Assembly Bill A584C

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    584
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. STECK, SANTABARBARA, PAULIN, LEVENBERG, REYES --
   read once and referred to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to enacting the  "trapped  at
   work act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as the "trapped at
 work act".
   § 2. The labor law is amended by adding a new article 36  to  read  as
 follows:
                                 ARTICLE 36
                            TRAPPED AT WORK ACT
 SECTION 1050. STATEMENT OF PUBLIC POLICY.
         1051. DEFINITIONS.
         1052. SCOPE.
         1053. PROHIBITING  THE  USE  OF  EMPLOYMENT PROMISSORY NOTES AND
                 OTHER SIMILAR PROVISIONS.
         1054. ENFORCEMENT.
         1055. RULES.
         1056. SAVINGS CLAUSE.
   § 1050. STATEMENT OF PUBLIC POLICY. WORKERS' ABILITY TO FREELY  CHANGE
 JOBS  IS  CRITICAL  TO  THEIR  ECONOMIC LIBERTY AS WELL AS TO CREATING A
 THRIVING AND INNOVATIVE ECONOMY IN THE STATE OF NEW YORK.  ADDITIONALLY,
 A  TENET  OF  WORKER PROTECTIONS AND EMPOWERMENT IS THAT THE COST OF ANY
 TRAINING REQUIRED BY AN EMPLOYER TO PERFORM A JOB SHOULD BE BORNE BY THE
 EMPLOYER, WHO ULTIMATELY STANDS TO  FINANCIALLY  BENEFIT  FROM  A  WELL-
 TRAINED WORKFORCE. EMPLOYMENT PROVISIONS THAT HAVE THE EFFECT OF INDEBT-
 ING  WORKERS  TO  THEIR FORMER EMPLOYERS UPON SEPARATION FOR THE COST OF
 TRAINING HAVE THE EFFECTS OF REDUCING THOSE WORKERS' PROFESSIONAL MOBIL-
 ITY, CREATING OBSTACLES TOWARD  FINANCIAL  SECURITY,  AND  CHILLING  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01084-01-5
 A. 584                              2
 
 STATE  ECONOMY.  IT  IS IN THE INTEREST OF INDIVIDUAL WORKERS AND OF THE
 STATE TO PROTECT WORKERS FROM THESE EMPLOYMENT-BASED DEBTS AND TO  ALIGN
 THE  COSTS OF OPERATING A BUSINESS WITH ITS FINANCIAL BENEFITS BY ENSUR-
 ING  EMPLOYERS  MAINTAIN  EXPENSES  FOR  TRAINING THEY REQUIRE FOR THEIR
 WORKERS.
   § 1051. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1. "EMPLOYER" MEANS AN INDIVIDUAL,  PARTNERSHIP,  ASSOCIATION,  CORPO-
 RATION,  LIMITED  LIABILITY  COMPANY,  TRUST,  GOVERNMENT  OR GOVERNMENT
 SUBDIVISION, OR ANY ORGANIZED GROUP THAT HIRES OR CONTRACTS WITH A WORK-
 ER TO WORK FOR THE EMPLOYER. FOR THE PURPOSES OF THIS ARTICLE, THIS TERM
 SHALL ALSO INCLUDE ANY SUBSIDIARY OF AN  EMPLOYER  AND  ANY  INDIVIDUAL,
 PARTNERSHIP, ASSOCIATION, CORPORATION, LIMITED LIABILITY COMPANY, TRUST,
 GOVERNMENT  OR GOVERNMENT SUBDIVISION, OR ANY ORGANIZED GROUP ASSOCIATED
 WITH AN EMPLOYER THAT PROVIDES TRAINING TO WORKERS.
   2. "WORKER" MEANS AN INDIVIDUAL WHO IS PERMITTED TO  WORK  FOR  OR  ON
 BEHALF OF AN EMPLOYER. THE TERM "WORKER" INCLUDES AN EMPLOYEE, INDEPEND-
 ENT  CONTRACTOR,  EXTERN, INTERN, VOLUNTEER, APPRENTICE, SOLE PROPRIETOR
 WHO PROVIDES A SERVICE OR SERVICES TO AN EMPLOYER  OR  TO  A  CLIENT  OR
 CUSTOMER  OF  AN  EMPLOYER ON BEHALF OF SUCH EMPLOYER, AND AN INDIVIDUAL
 WHO PROVIDES SERVICE THROUGH A BUSINESS OR NONPROFIT ENTITY  OR  ASSOCI-
 ATION.  "WORKER"  DOES NOT INCLUDE AN INDIVIDUAL, EVEN IF THE INDIVIDUAL
 PERFORMS INCIDENTAL SERVICE FOR THE EMPLOYER,  WHOSE  SOLE  RELATIONSHIP
 WITH THE EMPLOYER IS AS A VENDOR OF GOODS.
