NY State Senate Bill 2025-S4070B

Current Bill Status Via A584 - Delivered to Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 08, 2025	delivered to governor
Jun 12, 2025	returned to assembly passed senate 3rd reading cal.1618 substituted for s4070b
Jun 12, 2025	substituted by a584c
Jun 09, 2025	ordered to third reading cal.1618 committee discharged and committed to rules
May 16, 2025	print number 4070b
May 16, 2025	amend and recommit to labor
Apr 17, 2025	print number 4070a
Apr 17, 2025	amend and recommit to labor
Jan 31, 2025	referred to labor

Votes

- Jun 12, 2025 - Floor Vote
  A584
  
  Aye
  
  38
  
  Nay
  
  21
  
  Absent
  
  0
  
  Excused
  
  4
  
  Abstained
  
  0
  - - Floor Vote: Jun 12, 2025
      
      aye (38)
      
      Addabbo Jr.
      
      Bailey
      
      Baskin
      
      Brisport
      
      Brouk
      
      Bynoe
      
      Cleare
      
      Comrie
      
      Cooney
      
      Fahy
      
      Fernandez
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Parker
      
      Persaud
      
      Rivera
      
      Ryan
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Webb
      
      nay (21)
      
      Ashby
      
      Borrello
      
      Canzoneri-Fitzpatrick
      
      Chan
      
      Gallivan
      
      Griffo
      
      Helming
      
      Lanza
      
      Martins
      
      Mattera
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Rhoads
      
      Rolison
      
      Stec
      
      Tedisco
      
      Walczyk
      
      Weber
      
      Weik
      
      excused (4)
      
      Murray
      
      Myrie
      
      Ramos
      
      Sutton
      
      The following Member(s) participated via videoconferencing: Brouk
  Jun 9, 2025 - Rules Committee Vote
  S4070B
  
  Aye
  
  14
  
  Nay
  
  2
  
  Aye with Reservations
  
  5
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Rules Committee Vote: Jun 9, 2025
      
      aye (14)
      
      Addabbo Jr.
      
      Bailey
      
      Comrie
      
      Fernandez
      
      Gianaris
      
      Harckham
      
      Hoylman-Sigal
      
      Krueger
      
      Liu
      
      Mayer
      
      Myrie
      
      Parker
      
      Sepúlveda
      
      Stewart-Cousins
      
      nay (2)
      
      O'Mara
      
      Ortt
      
      aye wr (5)
      
      Gallivan
      
      Griffo
      
      Helming
      
      Lanza
      
      Stec

Bill Amendments

Original

B (Active)

2025-S4070 - Details

See Assembly Version of this Bill:: A584
Law Section:: Labor Law
Laws Affected:: Add Art 37 §§1050 - 1055, Lab L
Versions Introduced in 2023-2024 Legislative Session:: S6794, A6819

2025-S4070 - Summary

Enacts the "trapped at work act"; prohibits the use of employment promissory notes.

2025-S4070 - Sponsor Memo

                                 
BILL NUMBER: S4070

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the labor law, in relation to enacting the "trapped at
work act"


 
PURPOSE OR GENERAL IDEA OF BILL:  To prohibit reimbursement clauses or
promissory notes as a condition of employment.

 
SUMMARY OF PROVISIONS:

Section 1. Definitions.

Section 2.

(a) Rendering an employment promissory note unenforceable.

(b) 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.

(c) Nothing is this section shall prohibit or render void or unenforcea-
ble any agreement between a worker and an employer:

1. Requiring 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;

2. Requiring the worker to pay the employer for any property it has sold
or leased to such worker; or

3. Requiring educational personnel to comply with any terms or condi-
tions of sabbatical leaves granted by their employers; or

4. Entered into as part of a program agreed to by the employer and its
workers' collective bargaining representative.

Section 3. Sets the effective date.

 
JUSTIFICATION:

Employers across the state have been trapping employees at work by
requiring employment promissory notes a/k/a "training reimbursement
agreements" as a condition of employment. Workers desperate for a job
will sign these contractual agreements without the advice of counsel,
unknowingly being trapped in a position under the threat of legal action
should not complete the terms of the contract. Minimum and low-wage
workers subject to these agreements are required to "repay" the employer
thousands of dollars should they leave the employment due to poor work-
ing conditions or anything unrelated to job performance for non-existent
"on the job" training while also making money for the employer. This
legislation prohibits this practice except under specific conditions,
such as where there is true training that must be paid for, property has
been sold or leased to the employee, sabbatical leaves and collective
bargaining agreements.

 
PRIOR LEGISLATIVE HISTORY:

2023-2024 - S.6794 (May) / A.6819-A (Steck)

 
FISCAL IMPLICATIONS:

None to state or local government.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4070 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4070
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed 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. 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
 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01084-02-5

 S. 4070                             2
 
 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
   (D) IS ENTERED INTO AS PART OF A PROGRAM AGREED TO BY THE EMPLOYER AND
 ITS WORKERS' COLLECTIVE BARGAINING REPRESENTATIVE.
 S. 4070                             3
 
   § 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.

2025-S4070A - Details

See Assembly Version of this Bill:: A584
Law Section:: Labor Law
Laws Affected:: Add Art 37 §§1050 - 1055, Lab L
Versions Introduced in 2023-2024 Legislative Session:: S6794, A6819

2025-S4070A - Summary

Enacts the "trapped at work act"; prohibits the use of employment promissory notes.

2025-S4070A - Sponsor Memo

                                 
BILL NUMBER: S4070A

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the labor law, in relation to enacting the "trapped at
work act"

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to prohibit reimbursement clauses or promis-
sory notes as a condition of employment.

 
SUMMARY OF PROVISIONS:

This bill would create a new article with six new sections in the labor
law.

