New York’s “Trapped at Work Act” Bans on Stay-or-Pay Agreements

New York’s “Trapped at Work Act” Bans on Stay-or-Pay Agreements

New York has taken a decisive step toward increasing worker mobility and limiting restrictive employment practices with the enactment of the Trapped at Work Act. Signed by Governor Kathy Hochul on December 19, 2025, this legislation effectively curtails the use of stay-or-pay agreements, which are contractual provisions that require workers to repay their employers if they leave their jobs before a specified period. These agreements, often framed as reimbursement for training or onboarding costs, have

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