Less than a month after Governor Hochul signed into law the “Trapped at Work Act” (the “Act”) which took effect immediately and which we reported on here, the New York State Legislature introduced a bill amending the Act. The proposed amendments (the “Amendments”) would make some significant changes to the existing Act’s prohibitions on employment “promissory notes,” including by providing clarity on what sorts of “stay or pay” arrangements would remain lawful. Many of the Amendments respond to statements in Governor Hochul’s signing memorandum in which she expressed concerns about certain ambiguous aspects of the Act and indicated that her signing of the Act was contingent upon the Legislature’s agreement to certain chapter amendments. Below, we provide an overview of the salient portions of the Act impacted by the Amendments and offer some compliance-based suggestions.
The Amendments Would Delay the Effective Date by at Least One Year.
The Amendments would delay the effective date of the Act to one year after it becomes law. While the Amendments do not specify whether this one-year extension is measured from the date of original enactment (i.e., December 19, 2025) or the date on which the Amendments become enacted, either extension would provide employers additional time to come into compliance with the new law.
The Amendments Simplify the Definitions of Covered Employees and Employers.
The Act currently applies to all “workers,” which includes employees, independent...
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