Shown verbatim: the complete text as captured from the official source posted by the New York State Senate, fetched 2026-08-11. Nothing is edited or removed. Where this bill amends existing law, language marked for deletion in the official source appears here in brackets. The official bill page.
S T A T E O F N E W Y O R K
________________________________________________________________________
9452
I N A S S E M B L Y
January 6, 2026
___________
Introduced by M. of A. STECK -- read once and referred to the Committee
on Labor
AN ACT to amend the labor law, in relation to prohibiting the use of
employment promissory notes and other similar provisions; and to amend
a chapter of the laws of 2025 amending the labor law relating to
enacting the "trapped at work act", as proposed in legislative bills
numbers S. 4070-B and A. 584-C, in relation to the effectiveness
thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1050 of the labor law, as added by a chapter of the
laws of 2025 amending the labor law relating to enacting the "trapped at
work act", as proposed in legislative bills numbers S. 4070-B and A.
584-C, is amended to read as follows:
§ 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] ANY PERSON, CORPO-
RATION, LIMITED LIABILITY COMPANY, OR ASSOCIATION EMPLOYING ANY INDIVID-
UAL IN ANY OCCUPATION, INDUSTRY, TRADE, BUSINESS OR SERVICE INCLUDING
THE STATE AND ITS POLITICAL SUBDIVISIONS.
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01084-10-6
A. 9452 2
with the employer is as a vendor of goods] "EMPLOYEE" MEANS ANY PERSON
EMPLOYED FOR HIRE BY AN EMPLOYER IN ANY EMPLOYMENT.
3. "Employment promissory note" means any instrument, agreement, or
contract provision that requires [a worker] AN EMPLOYEE to pay the
employer, or the employer's agent or assignee, a sum of money if the
[worker leaves such employment] EMPLOYEE'S EMPLOYMENT RELATIONSHIP WITH
A SPECIFIC EMPLOYER TERMINATES before the passage of a stated period of
time. ["Employment promissory note" includes any such instrument, agree-
ment, or contract provision which states such payment of moneys consti-
tutes reimbursement for training provided to the worker by the employer
or by a third party.]
4. "TRANSFERABLE CREDENTIAL" SHALL MEAN ANY DEGREE, DIPLOMA, LICENSE,
CERTIFICATE, OR DOCUMENTED EVIDENCE OF SKILL PROFICIENCY OR COURSE
COMPLETION THAT IS WIDELY RECOGNIZED BY EMPLOYERS IN THE RELEVANT INDUS-
TRY AS A QUALIFICATION FOR EMPLOYMENT, INDEPENDENT OF THE EMPLOYER'S
SPECIFIC BUSINESS PRACTICES, OR THAT PROVIDES SKILLS OR QUALIFICATIONS
THAT DEMONSTRABLY ENHANCE THE EMPLOYEE'S EMPLOYABILITY WITH OTHER
EMPLOYERS IN THE RELEVANT INDUSTRY. NOTWITHSTANDING THE FOREGOING, A
"TRANSFERABLE CREDENTIAL" SHALL NOT INCLUDE:
(A) EMPLOYER-SPECIFIC OR NON-TRANSFERABLE TRAINING. (I) INSTRUCTION
REGARDING THE EMPLOYER'S PROPRIETARY PROCESSES, PROPRIETARY SYSTEMS,
INTERNAL POLICIES, PROPRIETARY SOFTWARE, OR PROPRIETARY EQUIPMENT UNIQUE
TO THE EMPLOYER, OR (II) INSTRUCTION THAT DOES NOT QUALIFY THE EMPLOYEE
FOR A NEW OCCUPATIONAL TITLE, CLASSIFICATION, OR INDUSTRY-RECOGNIZED
CREDENTIAL AND INSTEAD CONSISTS OF SKILLFUL VARIATIONS OF GENERAL PROC-
ESSES KNOWN TO THE RELEVANT TRADE OR INDUSTRY.
(B) MANDATED SAFETY AND COMPLIANCE TRAINING. ANY TRAINING REQUIRED BY
FEDERAL, STATE, OR LOCAL LAW TO MAINTAIN WORKPLACE SAFETY, INCLUDING BUT
NOT LIMITED TO OSHA CERTIFICATIONS, SEXUAL HARASSMENT PREVENTION, OR
DIVERSITY TRAINING.
§ 2. Section 1052 of the labor law, as added by a chapter of the laws
of 2025 amending the labor law relating to enacting the "trapped at work
act", as proposed in legislative bills numbers S. 4070-B and A. 584-C,
is amended to read as follows:
§ 1052. Prohibiting the use of employment promissory notes and other
similar provisions. 1. [Beginning on the effective date of this arti-
cle, no] NO employer may require, as a condition of employment, any
[worker] EMPLOYEE or prospective [worker] EMPLOYEE to execute an employ-
ment 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] AN EMPLOYEE and an employer that:
(a) requires the [worker] EMPLOYEE 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;] REIMBURSE THE EMPLOYER FOR THE COST OF
TUITION, FEES, AND REQUIRED EDUCATIONAL MATERIALS FOR A TRANSFERABLE
CREDENTIAL THAT MEETS ALL OF THE FOLLOWING REQUIREMENTS:
(I) THE AGREEMENT IS SET FORTH IN A WRITTEN CONTRACT THAT IS OFFERED
SEPARATELY FROM ANY CONTRACT FOR EMPLOYMENT.
