New York Trapped at Work Act Takes Effect on Dec. 19

New York’s dramatically named Trapped at Work Act takes effect on December 19, 2026. It applies to new agreements or amendments to existing agreements which are entered into on or after that date.

This law was originally scheduled to take effect on December 19, 2025, but was delayed because of some amendments.

It applies to all private and public sector employers in New York.  All full-time, part-time and seasonal employees are covered by this law.

This law generally prohibits agreements under which an employee is required to pay the employer a sum of money if the employment relationship ends before a specified date. It applies to agreements which are a condition of employment.

There are significant exceptions to this general rule, and the following agreements are enforceable:

• Agreements to repay educational reimbursements for tuition, fees or materials for transferrable credits, with some restrictions.
• Repayment of sign-on bonuses or relocation assistance which are not tied to job performance. An employer may recover payment if the employee voluntarily resigns or is terminated for misconduct.
• Voluntarily purchasing or leasing property from the employer, such as tools or real property.
• Sabbatical leave obligations for educational employees.
• Programs covered by a collective bargaining agreement.

 Employees do not have the right to bring a private action under this law. It is enforced by the Department of Labor, with fines between $1,000 and $5,000. However, if an employee successfully defends an action by an employer to enforce an agreement prohibited by this law, the employee can recover attorney’s fees.

Please let us know if Colligan Law can assist you with this new law or any other legal needs.

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