Trapped at Work Act

02/27/2026 / Last updated : 02/27/2026 editor 1 Legal

UPDATE: New York State Amends “Stay or Pay” Ban

The New York “Trapped at Work Act” prohibits employers from requiring an “employment promissory note” as a condition of employment — defined broadly to include any agreement that requires payment to the employer for leaving before a stated time. On February 13, 2026, Governor Hochul signed the chapter amendment to the law, delaying the effective date by […]

12/31/2025 / Last updated : 12/31/2025 editor 1 Legal

New York State Bans “Stay or Pay” Agreements

New York State enacted the Trapped at Work Act on December 19, 2025, which amended the New York Labor Law to limit an employer’s ability to enter into an “employment promissory note” with its workers. Effective immediately, New York employers are barred from utilizing certain “stay or pay” contracts with workers. An “employment promissory note” is defined […]