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flag New York's new law bans "stay-or-pay" clauses, protecting workers from repaying training costs if they leave.

flag New York State’s Trapped at Work Act, effective December 19, 2025, bans employers from requiring workers to repay training or other costs if they leave before a set time, making such "stay-or-pay" agreements unenforceable. flag The law applies to employees, contractors, interns, and volunteers, excluding only goods vendors. flag It permits exceptions for certain advances, property leases, sabbaticals, and union agreements. flag Violations can result in civil penalties of $1,000 to $5,000 per offense, and workers may recover attorney fees if they challenge prohibited clauses. flag Governor Hochul acknowledged ambiguities and signaled possible future clarifications.

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