   3.  "EMPLOYMENT  PROMISSORY  NOTE" MEANS ANY INSTRUMENT, AGREEMENT, OR
 CONTRACT PROVISION THAT REQUIRES A WORKER TO PAY THE  EMPLOYER,  OR  THE
 EMPLOYER'S  AGENT  OR ASSIGNEE, A SUM OF MONEY IF THE WORKER LEAVES SUCH
 EMPLOYMENT BEFORE THE PASSAGE OF A STATED PERIOD  OF  TIME.  "EMPLOYMENT
 PROMISSORY  NOTE"  INCLUDES  ANY SUCH INSTRUMENT, AGREEMENT, OR CONTRACT
 PROVISION WHICH STATES SUCH PAYMENT OF MONEYS CONSTITUTES  REIMBURSEMENT
 FOR TRAINING PROVIDED TO THE WORKER BY THE EMPLOYER OR BY A THIRD PARTY.
   §  1052.  SCOPE.  1.  THIS  ARTICLE  SUPERSEDES COMMON LAW ONLY TO THE
 EXTENT THAT IT APPLIES TO AN EMPLOYMENT PROMISSORY  NOTE  BUT  OTHERWISE
 DOES  NOT AFFECT PRINCIPLES OF LAW AND EQUITY CONSISTENT WITH THIS ARTI-
 CLE.
   2. THE RIGHTS AND REMEDIES PROVIDED PURSUANT TO THIS ARTICLE SHALL  BE
 IN  ADDITION  TO, AND SHALL NOT SUPERSEDE, ANY OTHER RIGHTS AND REMEDIES
 PROVIDED BY STATUTE OR COMMON LAW.
   § 1053. PROHIBITING THE USE OF EMPLOYMENT PROMISSORY NOTES  AND  OTHER
 SIMILAR PROVISIONS.  1. BEGINNING ON THE EFFECTIVE DATE OF THIS ARTICLE,
 NO  EMPLOYER  MAY  REQUIRE,  AS A CONDITION OF EMPLOYMENT, ANY WORKER OR
 PROSPECTIVE  WORKER  TO  EXECUTE  AN  EMPLOYMENT  PROMISSORY  NOTE.  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 VOID. IF ANY SUCH NOTE IS PART OF A LARGER AGREEMENT,
 THE  INVALIDITY  OF  SUCH  NOTE SHALL NOT AFFECT THE OTHER PROVISIONS OF
 SUCH AGREEMENT.
   2. NOTHING IN THIS SECTION SHALL PROHIBIT OR RENDER VOID OR UNENFORCE-
 ABLE ANY AGREEMENT BETWEEN A WORKER AND AN EMPLOYER THAT:
   (A) REQUIRES THE WORKER TO REPAY TO THE EMPLOYER ANY SUMS ADVANCED  TO
 SUCH  WORKER  BY  THE  EMPLOYER,  UNLESS  SUCH SUMS WERE USED TO PAY FOR
 TRAINING RELATED TO THE WORKER'S EMPLOYMENT WITH THE EMPLOYER;
   (B) REQUIRES THE WORKER TO PAY THE EMPLOYER FOR ANY  PROPERTY  IT  HAS
 SOLD OR LEASED TO SUCH WORKER;
   (C)  REQUIRES EDUCATIONAL PERSONNEL TO COMPLY WITH ANY TERMS OR CONDI-
 TIONS OF SABBATICAL LEAVES GRANTED BY THEIR EMPLOYERS; OR
 A. 584                              3
 
   (D) IS ENTERED INTO AS PART OF A PROGRAM AGREED TO BY THE EMPLOYER AND
 ITS WORKERS' COLLECTIVE BARGAINING REPRESENTATIVE.