New section 1050 would define employers, employees, and promissory
notes. Both public and private employers are included.

New section 1051 would establish the scope of the bill.

New section 1052 would prohibit employers from requiring, as a condition
of employment, any worker or prospective worker to execute a promissory
note. It would also render any existing note unenforceable. Nothing is
this new section would prohibit or render void or unenforceable any
agreement between a worker and an employer that:

1. 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;

2. Requires the worker to pay the employer for any property it has sold
or leased to such worker;

3. Requires educational personnel to comply with any terms or conditions
of sabbatical leaves granted by their employers; or

4. Is entered into as part of a program agreed to by the employer and
its workers' collective bargaining representative.

New section 1053 would establish penalties not less than $1,000 and not
more than $5,000 for each violation.

New section 1054 would allow the Department of Labor to establish neces-
sary rules and regulations to enforce this article.

New Section 1055 is the savings clause.

Section 3. Sets the effective date.

 
JUSTIFICATION:

Employers across the state have been trapping employees at work by
requiring employment promissory notes a/k/a "training reimbursement
agreements" as a condition of employment. Workers desperate for a job
will sign these contractual agreements without the advice of counsel,
unknowingly being trapped in a position under the threat of legal action
should not complete the terms of the contract. Minimum and low-wage
workers subject to these agreements are required to "repay" the employer
thousands of dollars should they leave the employment due to poor work-
ing conditions or anything unrelated to job performance for non-existent
"on the job" training while also making money for the employer. This
legislation prohibits this practice except under specific conditions,
such as where there is true training that must be paid for, property has
been sold or leased to the employee, sabbatical leaves and collective
bargaining agreements.

 
PRIOR LEGISLATIVE HISTORY:

2023-2024 - S.6794 (May) / A.6819-A (Steck)

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION

A-print and B-print amendments make technical changes and remove the
statement of public policy section from the bill.

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4070A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4070--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be  committed  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. 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,
 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01084-07-5
 S. 4070--A                          2
 
 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.
   § 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.

co-Sponsors

2025-S4070B (ACTIVE) - Details

See Assembly Version of this Bill:: A584
Law Section:: Labor Law
Laws Affected:: Add Art 37 §§1050 - 1055, Lab L
Versions Introduced in 2023-2024 Legislative Session:: S6794, A6819

2025-S4070B (ACTIVE) - Summary

Enacts the "trapped at work act"; prohibits the use of employment promissory notes.

2025-S4070B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4070B

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the labor law, in relation to enacting the "trapped at
work act"

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to prohibit reimbursement clauses or promis-
sory notes as a condition of employment.

 
SUMMARY OF PROVISIONS:

This bill would create a new article with six new sections in the labor
law.

New section 1050 would define employers, employees, and promissory
notes. Both public and private employers are included.

New section 1051 would establish the scope of the bill.

New section 1052 would prohibit employers from requiring, as a condition
of employment, any worker or prospective worker to execute a promissory
note. It would also render any existing note unenforceable. Nothing is
this new section would prohibit or render void or unenforceable any
agreement between a worker and an employer that:

1. 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;

2. Requires the worker to pay the employer for any property it has sold
or leased to such worker;

3. Requires educational personnel to comply with any terms or conditions
of sabbatical leaves granted by their employers; or

4. Is entered into as part of a program agreed to by the employer and
its workers' collective bargaining representative.

New section 1053 would establish penalties not less than $1,000 and not
more than $5,000 for each violation.

New section 1054 would allow the Department of Labor to establish neces-
sary rules and regulations to enforce this article.

New Section 1055 is the savings clause.

 
JUSTIFICATION:

Employers across the state have been trapping employees at work by
requiring employment promissory notes a/k/a "training reimbursement
agreements" as a condition of employment. Workers desperate for a job
will sign these contractual agreements without the advice of counsel,
unknowingly being trapped in a position under the threat of legal action
should not complete the terms of the contract. Minimum and low-wage
workers subject to these agreements are required to "repay" the employer
thousands of dollars should they leave the employment due to poor work-
ing conditions or anything unrelated to job performance for non-existent
"on the job" training while also making money for the employer. This
legislation prohibits this practice except under specific conditions,
such as where there is true training that must be paid for, property has
been sold or leased to the employee, sabbatical leaves and collective
bargaining agreements.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:

A-print and B-print amendments make technical changes and remove the
statement of public policy section from the bill. C-print amendment
limits what the employee is entitled to receive when their employer sues
them to enforce the provisions of a promissory note made void by this
article. Said employee would not only be entitled to attorney's fees.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4070B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4070--B
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             January 31, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Labor  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee  --  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. 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,
 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01084-09-5
 S. 4070--B                          2
 
 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 NULL AND 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. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN
 EMPLOYEE WHO IS SUED BY AN EMPLOYER SEEKING TO ENFORCE THE PROVISIONS OF
 A  PROMISSORY  NOTE  MADE NULL AND VOID BY THIS ARTICLE SHALL BE ABLE TO
 RECOVER ATTORNEY'S FEES UPON A SUCCESSFUL DEFENSE.
   2. ANY EMPLOYER FOUND TO HAVE VIOLATED THIS ARTICLE 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.
   §  1054.  RULES. THE COMMISSIONER MAY PROMULGATE RULES AND REGULATIONS
 NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
   § 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.

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Senate Bill S4070B

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Sponsored By

Rachel May

Current Bill Status Via A584 - Delivered to Governor

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2025-S4070 - Details

2025-S4070 - Summary

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2025-S4070 - Bill Text download pdf

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co-Sponsors

Robert Jackson

2025-S4070B (ACTIVE) - Details

2025-S4070B (ACTIVE) - Summary

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2025-S4070B (ACTIVE) - Bill Text download pdf

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