{"id":2430,"date":"2025-12-31T09:52:41","date_gmt":"2025-12-31T14:52:41","guid":{"rendered":"https:\/\/iiicareer.com\/eng\/?p=2430"},"modified":"2025-12-31T09:50:09","modified_gmt":"2025-12-31T14:50:09","slug":"new-york-state-bans-stay-or-pay-agreements","status":"publish","type":"post","link":"https:\/\/iiicareer.com\/eng\/2025\/12\/31\/new-york-state-bans-stay-or-pay-agreements\/","title":{"rendered":"New York State Bans \u201cStay or Pay\u201d Agreements"},"content":{"rendered":"
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New York State enacted\u00a0the Trapped at Work Act on December 19, 2025, which amended the New York Labor Law to limit an employer\u2019s ability to enter into an \u201cemployment promissory note\u201d with its workers.<\/p>\n\n\n\n

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Effective immediately,\u00a0New York employers are barred from utilizing certain \u201cstay or pay\u201d contracts with workers.<\/p>\n\n\n\n

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An \u201cemployment promissory note\u201d is defined as \u201cany instrument, agreement, or contract provision that requires a worker to pay their employer, or the employer\u2019s agent or assignee, a sum of money if the worker leaves\u201d the job before a certain amount of time has passed. This explicitly includes \u201creimbursement for training provided to the worker by the employer or by a third party.\u201d However, it excludes the following:\u00a0
– Repayment of money that was advanced to the worker, unless the money was used to pay for training related to the worker\u2019s employment\u00a0
– Payment for property that it has sold or leased from the employer to the worker\u00a0
– Agreements that require educational personnel to comply with sabbatical leaves\u00a0
– Agreements entered into as part of a broader collective bargaining agreement<\/p>\n\n\n\n

<\/p>\n\n\n\n

Morgan Lewis:<\/em>
New York State Enacts \u2018Trapped at Work Act\u2019 to Prohibit Use of Employment Promissory Notes<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

New York State enacted\u00a0the Trapped at Work Act on December 19, 2025, which amended the New York Labor Law to limit an employer\u2019s ability to enter into an \u201cemployment promissory note\u201d with its workers. Effective immediately,\u00a0New York employers are barred from utilizing certain \u201cstay or pay\u201d contracts with workers. An \u201cemployment promissory note\u201d is defined […]<\/p>\n","protected":false},"author":1003,"featured_media":1680,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"sns_share_botton_hide":"","vkExUnit_sns_title":"","_vk_print_noindex":"","sitemap_hide":"","_veu_custom_css":"","veu_display_promotion_alert":"common","vkexunit_cta_each_option":"","header_top_description":"","footnotes":""},"categories":[16],"tags":[323,322,324],"class_list":["post-2430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-stay-or-pay-agreements","tag-new-york-state","tag-trapped-at-work-act"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t