   § 1054. ENFORCEMENT. 1. ANY EMPLOYER FOUND TO HAVE VIOLATED THIS ARTI-
 CLE  SHALL  BE  FINED  BY  THE  COMMISSIONER  NOT LESS THAN ONE THOUSAND
 DOLLARS AND NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH VIOLATION. EACH
 WORKER OR PROSPECTIVE WORKER WHOM AN EMPLOYER  REQUIRED  TO  EXECUTE  AN
 EMPLOYMENT  PROMISSORY NOTE OR AGAINST WHOM AN EMPLOYER SEEKS TO ENFORCE
 SUCH A NOTE SHALL CONSTITUTE A SEPARATE VIOLATION OF THIS ARTICLE.
   2. ANY WORKER OR PROSPECTIVE WORKER  FOR  WHOM  AN  EMPLOYER  REQUIRES
 EXECUTION  OF AN EMPLOYMENT PROMISSORY NOTE AS A CONDITION OF EMPLOYMENT
 OR AGAINST WHOM AN EMPLOYER SEEKS TO ENFORCE SUCH A NOTE  MAY  BRING  AN
 ACTION  AGAINST SUCH EMPLOYER TO RECOVER ACTUAL DAMAGES OR FIVE THOUSAND
 DOLLARS, WHICHEVER IS GREATER, AND INJUNCTIVE RELIEF. IN THE EVENT OF  A
 SUCCESSFUL  ACTION, THE COURT SHALL AWARD ANY PLAINTIFF REASONABLE COSTS
 AND ATTORNEY FEES.
   § 1055. RULES. THE COMMISSIONER MAY PROMULGATE RULES  AND  REGULATIONS
 NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   § 1056. SAVINGS CLAUSE. IF ANY PORTION OF THIS ARTICLE OR THE APPLICA-
 TION  THEREOF TO ANY PERSON, OCCUPATION OR CIRCUMSTANCE IS HELD INVALID,
 THE REMAINDER OF THE ARTICLE AND THE APPLICATION OF  SUCH  PROVISION  TO
 OTHER  PERSONS,  EMPLOYEES,  OCCUPATIONS,  OR CIRCUMSTANCES SHALL NOT BE
 AFFECTED THEREBY.
   § 3. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  584--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by M. of A. STECK, SANTABARBARA, PAULIN, LEVENBERG, REYES --
   read once  and  referred  to  the  Committee  on  Labor  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN  ACT  to amend the labor law, in relation to enacting the "trapped at
   work act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "trapped at work act".
   § 2. The labor law is amended by adding a new article 37  to  read  as
 follows:
                                 ARTICLE 37
                            TRAPPED AT WORK ACT
 SECTION 1050. STATEMENT OF PUBLIC POLICY.
         1051. DEFINITIONS.
         1052. SCOPE.
         1053. PROHIBITING  THE  USE  OF  EMPLOYMENT PROMISSORY NOTES AND
                 OTHER SIMILAR PROVISIONS.
         1054. ENFORCEMENT.
         1055. RULES.
         1056. SAVINGS CLAUSE.
   § 1050. STATEMENT OF PUBLIC POLICY. WORKERS' ABILITY TO FREELY  CHANGE
 JOBS  IS  CRITICAL  TO  THEIR  ECONOMIC LIBERTY AS WELL AS TO CREATING A
 THRIVING AND INNOVATIVE ECONOMY IN THE STATE OF NEW YORK.  ADDITIONALLY,
 A  TENET  OF  WORKER PROTECTIONS AND EMPOWERMENT IS THAT THE COST OF ANY
 TRAINING REQUIRED BY AN EMPLOYER TO PERFORM A JOB SHOULD BE BORNE BY THE
 EMPLOYER, WHO ULTIMATELY STANDS TO  FINANCIALLY  BENEFIT  FROM  A  WELL-
 TRAINED WORKFORCE. EMPLOYMENT PROVISIONS THAT HAVE THE EFFECT OF INDEBT-
 ING  WORKERS  TO  THEIR FORMER EMPLOYERS UPON SEPARATION FOR THE COST OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01084-03-5
 A. 584--A                           2
 
 TRAINING HAVE THE EFFECTS OF REDUCING THOSE WORKERS' PROFESSIONAL MOBIL-
 ITY, CREATING OBSTACLES TOWARD  FINANCIAL  SECURITY,  AND  CHILLING  THE
 STATE  ECONOMY.  IT  IS IN THE INTEREST OF INDIVIDUAL WORKERS AND OF THE
 STATE  TO PROTECT WORKERS FROM THESE EMPLOYMENT-BASED DEBTS AND TO ALIGN
 THE COSTS OF OPERATING A BUSINESS WITH ITS FINANCIAL BENEFITS BY  ENSUR-
 ING  EMPLOYERS  MAINTAIN  EXPENSES  FOR  TRAINING THEY REQUIRE FOR THEIR
 WORKERS.
