What's Happening?
The New York Assembly has introduced bill A9452 to amend the 'Trapped at Work Act' (TAWA), which prohibits employers from requiring employment-related promissory notes. Signed into law by Governor Kathy Hochul in December 2025, TAWA faced criticism for
ambiguities, particularly regarding voluntary tuition assistance programs. The amendment aims to clarify definitions, detail protected payments, and enforceable agreements, and delay the effective date. The bill has passed the Assembly and is now with the Senate, awaiting further approval. The amendment seeks to streamline definitions, introduce 'transferable credential' terms, and expand carve-outs for recoupment agreements.
Why It's Important?
The amendment to TAWA is crucial for both employers and employees in New York, as it seeks to clarify and refine the law's provisions. By addressing ambiguities and expanding carve-outs, the amendment aims to balance the protection of employees with the operational needs of employers. The delay in the effective date provides employers with time to adjust policies and agreements, potentially reducing legal risks and compliance challenges. This legislative development reflects ongoing efforts to ensure fair employment practices while accommodating legitimate business interests.
What's Next?
The amendment is currently with the Senate and, if passed, will require the Governor's signature. The approval process is expected to follow standard procedures, with potential enactment in the coming months. Employers in New York should review existing agreements and prepare for compliance with the amended law. The New York State Department of Labor is unlikely to enforce TAWA until the amendment is finalized, offering a temporary reprieve for affected businesses.
