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The New York State Department of Labor (NYSDOL) confirms that the Trapped at Work Act applies to new agreements, or new or amended terms in existing agreements, entered into on or after December 19, 2026. Truly voluntary repayment agreements that are separate from accepting or maintaining employment fall outside the Act’s prohibition. The guidance clarifies permissible repayment […]
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 […]
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 […]