A bill amending New York State's recently enacted "stay or pay" law has been introduced in the State legislature.
A bill amending New York State's recently enacted "stay or pay" law has been introduced in the State legislature.
As we previously reported, on December 19, 2025, Governor Kathy Hochul signed into law the Trapped at Work Act which, effective immediately, prohibits employers from requiring as a condition of employment that any current or prospective worker execute an "employment promissory note." The Act's restriction covers "any instrument, agreement, or contract provision that requires a worker to pay the employer, or the employer's agent or assignee, a sum of money if the worker leaves such employment before the passage of a stated period of time," including any provision stating that such repayment "constitutes reimbursement for training provided to the worker by the employer or by a third party." However, the Act contains certain exclusions, including agreements that require a worker to repay the employer any amounts advanced to the worker, unless the amounts were used to pay for required training.
The newly proposed amendments (A.9452/S.8822) follow Governor Hochul's statement in her bill signing memo in which she expressed concerns about ambiguities in the Act as enacted and indicated that the state legislature had agreed to consider chapter amendments.
The amendments as presently drafted would expressly carve out any agreement that "requires the employee...
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