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In response to concerns raised by Governor Kathy Hochul and stakeholders in the employment sector regarding ambiguities in the Trapped at Work Act, the New York Legislature has quickly introduced Chapter Amendments (A.9452/S.8822) to clarify and refine the law’s scope and application. Notably, the amendments – introduced on January 6, 2026 – would limit coverage to “employees” and carve out exceptions for tuition repayment agreements and certain non-educational repayment agreements, such as bonuses and relocation payments not tied to specific job performance, provided the employee is not terminated for reasons other than misconduct or the employer misrepresented the job’s duties and requirements. The amendments would also postpone the Act’s effective date from December 19, 2025 to December 19, 2026.Continue Reading New York Legislature Moves Quickly to Clarify The Trapped at Work Act

On December 19, 2025, Governor Kathy Hochul signed the Trapped at Work Act (the “Act”), introducing sweeping new restrictions on certain employment-related repayment agreements. Effective immediately, the Act prohibits employers from requiring any worker or prospective worker to sign agreements that obligate the individual to repay moneys paid by the employer if the worker leaves before a designated period. These agreements – commonly referred to as “stay-or-pay” agreements – are now deemed unconscionable, contrary to public policy, and unenforceable under New York law.Continue Reading New York’s Trapped at Work Act: Immediate Prohibition of “Stay-or-Pay” Employment Provisions

Beginning January 1, 2026, Illinois employers will face expanded obligations as a result of amendments to the Illinois Workplace Transparency Act (“IWTA” or “Act”) following the enactment of House Bill 3638. The amendments, which Governor JB Pritzker signed into law on August 15, 2025, significantly broaden protections for employees and impose new requirements and restrictions on settlement and termination agreements. These amendments apply to any employment contract entered into, modified, or extended on or after January 1, 2026, with the exception of collective bargaining agreements covered by federal or Illinois public labor statutes. The most impactful amendments to the IWTA are summarized below.Continue Reading Expanded Employer Obligations Under the Illinois Workplace Transparency Act Effective January 1, 2026