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NY 'Trapped at Work Act' Sets Dec. 19 Deadline for Repayment Agreements

NewsData.io · United States · Oct 14, 2026

New York's 'Trapped at Work Act,' signed Dec. 19, 2025 and amended Feb. 13, 2026, prohibits employers from requiring 'employment promissory notes' as a condition of employment, with a compliance deadline likely falling on Dec. 19, 2026. The law voids non-compliant stay-or-pay provisions and certain training repayment clauses, while carving out tuition agreements for transferable credentials, relocation bonuses, and CBA-governed programs. Penalties range from $1,000 to $5,000 per violation, and employees who successfully defend against enforcement actions can recover attorney's fees. Staffing firms placing workers in New York should audit offer letters, sign-on agreements, and training repayment provisions now to ensure compliance before the deadline.

employment lawstaffing complianceNew Yorkrepayment agreements

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