Governor Kathy Hochul has signed into law a bill amending New York State's "stay or pay" law. Among key changes, the law's enforcement date has been delayed by one year.

Governor Kathy Hochul has signed into law a bill amending New York State's "stay or pay" law. Among key changes, the law's enforcement date has been delayed by one year.

As we previously reported, on December 19, 2025, Governor Hochul signed into law the Trapped at Work Act which prohibits employers from requiring as a condition of employment that any current or prospective worker execute "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." The Act as originally drafted contained certain exclusions; however, Governor Hochul raised concerns about ambiguities in the original Act thus spurring prompt amendment of the original law. The original Act also provided that it was effective immediately.

Under the Act as now amended, the Act will expressly carve out any agreement that "requires the employee to reimburse the employer for the cost of tuition, fees, and required educational materials for a transferable credential" where the agreement:

• is set forth in a written contract that is...

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