On December 19, 2025, New York Governor Hochul signed S. 4070, the “Trapped at Work Act." The law took effect immediately and sharply restricts “stay-or-pay” arrangements that require workers to repay money if they leave before a specified period. In response to concerns, the New York Legislature introduced amendments on January 6, 2026, to clarify the law.
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Payback Policies Pivot: New York’s Trapped at Work Act and Pending Amendments

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