New York Employers
Last Friday December 19, 2025, Governor Hochul signed the “Trapped At Work Act” into effect, banning employment promissory notes and similar “stay or pay” clauses that require workers to repay money if they leave a job early, including repayment for training costs.
The law applies broadly to most workers and employers, but excludes things like payroll advances, property sales, sabbatical agreements, and collective bargaining deals.
Employers violating the law can face civil penalties and may have to pay workers’ attorney fees, though workers can’t sue on their own. It’s still unclear if the law will apply retroactively, and further guidance from the NY Department of Labor in the form of regulations is expected.
You can read the full text of the law here: Bill Search and Legislative Information | New York State Assembly
Stay tuned for more developments on this in the new year.