Just weeks after New York Governor Kathy Hochul signed a law prohibiting certain “stay or pay” agreements, state lawmakers have proposed new amendments that, if enacted, would allow employers to require reimbursement for educational expenses for degrees or licenses that qualify employees for other jobs with other employers but that would limit repayment agreements for bonuses, relocation expenses, or other non-educational incentives to circumstances when employees are terminated for other than “misconduct.”

• New York Assembly Bill A9452 seeks to amend the newly enacted Trapped at Work Act, which prohibits stay or pay agreements that require employees to repay training expenses if they leave their job.
• The proposed chapter amendments would narrow the scope of the original law to apply specifically to employees, excluding independent contractors and other workers from the prohibitions on reimbursement agreements.
• The amendments would also allow employers to enter written agreements with employees providing for the repayment of certain educational expenses for degrees, skills, or qualifications not required for the job with the employer or that are beyond the employer’s specific business.
• The amendments also provide that repayment agreements for bonuses, relocation assistance, and other non-educational incentives or payments remain permissible, unless the employee was “terminated for any reason other than misconduct or the duties or requirements of the job were...

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