In a significant development for employers across the Empire State, the New York Legislature passed Assembly Bill A584B/S4070B in the final days of the 2025 session. This bill is known as the “Trapped at Work Act” and would prohibit the use of promissory notes that require workers to repay amounts to employers if they leave their jobs before a specified period. The bill, which has passed both the State Senate and Assembly, awaits delivery to Governor Hochul for action—which can happen at any time before the end of 2025.
The Trapped at Work Act would amend the New York Labor Law by adding a new Article 37, which would prohibit employers from requiring employees to sign an “employment promissory note”—agreements that require employees to repay to their employers a sum of money if they leave their employment within a specified period of time, with particular emphasis on a repayment framed as a reimbursement for training. The bill deems such agreements “unconscionable, against public policy, and unenforceable.”
The bill applies broadly to “workers,” including employees, independent contractors, interns, volunteers, apprentices, and sole proprietors providing services on behalf of an employer. It also applies to any entity associated with the employer that provides training. Importantly, the law does not prohibit all forms of repayment agreements. It expressly permits:
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