How NY Stay-Or-Pay Law Shifts Leverage Dynamics
By James Valentino ( March 10, 2026, 5:26 PM EDT) -- The recent passage of New York's Trapped at Work Act reflects the state Legislature's increasing scrutiny of so-called stay-or-pay arrangements.[1] The statute targets what it defines as "employment promissory notes," which are broadly encompassing instruments or contract provisions that obligate an employee to pay the employer a sum of money upon the termination of the employment relationship....
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