On December 19, 2025, Governor Kathy Hochul signed into law the Trapped At Work Act, which outlaws stay or pay clauses that require workers to pay back training expenses to their employers if they leave their jobs before a specific time period. These clauses are harmful, as they restrict workers’ ability to leave hostile work environments, or to leave for better employment opportunities. This law went into effect immediately, and applies to all workers, including employees, independent contractors, volunteers, and apprentices.
New York’s passage of this Act is an important step forward in combatting restrictive covenants. Indeed, New York now joins California, Colorado, Indiana, and Pennsylvania in regulating or outright banning stay or pay clauses.