Non-compete Verified

New York Trapped at Work Act: stay-or-pay promissory notes banned

Jurisdiction
New York
Effective date
2026-12-19
Who it covers
All employers
Status
Verified against an official source

The law, summarized

  • New York's Trapped at Work Act, as amended by A9452, bars employers from requiring employment promissory notes; such notes are void.
  • Limited arrangements remain allowed, including certain transferable-credential tuition repayment, property sales or leases, some bonuses, sabbatical terms and union programs.
  • Violations may be fined $1,000 to $5,000 each.
  • The law takes effect one year after the original act became law, read as Dec 19, 2026 (Feb 13, 2027 is a possible alternate reading).
StateHR Take · AI-generated analysis, not legal advice

Who should act: All employers with workers in New York. Review offer letters, noncompete, repayment and training agreements against this change by 2026-12-19, and plan any required employee notices. Confirm the details in the official source before acting.

Generated 2026-10-15T18:41-05:00

Official sources

  • www.nysenate.gov
    https://www.nysenate.gov/legislation/bills/2025/A9452
  • nyassembly.gov
    https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A09452&term=2025&Summary=Y&Text=Y