   § 1051. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1. "EMPLOYER" MEANS AN INDIVIDUAL,  PARTNERSHIP,  ASSOCIATION,  CORPO-
 RATION,  LIMITED  LIABILITY  COMPANY,  TRUST,  GOVERNMENT  OR GOVERNMENT
 SUBDIVISION, OR ANY ORGANIZED GROUP THAT HIRES OR CONTRACTS WITH A WORK-
 ER TO WORK FOR THE EMPLOYER. FOR THE PURPOSES OF THIS ARTICLE, THIS TERM
 SHALL ALSO INCLUDE ANY SUBSIDIARY OF AN  EMPLOYER  AND  ANY  INDIVIDUAL,
 PARTNERSHIP, ASSOCIATION, CORPORATION, LIMITED LIABILITY COMPANY, TRUST,
 GOVERNMENT  OR GOVERNMENT SUBDIVISION, OR ANY ORGANIZED GROUP ASSOCIATED
 WITH AN EMPLOYER THAT PROVIDES TRAINING TO WORKERS.
   2. "WORKER" MEANS AN INDIVIDUAL WHO IS PERMITTED TO  WORK  FOR  OR  ON
 BEHALF OF AN EMPLOYER. THE TERM "WORKER" INCLUDES AN EMPLOYEE, INDEPEND-
 ENT  CONTRACTOR,  EXTERN, INTERN, VOLUNTEER, APPRENTICE, SOLE PROPRIETOR
 WHO PROVIDES A SERVICE OR SERVICES TO AN EMPLOYER  OR  TO  A  CLIENT  OR
 CUSTOMER  OF  AN  EMPLOYER ON BEHALF OF SUCH EMPLOYER, AND AN INDIVIDUAL
 WHO PROVIDES SERVICE THROUGH A BUSINESS OR NONPROFIT ENTITY  OR  ASSOCI-
 ATION.  "WORKER"  DOES NOT INCLUDE AN INDIVIDUAL, EVEN IF THE INDIVIDUAL
 PERFORMS INCIDENTAL SERVICE FOR THE EMPLOYER,  WHOSE  SOLE  RELATIONSHIP
 WITH THE EMPLOYER IS AS A VENDOR OF GOODS.
   3.  "EMPLOYMENT  PROMISSORY  NOTE" MEANS ANY INSTRUMENT, AGREEMENT, OR
 CONTRACT PROVISION THAT REQUIRES A WORKER TO PAY THE  EMPLOYER,  OR  THE
 EMPLOYER'S  AGENT  OR ASSIGNEE, A SUM OF MONEY IF THE WORKER LEAVES SUCH
 EMPLOYMENT BEFORE THE PASSAGE OF A STATED PERIOD  OF  TIME.  "EMPLOYMENT
 PROMISSORY  NOTE"  INCLUDES  ANY SUCH INSTRUMENT, AGREEMENT, OR CONTRACT
 PROVISION WHICH STATES SUCH PAYMENT OF MONEYS CONSTITUTES  REIMBURSEMENT
 FOR TRAINING PROVIDED TO THE WORKER BY THE EMPLOYER OR BY A THIRD PARTY.
   §  1052.  SCOPE.  1.  THIS  ARTICLE  SUPERSEDES COMMON LAW ONLY TO THE
 EXTENT THAT IT APPLIES TO AN EMPLOYMENT PROMISSORY  NOTE  BUT  OTHERWISE
 DOES  NOT AFFECT PRINCIPLES OF LAW AND EQUITY CONSISTENT WITH THIS ARTI-
 CLE.
   2. THE RIGHTS AND REMEDIES PROVIDED PURSUANT TO THIS ARTICLE SHALL  BE
 IN  ADDITION  TO, AND SHALL NOT SUPERSEDE, ANY OTHER RIGHTS AND REMEDIES
 PROVIDED BY STATUTE OR COMMON LAW.
