In response to concerns raised by Governor Kathy Hochul and stakeholders in the employment sector regarding ambiguities in the Trapped at Work Act, the New York Legislature has quickly introduced Chapter Amendments (A.9452/S.8822) to clarify and refine the law’s scope and application. Notably, the amendments – introduced on January 6, 2026 – would limit coverage to “employees” and carve out exceptions for tuition repayment agreements and certain non-educational repayment agreements, such as bonuses and relocation payments not tied to specific job performance, provided the employee is not terminated for reasons other than misconduct or the employer misrepresented the job’s duties and requirements. The amendments would also postpone the Act’s effective date from December 19, 2025 to December 19, 2026.
Overview of the Trapped at Work Act
As we previously covered, on December 19, 2025, Governor Kathy Hochul signed the Trapped at Work Act (the “Act”) into law, prohibiting employers from requiring any worker or prospective worker to sign agreements that obligate the individual to repay moneys paid by the employer if the worker leaves before a designated period. These agreements – commonly referred to as “stay-or-pay” agreements – are deemed unconscionable, contrary to public policy, and unenforceable under New York law.
The Act is notable for its expansive scope, which drew criticism for both its ambiguities and the breadth of its coverage. For purposes of analyzing the...
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