On December 19, 2025, Governor Kathy Hochul signed into law the “Trapped at Work Act.” The law became effective immediately.
The new law prohibits employers from requiring “employment promissory notes” as a condition of employment. “Employment promissory note” is defined as any instrument, agreement, or contract provision that requires a worker to pay the employer a sum of money if the worker leaves such employment before the passage of a stated period of time. An “employment promissory note” includes any such instrument, agreement or contract provision which states such payment of money constitutes reimbursement for training provided to the worker by the employer or by a third party. These agreements are now deemed unconscionable, contrary to public policy, and unenforceable.
The prohibition excludes the following:
- Agreements between a worker and employer that requires repayment of payroll advances that are not related to training;
- Agreements that require the worker to pay the employer for any property it has sold or leased to the worker;
- Agreements that require educational personnel to comply with terms or conditions of sabbatical leave;
- Agreements entered into as part of a program agreed to pursuant to a collective bargaining agreement.
Employers that fail to comply with the Act can be subject to civil penalties of $1,000–$5,000 per violation from the New York State Department of Labor and attorneys’ fees for employees who successfully defend against enforcement of a void agreement. The law does not provide a private right of action.
New York employers should review their employment agreements and offer letters to ensure there are no training repayment provisions. Should you have any questions regarding this new law, please contact Ali Law Group.
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