   § 1053. PROHIBITING THE USE OF EMPLOYMENT PROMISSORY NOTES  AND  OTHER
 SIMILAR PROVISIONS.  1. BEGINNING ON THE EFFECTIVE DATE OF THIS ARTICLE,
 NO  EMPLOYER  MAY  REQUIRE,  AS A CONDITION OF EMPLOYMENT, ANY WORKER OR
 PROSPECTIVE  WORKER  TO  EXECUTE  AN  EMPLOYMENT  PROMISSORY  NOTE.  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 VOID. IF ANY SUCH NOTE IS PART OF A LARGER AGREEMENT,
 THE  INVALIDITY  OF  SUCH  NOTE SHALL NOT AFFECT THE OTHER PROVISIONS OF
 SUCH AGREEMENT.
   2. NOTHING IN THIS SECTION SHALL PROHIBIT OR RENDER VOID OR UNENFORCE-
 ABLE ANY AGREEMENT BETWEEN A WORKER AND AN EMPLOYER THAT:
   (A) REQUIRES THE WORKER TO REPAY TO THE EMPLOYER ANY SUMS ADVANCED  TO
 SUCH  WORKER  BY  THE  EMPLOYER,  UNLESS  SUCH SUMS WERE USED TO PAY FOR
 TRAINING RELATED TO THE WORKER'S EMPLOYMENT WITH THE EMPLOYER;
   (B) REQUIRES THE WORKER TO PAY THE EMPLOYER FOR ANY  PROPERTY  IT  HAS
 SOLD OR LEASED TO SUCH WORKER;
 A. 584--A                           3
 
   (C)  REQUIRES EDUCATIONAL PERSONNEL TO COMPLY WITH ANY TERMS OR CONDI-
 TIONS OF SABBATICAL LEAVES GRANTED BY THEIR EMPLOYERS; OR
   (D) IS ENTERED INTO AS PART OF A PROGRAM AGREED TO BY THE EMPLOYER AND
 ITS WORKERS' COLLECTIVE BARGAINING REPRESENTATIVE.
   § 1054. ENFORCEMENT. 1. ANY EMPLOYER FOUND TO HAVE VIOLATED THIS ARTI-
 CLE  SHALL  BE  FINED  BY  THE  COMMISSIONER  NOT LESS THAN ONE THOUSAND
 DOLLARS AND NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH VIOLATION. EACH
 WORKER OR PROSPECTIVE WORKER WHOM AN EMPLOYER  REQUIRED  TO  EXECUTE  AN
 EMPLOYMENT  PROMISSORY NOTE OR AGAINST WHOM AN EMPLOYER SEEKS TO ENFORCE
 SUCH A NOTE SHALL CONSTITUTE A SEPARATE VIOLATION OF THIS ARTICLE.
   2. ANY WORKER OR PROSPECTIVE WORKER  FOR  WHOM  AN  EMPLOYER  REQUIRES
 EXECUTION  OF AN EMPLOYMENT PROMISSORY NOTE AS A CONDITION OF EMPLOYMENT
 OR AGAINST WHOM AN EMPLOYER SEEKS TO ENFORCE SUCH A NOTE  MAY  BRING  AN
 ACTION  AGAINST SUCH EMPLOYER TO RECOVER ACTUAL DAMAGES OR FIVE THOUSAND
 DOLLARS, WHICHEVER IS GREATER, AND INJUNCTIVE RELIEF. IN THE EVENT OF  A
 SUCCESSFUL  ACTION, THE COURT SHALL AWARD ANY PLAINTIFF REASONABLE COSTS
 AND ATTORNEY FEES.
   § 1055. RULES. THE COMMISSIONER MAY PROMULGATE RULES  AND  REGULATIONS
 NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   § 1056. SAVINGS CLAUSE. IF ANY PORTION OF THIS ARTICLE OR THE APPLICA-
 TION  THEREOF TO ANY PERSON, OCCUPATION OR CIRCUMSTANCE IS HELD INVALID,
 THE REMAINDER OF THE ARTICLE AND THE APPLICATION OF  SUCH  PROVISION  TO
 OTHER  PERSONS,  EMPLOYEES,  OCCUPATIONS,  OR CIRCUMSTANCES SHALL NOT BE
 AFFECTED THEREBY.
