{"id":101207,"date":"2026-01-15T15:44:17","date_gmt":"2026-01-15T15:44:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/101207\/"},"modified":"2026-01-15T15:44:17","modified_gmt":"2026-01-15T15:44:17","slug":"new-york-trapped-at-work-act-now-in-effect-but-may-be-amended-employee-rights-labour-relations","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/101207\/","title":{"rendered":"New York “Trapped At Work Act” Now In Effect, But May Be Amended – Employee Rights\/ Labour Relations"},"content":{"rendered":"

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\nFordHarrison is a labor and employment firm with attorneys in 29 offices, including two affiliate firms. The firm has built a national legal practice as one of the nation’s leading defense firms with an exclusive focus on labor law, employment law, litigation, business immigration, employee benefits and executive compensation. <\/p>\n

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\n As discussed in our previous Alert, a bill recently signed into law by New York Governor Hochul and now in effect prohibits certain “stay or pay” agreements that require employees to repay… \n <\/p>\n


\n United States
\n Employment and HR \n <\/p>\n


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As discussed in our previous Alert<\/a>, a bill<\/a> recently signed into law by New York
\nGovernor Hochul and now in effect prohibits certain “stay or
\npay” agreements that require employees to repay their employer
\nfor training costs if the employee resigns before a specified
\nperiod. As mentioned previously, however, there are some
\nambiguities with the new law, including, for example, where
\ntraining costs might also be characterized as tuition assistance
\nprograms.<\/p>\n

The Governor has reportedly reached an agreement with the
\nLegislature to resolve some of these ambiguities in the next
\nlegislative session. The currently proposed amendments to the new
\nlaw include the following:<\/p>\n


\nChanging the effective date of the “Trapped at Work
\nAct” to December 19, 2026. <\/p>\n


\nClarification that tuition repayment agreements are permissible
\nif the education credential is not a condition of employment; the
\namount is based upon the employer’s actual cost, is clearly
\ndisclosed and capped; the employee’s repayment obligation is
\nprorated with no acceleration for repayment or payment required
\nupon termination of employment, except if termination was for
\nmisconduct. <\/p>\n

See https:\/\/assembly.state.ny.us\/leg\/?default_fld=%0D%0A&leg_video=&bn=A09452&term=2025&Text=Y<\/a>.
\nWe will keep you updated about when, if at all, any such amendments
\nare made to the existing law. In the interim, requiring departing
\nemployees to pay for their training costs is potentially
\nillegal.<\/p>\n

The Bottom Line<\/p>\n

Accordingly, New York employers should review and, where
\nnecessary, revise offer letters, employment agreements, or any
\nother agreements between the employer and employees that may
\ninclude repayment terms. We note that the statute’s language
\ndoes not expressly grandfather existing agreements so employers
\nwould be prudent to assume that the new law might apply
\nretroactively until the courts make a determination.<\/p>\n

The content of this article is intended to provide a general
\nguide to the subject matter. Specialist advice should be sought
\nabout your specific circumstances.<\/p>\n

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