New York Trapped at Work Act: stay-or-pay promissory notes banned
- Jurisdiction
- New York
- Topic
- Non-compete
- 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.govhttps://www.nysenate.gov/legislation/bills/2025/A9452
- nyassembly.govhttps://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A09452&term=2025&Summary=Y&Text=Y