(II) THE AGREEMENT DOES NOT REQUIRE THE EMPLOYEE TO OBTAIN THE TRANS-
FERABLE CREDENTIAL AS A CONDITION OF EMPLOYMENT.
A. 9452 3
(III) THE AGREEMENT SPECIFIES THE REPAYMENT AMOUNT BEFORE THE EMPLOYEE
AGREES TO THE CONTRACT, AND THE REPAYMENT AMOUNT DOES NOT EXCEED THE
COST TO THE EMPLOYER OF THE TUITION, FEES, AND REQUIRED EDUCATIONAL
MATERIALS FOR THE TRANSFERABLE CREDENTIAL RECEIVED BY THE EMPLOYEE.
(IV) THE AGREEMENT PROVIDES FOR A PRORATED REPAYMENT AMOUNT DURING ANY
REQUIRED EMPLOYMENT PERIOD THAT IS PROPORTIONAL TO THE TOTAL REPAYMENT
AMOUNT AND THE LENGTH OF THE REQUIRED EMPLOYMENT PERIOD AND DOES NOT
REQUIRE AN ACCELERATED PAYMENT SCHEDULE IF THE EMPLOYEE SEPARATES FROM
THE EMPLOYMENT.
(V) THE AGREEMENT DOES NOT REQUIRE REPAYMENT TO THE EMPLOYER BY THE
EMPLOYEE IF THE EMPLOYEE IS TERMINATED, EXCEPT IF THE EMPLOYEE IS TERMI-
NATED FOR MISCONDUCT.
(B) REQUIRES THE EMPLOYEE TO PAY THE EMPLOYER FOR ANY PROPERTY THE
EMPLOYER HAS SOLD OR LEASED TO THE EMPLOYEE, AS LONG AS SUCH SALE OR
LEASE WAS VOLUNTARY.
(C) REQUIRES THE EMPLOYEE TO REPAY A FINANCIAL BONUS, RELOCATION
ASSISTANCE, OR OTHER NON-EDUCATIONAL INCENTIVE OR OTHER PAYMENT OR BENE-
FIT THAT IS NOT TIED TO SPECIFIC JOB PERFORMANCE, UNLESS THE EMPLOYEE
WAS TERMINATED FOR ANY REASON OTHER THAN MISCONDUCT OR THE DUTIES OR
REQUIREMENTS OF THE JOB WERE MISREPRESENTED TO THE EMPLOYEE.
[(c)] (D) requires educational personnel to comply with any terms or
conditions of sabbatical leaves granted by their employers; or
[(d)] (E) is entered into as part of a program agreed to by the
employer and its [workers'] EMPLOYEES' collective bargaining represen-
tative.
§ 3. Subdivision 2 of section 1053 of the labor law, as added by a
chapter of the laws of 2025 amending the labor law relating to enacting
the "trapped at work act", as proposed in legislative bills numbers S.
4070-B and A. 584-C, is amended to read as follows:
2. AN EMPLOYEE OR PROSPECTIVE EMPLOYEE WHO IS AGGRIEVED BY A VIOLATION
OF THIS ARTICLE MAY FILE A COMPLAINT WITH THE COMMISSIONER. Any employer
[found] DETERMINED BY THE COMMISSIONER 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. IN ASSESSING
THE AMOUNT OF THE PENALTY, THE COMMISSIONER SHALL GIVE DUE CONSIDERATION
TO THE SIZE OF THE EMPLOYER'S BUSINESS, THE GOOD FAITH BASIS OF THE
EMPLOYER TO BELIEVE THAT ITS CONDUCT WAS IN COMPLIANCE WITH THE LAW, THE
GRAVITY OF THE VIOLATION, AND THE HISTORY OF PREVIOUS VIOLATIONS. Each
[worker] EMPLOYEE or prospective [worker] EMPLOYEE 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.
§ 4. Section 3 of a chapter of the laws of 2025 amending the labor law
relating to enacting the "trapped at work act", as proposed in legisla-
tive bills numbers S. 4070-B and A. 584-C, is amended to read as
follows:
§ 3. This act shall take effect [immediately] ONE YEAR AFTER IT SHALL
HAVE BECOME A LAW.
§ 5. This act shall take effect immediately; provided, however, that
sections one, two, and three of this act shall take effect on the same
date and in the same manner as a chapter of the laws of 2025 amending
the labor law relating to enacting the "trapped at work act", as
proposed in legislative bills numbers S. 4070-B and A. 584-C, takes
effect.Every fact on this page links to its source, starting with the official bill record.