Nancy Gunzenhauser Popper, Drew Ambrose, and Gretel Zumwalt Published in Benefits Digest on New York Guidance Under the Trapped at Work Act

For New York employers, HR leaders, and in-house counsel who manage bonus, relocation, and tuition repayment programs, “stay or pay” restrictions determine which agreements remain enforceable.

A few definitions in state guidance can decide whether a repayment term holds up.

In its November 11 issue, Benefits Digest published a post from Epstein Becker Green’s Workforce Bulletin blog, authored by Nancy Gunzenhauser Popper, Drew Ambrose, and Gretel Zumwalt. The attorneys of Epstein Becker Green counsel employers on employment compliance, leaves of absence, accommodations, workplace investigations, and wage and hour matters.

The publication covers New York State Department of Labor (NYSDOL) guidance on the Trapped at Work Act, which takes effect December 19, 2026. The guidance confirms that the law reaches only new agreements and amended terms in existing ones. It defines “misconduct” to include what an employer’s policy treats as “for cause,” and it clarifies that “terminate” means an employer-initiated separation. Exam and licensing fees tied to a transferable credential may be included in repayment agreements.

The attorneys also addressed performance-contingent bonuses. An employer may require repayment if the employee can choose to defer the payment until the targets are met. That works because the arrangement is “voluntary and no longer a condition of employment,” they wrote.

Get in Touch

To discuss how this guidance may affect your organization’s bonus, relocation, and tuition repayment agreements before December 19, contact Nancy Gunzenhauser Popper at npopper@ebglaw.com, Drew Ambrose at dambrose@ebglaw.com, or Gretel Zumwalt at gzumwalt@ebglaw.com.