Key Takeaways

• Gov. Kathy Hochul signed a chapter amendment to the New York Trapped at Work Act, a law prohibiting certain agreements that require workers to reimburse employers for payments if they leave before a set period of time.
• The amendment pushes back the Trapped at Work Act’s effective date to Dec. 19, 2026, giving employers time to review and revise their employee repayment agreements.
• The amendment clarifies that common repayment agreements used for sign-on bonuses and relocation allowances are permissible, and it also allows voluntary tuition repayment agreements that relate to “transferable” educational credentials, subject to specific conditions.

As detailed in our prior alert, on Dec. 19, 2025, New York enacted the Trapped at Work Act (the Act), which bans “employment promissory notes” – agreements or contract provisions obligating workers to repay employers if they depart before a specified period – as a condition of employment. Almost immediately thereafter, on Jan. 6, the New York Legislature proposed a chapter amendment that would change the Act’s effective date and expand and further clarify certain exemptions. On Feb. 13, Hochul signed the chapter amendment (the Amendment), giving employers some much-needed relief from the original Act’s onerous provisions.

Effective Date and Scope of the Act

The Amendment pushes back the Act’s effective date to Dec. 19, 2026.

The Amendment also significantly narrows the Act’s scope. While it previously applied to...

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