   § 3. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  584--B
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  M.  of A. STECK, SANTABARBARA, PAULIN, LEVENBERG, REYES,
   SHIMSKY -- read once and referred to the Committee on Labor -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted  to  said  committee -- again reported from said committee with
   amendments, ordered reprinted  as  amended  and  recommitted  to  said
   committee
 
 AN  ACT  to amend the labor law, in relation to enacting the "trapped at
   work act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "trapped at work act".
   § 2. The labor law is amended by adding a new article 37  to  read  as
 follows:
                                 ARTICLE 37
                            TRAPPED AT WORK ACT
 SECTION 1050. DEFINITIONS.
         1051. SCOPE.
         1052. PROHIBITING  THE  USE  OF  EMPLOYMENT PROMISSORY NOTES AND
                 OTHER SIMILAR PROVISIONS.
         1053. ENFORCEMENT.
         1054. RULES.
         1055. SAVINGS CLAUSE.
   § 1050. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1. "EMPLOYER" MEANS AN INDIVIDUAL,  PARTNERSHIP,  ASSOCIATION,  CORPO-
 RATION,  LIMITED  LIABILITY  COMPANY,  TRUST,  GOVERNMENT  OR GOVERNMENT
 SUBDIVISION, OR ANY ORGANIZED GROUP THAT HIRES OR CONTRACTS WITH A WORK-
 ER TO WORK FOR THE EMPLOYER. FOR THE PURPOSES OF THIS ARTICLE, THIS TERM
 SHALL ALSO INCLUDE ANY SUBSIDIARY OF AN  EMPLOYER  AND  ANY  INDIVIDUAL,
 PARTNERSHIP, ASSOCIATION, CORPORATION, LIMITED LIABILITY COMPANY, TRUST,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01084-06-5
 A. 584--B                           2
 
 GOVERNMENT  OR GOVERNMENT SUBDIVISION, OR ANY ORGANIZED GROUP ASSOCIATED
 WITH AN EMPLOYER THAT PROVIDES TRAINING TO WORKERS.
   2.  "WORKER"  MEANS  AN  INDIVIDUAL WHO IS PERMITTED TO WORK FOR OR ON
 BEHALF OF AN EMPLOYER. THE TERM "WORKER" INCLUDES AN EMPLOYEE, INDEPEND-
 ENT CONTRACTOR, EXTERN, INTERN, VOLUNTEER, APPRENTICE,  SOLE  PROPRIETOR
 WHO  PROVIDES  A  SERVICE  OR  SERVICES TO AN EMPLOYER OR TO A CLIENT OR
 CUSTOMER OF AN EMPLOYER ON BEHALF OF SUCH EMPLOYER,  AND  AN  INDIVIDUAL
 WHO  PROVIDES  SERVICE THROUGH A BUSINESS OR NONPROFIT ENTITY OR ASSOCI-
 ATION. "WORKER" DOES NOT INCLUDE AN INDIVIDUAL, EVEN IF  THE  INDIVIDUAL
 PERFORMS  INCIDENTAL  SERVICE  FOR THE EMPLOYER, WHOSE SOLE RELATIONSHIP
 WITH THE EMPLOYER IS AS A VENDOR OF GOODS.
   3. "EMPLOYMENT PROMISSORY NOTE" MEANS ANY  INSTRUMENT,  AGREEMENT,  OR
 CONTRACT  PROVISION  THAT  REQUIRES A WORKER TO PAY THE EMPLOYER, OR THE
 EMPLOYER'S AGENT OR ASSIGNEE, A SUM OF MONEY IF THE WORKER  LEAVES  SUCH
 EMPLOYMENT  BEFORE  THE  PASSAGE OF A STATED PERIOD OF TIME. "EMPLOYMENT
 PROMISSORY NOTE" INCLUDES ANY SUCH INSTRUMENT,  AGREEMENT,  OR  CONTRACT
 PROVISION  WHICH STATES SUCH PAYMENT OF MONEYS CONSTITUTES REIMBURSEMENT
 FOR TRAINING PROVIDED TO THE WORKER BY THE EMPLOYER OR BY A THIRD PARTY.
   § 1051. SCOPE. THE RIGHTS AND REMEDIES PROVIDED PURSUANT TO THIS ARTI-
 CLE SHALL NOT SUPERSEDE ANY OTHER RIGHTS AND REMEDIES PROVIDED BY  STAT-
 UTE OR COMMON LAW.
