New York State lawmakers recently passed a bill to prohibit employers from requiring workers to repay certain costs if they leave their jobs. The bill has not been signed or vetoed by Governor Kathy Hochul yet.
Quick Hits
- On June 12, 2025, the New York Legislature passed the “Trapped at Work Act” to nullify promissory notes that require employees to repay employers for certain costs if they leave their jobs within a set time period.
- The bill has not been sent to Governor Kathy Hochul yet.
If enacted, Assembly Bill A584C, known as the “Trapped at Work Act,” would generally prohibit promissory notes, which, as a condition of employment, require the repayment of the cost of training related to jobs.
“The execution of an employment promissory note as a condition of employment is unconscionable, against public policy, and unenforceable, and any such note shall be null and void,” the bill states. However, the bill permits promissory notes for sums advanced to workers for reasons other than training expenses, repayment for any property an employer has sold or leased to a worker, requirements for education professionals to comply with terms or conditions for sabbatical leaves, or terms agreed to by an employer and a union.
As the bill allows promissory notes for sums advanced to workers that are not used for training, promissory notes or other agreements to repay sign-on or similar bonuses would be permissible. A significant potential issue not addressed in the legislation is...
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