Overview
- Governor Kathy Hochul signed amendments on February 13, 2026, pausing the law’s immediate effect and resetting enforcement to a year after the amendment became law, with sources citing February 13, 2027, though some analyses read December 19, 2026.
- The amendment permits tuition repayment for a transferable credential only under strict conditions, including a separate written agreement, disclosure and cap tied to actual cost, proration, no acceleration, and no repayment if termination is for reasons other than misconduct.
- Employers may recoup certain non-performance incentives such as relocation assistance or hiring bonuses when an employee resigns or is terminated for misconduct, with recoupment barred if the employer misrepresented job duties.
- Coverage is narrowed by replacing the broad term “worker” with “employee,” excluding independent contractors, interns, volunteers, apprentices, and sole proprietorships from the statute.
- Employees must file complaints with the New York State Department of Labor, penalties remain $1,000 to $5,000 with factors like employer size and good-faith compliance considered, and advisors urge employers to review and revise agreements before the new effective date.