   §  1052.  PROHIBITING THE USE OF EMPLOYMENT PROMISSORY NOTES AND OTHER
 SIMILAR PROVISIONS.  1. BEGINNING ON THE EFFECTIVE DATE OF THIS ARTICLE,
 NO EMPLOYER MAY REQUIRE, AS A CONDITION OF  EMPLOYMENT,  ANY  WORKER  OR
 PROSPECTIVE  WORKER  TO  EXECUTE  AN  EMPLOYMENT  PROMISSORY  NOTE.  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 VOID. IF ANY SUCH NOTE IS PART OF A LARGER AGREEMENT,
 THE INVALIDITY OF SUCH NOTE SHALL NOT AFFECT  THE  OTHER  PROVISIONS  OF
 SUCH AGREEMENT.
   2. NOTHING IN THIS SECTION SHALL PROHIBIT OR RENDER VOID OR UNENFORCE-
 ABLE ANY AGREEMENT BETWEEN A WORKER AND AN EMPLOYER THAT:
   (A)  REQUIRES THE WORKER TO REPAY TO THE EMPLOYER ANY SUMS ADVANCED TO
 SUCH WORKER BY THE EMPLOYER, UNLESS SUCH  SUMS  WERE  USED  TO  PAY  FOR
 TRAINING RELATED TO THE WORKER'S EMPLOYMENT WITH THE EMPLOYER;
   (B)  REQUIRES  THE  WORKER TO PAY THE EMPLOYER FOR ANY PROPERTY IT HAS
 SOLD OR LEASED TO SUCH WORKER;
   (C) REQUIRES EDUCATIONAL PERSONNEL TO COMPLY WITH ANY TERMS OR  CONDI-
 TIONS OF SABBATICAL LEAVES GRANTED BY THEIR EMPLOYERS; OR
   (D) IS ENTERED INTO AS PART OF A PROGRAM AGREED TO BY THE EMPLOYER AND
 ITS WORKERS' COLLECTIVE BARGAINING REPRESENTATIVE.
   § 1053. ENFORCEMENT. 1. ANY EMPLOYER FOUND TO HAVE VIOLATED THIS ARTI-
 CLE  SHALL  BE  FINED  BY  THE  COMMISSIONER  NOT LESS THAN ONE THOUSAND
 DOLLARS AND NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH VIOLATION. EACH
 WORKER OR PROSPECTIVE WORKER WHOM AN EMPLOYER  REQUIRED  TO  EXECUTE  AN
 EMPLOYMENT  PROMISSORY NOTE OR AGAINST WHOM AN EMPLOYER SEEKS TO ENFORCE
 SUCH A NOTE SHALL CONSTITUTE A SEPARATE VIOLATION OF THIS ARTICLE.
   2. ANY WORKER OR PROSPECTIVE WORKER  FOR  WHOM  AN  EMPLOYER  REQUIRES
 EXECUTION  OF AN EMPLOYMENT PROMISSORY NOTE AS A CONDITION OF EMPLOYMENT
 OR AGAINST WHOM AN EMPLOYER SEEKS TO ENFORCE SUCH A NOTE  MAY  BRING  AN
 ACTION  AGAINST SUCH EMPLOYER TO RECOVER ACTUAL DAMAGES OR FIVE THOUSAND
 DOLLARS, WHICHEVER IS GREATER, AND INJUNCTIVE RELIEF. IN THE EVENT OF  A
 SUCCESSFUL  ACTION, THE COURT SHALL AWARD ANY PLAINTIFF REASONABLE COSTS
 AND ATTORNEY FEES.
   § 1054. RULES. THE COMMISSIONER MAY PROMULGATE RULES  AND  REGULATIONS
 NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
 A. 584--B                           3
 
   § 1055. SAVINGS CLAUSE. IF ANY PORTION OF THIS ARTICLE OR THE APPLICA-
 TION  THEREOF TO ANY PERSON, OCCUPATION OR CIRCUMSTANCE IS HELD INVALID,
 THE REMAINDER OF THE ARTICLE AND THE APPLICATION OF  SUCH  PROVISION  TO
 OTHER  PERSONS,  EMPLOYEES,  OCCUPATIONS,  OR CIRCUMSTANCES SHALL NOT BE
 AFFECTED THEREBY.
   § 3. This act shall take effect immediately.