New York Amends 'Trapped at Work Act' with Clarifications

Revisions to the law provide more time for employers to review and adjust affected agreements.

Published on Feb. 19, 2026

Got story updates? Submit your updates here. ›

New York has amended the 'Trapped at Work Act' (TAWA), which originally took effect immediately in December 2025. The new amendments clarify key definitions, allow employers to recoup certain expenses under specific conditions, and delay the law's enforcement until February 2027, giving businesses more time to ensure compliance.

Why it matters

The 'Trapped at Work Act' aimed to restrict 'stay or pay' contracts that require employees to reimburse employers for training or other costs if they leave a job before a certain time. The amendments provide more clarity on the law's scope and employers' ability to claw back certain benefits, while also giving companies a full year to review and update their employment agreements to meet the new requirements.

The details

The amendments to TAWA revise definitions, clarify which repayment agreements are permissible, and update enforcement provisions. Employers can now recover money spent on 'transferable credentials' like tuition under specific conditions, as well as certain non-performance-based incentives like relocation assistance or bonuses. The law also explicitly states that current or prospective employees can file complaints with the New York State Department of Labor, which will determine penalties for violations.

  • The original 'Trapped at Work Act' was signed into law on December 19, 2025 and took immediate effect.
  • The amendments to TAWA were passed by the New York State Assembly on January 21, 2026 and the New York State Senate on January 28, 2026.
  • The amended TAWA was signed into law by Governor Kathy Hochul on February 13, 2026.
  • The new effective date for enforcement of the amended TAWA is February 13, 2027, giving employers one year to review and update their agreements.

The players

Kathy Hochul

The Governor of New York who signed the original 'Trapped at Work Act' into law in December 2025 and later signed the amendments in February 2026.

New York State Assembly

The legislative body that unanimously passed the amendments to the 'Trapped at Work Act' on January 21, 2026.

New York State Senate

The legislative body that also passed the amendments to the 'Trapped at Work Act' on January 28, 2026.

New York State Department of Labor (NYSDOL)

The state agency that will be responsible for enforcing the 'Trapped at Work Act' and determining penalties for employer violations.

Got photos? Submit your photos here. ›

What’s next

The New York State Department of Labor will begin enforcing the amended 'Trapped at Work Act' on February 13, 2027, one year after the law was signed.

The takeaway

The amendments to New York's 'Trapped at Work Act' provide more clarity for employers on permissible repayment agreements and give businesses a full year to review and update their employment contracts to ensure compliance with the new law.