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Vorys

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Payback Policies Pivot: New York’s Trapped at Work Act and Pending Amendments

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.