New York employers who require repayment of signing bonuses and tuition payments from employees who voluntarily resign within a given period of time after payment may breathe a sigh of relief. Notwithstanding the breadth of New York's recently enacted Trapped at Work Act, on January 28, 2026, the New York State legislature passed proposed amendments that are expected to be signed by Governor Hochul.
The current version of the Act prohibits companies from requiring workers to enter into "employer promissory notes"—any agreement requiring workers to pay a sum of money if the worker leaves their job before a stated period of time. The Act specifically includes training reimbursement agreements within this definition, but is unclear whether it applies to agreements concerning tuition reimbursement, relocation assistance, and incentive payments not tied to performance. If signed by the Governor, the amendments will carve out specific exemptions for these types of agreements; narrow the persons and entities to which the Act applies; and delay the effective date of the Act to December 19, 2026.
Under the amendments, the Act will narrow its coverage from "workers," including independent contractors and volunteers, to "employees," which the amendments define as "any person employed for hire by an employer in any employment."
Furthermore, the Act's currently broad definition of "employer," encompassing individuals and entities (including subsidiaries and...
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