At a Glance

• 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 triggers, educational expenses, misconduct, and optional advances of performance-based payments and paid leave.

The New York State Department of Labor (NYSDOL) issued guidance on the Trapped at Work Act, addressing several important questions about existing agreements, voluntary benefits, and permissible repayment obligations, about which we reported previously.¹ The guidance provides employers with a clearer framework for reviewing repayment arrangements before the Act’s December 19, 2026 effective date.

Effective Date and Existing Agreements

NYSDOL’s guidance confirms that the Act applies to new agreements, or new or amended terms in existing agreements, entered into on or after December 19, 2026. This resolves an open question because the chapter amendment did not expressly address whether it applied to agreements executed before the effective date. Under this interpretation, an existing repayment obligation does not become subject to the Act merely because it continues after December 19, 2026. Employers should nevertheless review new agreements and amendments entered into on or after that date for compliance.

Voluntary...

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