New York State and City legislative update: Changes for all employers in 2025 and 2026

The New York State Assembly and Senate passed numerous pieces of legislation during the concluded legislative session in late December. This article reviews three enactments that Governor Kathy Hochul signed into law and one bill she vetoed. Here’s what employers with operations and employees in New York State and New York City need to know.

Trapped at Work Act

On December 19, 2025, Governor Hochul signed S4070, the “Trapped at Work Act,” adding new article 37 to the New York Labor Law, codified as Labor Law §§1050-1055. The law became effective “immediately” upon signing.

Employers are prohibited from requiring “employment promissory notes” as a condition of employment. An “employment promissory note” is defined as any instrument, agreement, or contract provision that requires a worker to pay the employer a sum of money if the employee leaves employment before the passage of a stated period of time. It expressly includes any such document that states payment of monies constitutes reimbursement for training provided to the worker by the employer or by a third party.

Section 1052(2) of the new law contains important exceptions to the prohibition. The following agreements are permissible: