Overview
- Governor Kathy Hochul signed the Trapped at Work Act on December 19, 2025, immediately banning employment promissory notes as a condition of employment for agreements signed on or after that date.
- Chapter amendments A.9452/S.8822 introduced on January 6, 2026 would move the effective date to December 19, 2026, but the statute remains operative today.
- The proposals would limit coverage from broadly defined “workers” to only “employees,” narrowing who is protected under the law.
- Draft carveouts would allow tuition‑repayment for transferable credentials and certain bonus or relocation payback agreements if strict conditions are met, including separate contracts, advance disclosure, cost caps, proration, and no repayment after termination except for misconduct.
- The New York Department of Labor may assess $1,000–$5,000 per‑violation penalties and would consider employer size, good‑faith compliance, and violation severity; employers are auditing agreements and pausing collections as New York’s approach draws comparisons to California’s broader law with a private right of action.