In New York Law Journal, Attorneys Examine New York State’s Trapped at Work Act

In a New York Law Journal article, employment partner Richard Kidd and associates Luke Cole and Samuel Daly examined New York State’s Trapped at Work Act.

The Act bans employers from requiring workers to sign “employment promissory notes” that force repayment if the employee leaves before a set time, particularly targeting training repayment agreements.

While several exceptions remain—such as specific retention bonuses and repayment agreements for qualifying “transferable credentials” under strict conditions—the law makes prohibited agreements unenforceable, allows fines of $1,000–$5,000 per violation, and permits employees to recover attorneys’ fees if they successfully defend against enforcement of a prohibited agreement. Compared to California’s A.B. 692, New York’s law is narrower but still requires employers to review their repayment and retention policies.