Nancy Gunzenhauser Popper, Naomi Friedman, Katherine Heaney and Gretel Zumwalt at the Law Firm of Epstein Becker & Green, P.C. report – via The National Law Review, that New York Governor Kathy Hochul signed three employment-related Bills into law and vetoed a fourth before the end of 2025.
The three new laws - two of which took immediate effect upon signature, have a wide range of implications for employers:
“Stay or Pay” Banned: Most contracts creating debts for Workers who leave employment - known as “TRAP” agreements, are now void and unenforceable in New York. Limited exceptions, including for payroll advances, remain permissible.
Background Check Limits Expanded: With some exceptions, New York employers will be barred from using consumer credit history to evaluate job candidates.
Disparate Impact Codified: New York State Law now formally recognizes discrimination claims can be proven based on unequal outcomes of a policy or practice.
The vetoed fourth Bill would have created a blanket provision that Governor Hochul characterized as “putting a thumb on the scale” in favor of Employees in legal disputes with New York employers.
For More On The “Trapped At Work” Act, The Ban On The Use Of Consumer Credit History In Employment Decisions, The Disparate Impact That Can Prove Unlawful Employment Practices, And The Rejection Of The Remedial Construction Of New York Labor Law, Go To:
Kyiv on Monday dismissed claims that Ukraine passed fake intelligence to Washington to test leaks to Moscow, calling the allegations “distorted information.” The rumors began circulating after Vin...