryland employers must comply with new posting requirements under the Worker Freedom Act, which prohibits penalizing employees who decline attendance at employer-sponsored meetings on religious or political matters. The Maryland Department of Labor has released official notices in English and Spanish that must be displayed prominently in workplaces and provided to new hires starting November 1, 2026.
United StatesEmployment and HR
Jackson Lewis P.C.
Jackson Lewis P.C.
Article

DOL Takes Another Step Towards Eliminating The 80/20 Rule For Tipped Employees

On October 19, 2026, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin No. 2026-1, formally withdrawing three opinion letters that served as the foundation for the so-called “80/20 Rule” governing tipped employees under the Fair Labor Standards Act (FLSA). The DOL also confirmed that its current enforcement guidance does not impose a percentage-based limit on the time a tipped employee may spend performing related, non-tip-producing duties. Instead, the inquiry focuses on whether the employee’s duties are related to the employee’s tipped occupation.
United StatesEmployment and HR
Ford Harrison LLP
Ford Harrison LLP
Article

EntertainHR: Home Runs And Hard Caps: The Looming MLB Labor Battle

As Major League Baseball's collective bargaining agreement approaches its December 2026 expiration, team owners are proposing a hard salary cap for the first time since the 1994 strike that cancelled the World Series. With the players' union historically opposed to salary caps and both sides holding firm on their positions, the league faces a real possibility of another work stoppage that could disrupt the 2027 season.
United StatesEmployment and HR
Ford Harrison LLP
Ford Harrison LLP
Article

Noncompete News Alert: Virginia Tightens the Rules on Noncompetes - What Employers Need to Know

Virginia's General Assembly has significantly expanded restrictions on noncompetition agreements, now covering most hourly employees and healthcare professionals while introducing new severance requirements for enforcement. Employers must navigate these evolving rules alongside traditional common law standards to avoid legal pitfalls when drafting or enforcing restrictive covenants.
United StatesEmployment and HR
Ford Harrison LLP
Ford Harrison LLP
Article

Get Ready Connecticut Employers: New Laws Take Effect October 1, 2026

Connecticut employers face significant changes to employment laws taking effect October 1, 2026, including expanded pay transparency requirements, new electronic monitoring notices, and AI-related disclosure obligations. The state legislature has amended multiple employment statutes affecting hiring practices, workplace monitoring, lactation accommodations, and employee protections. These changes require proactive policy reviews to ensure compliance and avoid civil penalties.
United StatesEmployment and HR
Ford Harrison LLP
Ford Harrison LLP
Article

EEOC Response Deadlines May Be Shrinking: What Employers Need To Know About The 15-Day Trend

The Equal Employment Opportunity Commission (EEOC) may be enforcing a shortened deadline for employers to submit position statements in response to a Charge of Discrimination (Charge). Although the EEOC’s official policy does not appear to have changed, and its website still states that an employer “generally has 30 days to gather the information requested and to submit its position statement and attachments to the EEOC,” a growing number of employers across the United States are receiving notice of Charges that set a fifteen-day deadline for position statements, and extensions have become harder to obtain.
United StatesEmployment and HR
Ford Harrison LLP
Ford Harrison LLP
Article

Tax-Advantaged Employer Matching Contributions To Trump Accounts Now Available

The U.S. Department of Treasury has issued guidance on employer-sponsored Trump Account contribution programs, creating new tax-advantaged opportunities for employers to support employee savings for their children's future. Employers must navigate complex requirements analogous to dependent care assistance programs, including nondiscrimination rules, written plan documents, and compliance obligations under both the Internal Revenue Code and potentially ERISA. What are the key design considerations, tax impl
United StatesEmployment and HR
Ford Harrison LLP
Ford Harrison LLP