{"id":12160,"date":"2026-02-17T09:41:18","date_gmt":"2026-02-17T14:41:18","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=12160"},"modified":"2026-02-19T09:45:23","modified_gmt":"2026-02-19T14:45:23","slug":"new-york-amends-delays-stay-or-pay-law","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/employment-agreements\/new-york-amends-delays-stay-or-pay-law\/","title":{"rendered":"New York amends, delays stay-or-pay law"},"content":{"rendered":"\n
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by Robert S. Teachout, SHRM-SCP,<\/strong> Brightmine Legal Editor<\/p>\n<\/div>\n\n\n\n

Less than 60 days after it took effect, New York’s law restricting stay-or-pay contract provisions is amended and on hold for a year.<\/p>\n\n\n\n

The Trapped at Work Act prohibited an employer from requiring a worker, as a condition of employment, to sign an agreement requiring them to repay certain training costs if the worker leaves employment before passage of a specified period. The law went into effect December 19, 2025.<\/p>\n\n\n\n

Employers use training and retention repayment provisions (TRAPs) – often called stay-or-pay provisions – in an attempt to protect their investment in employee training by ensuring that employees either stay with the organization for a certain period or reimburse the costs if they leave early.<\/p>\n\n\n\n

When Governor Kathy Hochul signed the Act into law, she noted several ambiguities – such as whether it applied to voluntary tuition assistance programs – and agreed with the legislature to address the issues in amendments this legislative session.<\/p>\n\n\n\n

SB 9452<\/a> amends the Act by:<\/p>\n\n\n\n