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As previously discussed here, the New York Trapped at Work Act (the “Act”) was enacted on December 19, 2025, prohibiting employers from requiring employees or applicants to sign certain “stay-or-pay” agreements. Shortly after the Act went into effect, amendments were proposed to clarify application of the Act. The amendments were passed by both houses of the New York State Legislature and await the Governor’s signature, which is expected shortly.
The amendments to the Act would delay its effective date until December 19, 2026 and:
- Create an exception for financial bonuses, relocation assistance, other non-educational incentives, or other payments or benefits not tied to specific job performance, unless the employee was terminated for any reason other than misconduct or the duties or requirements of the job were misrepresented to the employee
- Permit repayment for property the employer leased or sold to the employee, if it was voluntary
- Create an exception for certain Voluntary Tuition Repayment Agreements
- Allow employees to submit complaints to the New York Department of Labor (“DOL”)
- Add factors for the Department of Labor (“DOL”) to consider when assessing penalties under the Act
- Narrow key definitions, by limiting coverage from broadly defined “workers” to “employees”
Once signed by the Governor, employers will have additional time to review agreements with their employees to ensure timely compliance with the requirements of the Act. We will continue to monitor further developments.
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