Compliance Stuff

New York employers should soon have more clarity on the Empire State’s new law targeting “stay or pay” agreements – and more time to comply. The state legislature recently passed amendments designed to address ambiguities and potential overreach in the original statute enacted in December 2025. The Trapped at Work Act, signed by Governor Hochul late last year, was intended to protect worker mobility by prohibiting employment agreements that require employees to repay certain training costs if they leave the job before a specified period. These are known as “stay or pay” agreements . However, the law’s broad language raised concerns about its impact on common employment practices, such as repayment of tuition reimbursement, signing bonuses, and relocation packages. The new updates will better define the law’s application and carve out exceptions for these and other standard business arrangements. Here’s what you need to know about the act and the pending changes as we wait for the Gover...

Businesses with New York employees are breathing a sigh of relief now that the state has finally addressed a hot button (and expensive) issue that has plagued them for nearly six years. A state court first ruled in 2019 that manual workers had the right to sue for frequency of pay claims – and the workers could essentially receive damages equal to half their wages for up to six years . In response to pleas from employers, and after a failed attempt last year, Governor Hochul successfully pushed an amendment through that addresses concerns over the exorbitant damages. The amendments took effect on May 9 and apply to both pending and future cases . Here’s what employers need to know. How Did We Get Here? Weekly Pay for Manual Workers:   New York’s  Frequency of Payments Law  requires employers to pay “manual workers” weekly, within seven days after the end of the week in which wages are earned . The New York Labor Law defines a manual worker as a “mechanic, workingman, or l...