New York amends Trapped at Work Act to give employers more time to comply and to clarify its scope

New York Governor Kathy Hochul signed amendments to New York’s Trapped at Work Act into law on February 13, 2026. As explained in the February 2026 New York Employment Law Letter, the Act prohibits certain agreements—known as employee promissory notes or stay-or-pay agreements—that require workers to repay employers for payments if they depart before a specified period of time.

New effective date

The Act that the governor originally signed on December 19, 2025, stated that the statute went into effect “immediately.” The February 13 amendments replaced the word “immediately” with the phrase “this act shall take effect one year after it shall have become law.”

Accordingly, the Act will now go into effect on December 19, 2026.

Coverage limited

The amendments also limit the coverage of the Act to employees and potential employees. The Act will no longer apply to independent contractors or other workers.

Certain repayment agreements allowed

In addition, the amendments will allow agreements that require an employee to reimburse the employer for the cost of tuition, fees, and required educational materials for a transferable credential where such agreements meet specific requirements set forth in the Act.