<STYLE><!--U {color: Green}S {color: RED} I {color: DARKBLUE; background-color:yellow} P.brk {page-break-before:always}--></STYLE> <BASEFONT SIZE=3> <PRE WIDTH="99"> <FONT SIZE=5><B> STATE OF NEW YORK</B></FONT> ________________________________________________________________________ 4070--A 2025-2026 Regular Sessions <FONT SIZE=5><B> IN SENATE</B></FONT> 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" <B><U>The People of the State of New York, represented in Senate and Assem-</U></B> <B><U>bly, do enact as follows:</U></B> 1 Section 1. Short title. This act shall be known and may be cited as 2 the "trapped at work act". 3 § 2. The labor law is amended by adding a new article 37 to read as 4 follows: 5 <B><U>ARTICLE 37</U></B> 6 <B><U>TRAPPED AT WORK ACT</U></B> 7 <B><U>Section 1050. Definitions.</U></B> 8 <B><U>1051. Scope.</U></B> 9 <B><U>1052. Prohibiting the use of employment promissory notes and</U></B> 10 <B><U>other similar provisions.</U></B> 11 <B><U>1053. Enforcement.</U></B> 12 <B><U>1054. Rules.</U></B> 13 <B><U>1055. Savings clause.</U></B> 14 <B><U>§ 1050. Definitions. For purposes of this article:</U></B> 15 <B><U>1. "Employer" means an individual, partnership, association, corpo-</U></B> 16 <B><U>ration, limited liability company, trust, government or government</U></B> 17 <B><U>subdivision, or any organized group that hires or contracts with a work-</U></B> 18 <B><U>er to work for the employer. For the purposes of this article, this term</U></B> 19 <B><U>shall also include any subsidiary of an employer and any individual,</U></B> 20 <B><U>partnership, association, corporation, limited liability company, trust,</U></B> 21 <B><U>government or government subdivision, or any organized group associated</U></B> 22 <B><U>with an employer that provides training to workers.</U></B> 23 <B><U>2. "Worker" means an individual who is permitted to work for or on</U></B> 24 <B><U>behalf of an employer. The term "worker" includes an employee, independ-</U></B> 25 <B><U>ent contractor, extern, intern, volunteer, apprentice, sole proprietor</U></B> 26 <B><U>who provides a service or services to an employer or to a client or</U></B> EXPLANATION--Matter in <B><U>italics</U></B> (underscored) is new; matter in brackets [<B><S> </S></B>] is old law to be omitted. LBD01084-07-5 </PRE><P CLASS="brk"><PRE WIDTH="99"> S. 4070--A 2 1 <B><U>customer of an employer on behalf of such employer, and an individual</U></B> 2 <B><U>who provides service through a business or nonprofit entity or associ-</U></B> 3 <B><U>ation. "Worker" does not include an individual, even if the individual</U></B> 4 <B><U>performs incidental service for the employer, whose sole relationship</U></B> 5 <B><U>with the employer is as a vendor of goods.</U></B> 6 <B><U>3. "Employment promissory note" means any instrument, agreement, or</U></B> 7 <B><U>contract provision that requires a worker to pay the employer, or the</U></B> 8 <B><U>employer's agent or assignee, a sum of money if the worker leaves such</U></B> 9 <B><U>employment before the passage of a stated period of time. "Employment</U></B> 10 <B><U>promissory note" includes any such instrument, agreement, or contract</U></B> 11 <B><U>provision which states such payment of moneys constitutes reimbursement</U></B> 12 <B><U>for training provided to the worker by the employer or by a third party.</U></B> 13 <B><U>§ 1051. Scope. The rights and remedies provided pursuant to this arti-</U></B> 14 <B><U>cle shall not supersede any other rights and remedies provided by stat-</U></B> 15 <B><U>ute or common law.</U></B> 16 <B><U>§ 1052. Prohibiting the use of employment promissory notes and other</U></B> 17 <B><U>similar provisions. 1. Beginning on the effective date of this article,</U></B> 18 <B><U>no employer may require, as a condition of employment, any worker or</U></B> 19 <B><U>prospective worker to execute an employment promissory note. The</U></B> 20 <B><U>execution of an employment promissory note as a condition of employment</U></B> 21 <B><U>is unconscionable, against public policy, and unenforceable, and any</U></B> 22 <B><U>such note shall be void. If any such note is part of a larger agreement,</U></B> 23 <B><U>the invalidity of such note shall not affect the other provisions of</U></B> 24 <B><U>such agreement.</U></B> 25 <B><U>2. Nothing in this section shall prohibit or render void or unenforce-</U></B> 26 <B><U>able any agreement between a worker and an employer that:</U></B> 27 <B><U>(a) requires the worker to repay to the employer any sums advanced to</U></B> 28 <B><U>such worker by the employer, unless such sums were used to pay for</U></B> 29 <B><U>training related to the worker's employment with the employer;</U></B> 30 <B><U>(b) requires the worker to pay the employer for any property it has</U></B> 31 <B><U>sold or leased to such worker;</U></B> 32 <B><U>(c) requires educational personnel to comply with any terms or condi-</U></B> 33 <B><U>tions of sabbatical leaves granted by their employers; or</U></B> 34 <B><U>(d) is entered into as part of a program agreed to by the employer and</U></B> 35 <B><U>its workers' collective bargaining representative.</U></B> 36 <B><U>§ 1053. Enforcement. 1. Any employer found to have violated this arti-</U></B> 37 <B><U>cle shall be fined by the commissioner not less than one thousand</U></B> 38 <B><U>dollars and not more than five thousand dollars for each violation. Each</U></B> 39 <B><U>worker or prospective worker whom an employer required to execute an</U></B> 40 <B><U>employment promissory note or against whom an employer seeks to enforce</U></B> 41 <B><U>such a note shall constitute a separate violation of this article.</U></B> 42 <B><U>2. Any worker or prospective worker for whom an employer requires</U></B> 43 <B><U>execution of an employment promissory note as a condition of employment</U></B> 44 <B><U>or against whom an employer seeks to enforce such a note may bring an</U></B> 45 <B><U>action against such employer to recover actual damages or five thousand</U></B> 46 <B><U>dollars, whichever is greater, and injunctive relief. In the event of a</U></B> 47 <B><U>successful action, the court shall award any plaintiff reasonable costs</U></B> 48 <B><U>and attorney fees.</U></B> 49 <B><U>§ 1054. Rules. The commissioner may promulgate rules and regulations</U></B> 50 <B><U>necessary to carry out the provisions of this article.</U></B> 51 <B><U>§ 1055. Savings clause. If any portion of this article or the applica-</U></B> 52 <B><U>tion thereof to any person, occupation or circumstance is held invalid,</U></B> 53 <B><U>the remainder of the article and the application of such provision to</U></B> 54 <B><U>other persons, employees, occupations, or circumstances shall not be</U></B> 55 <B><U>affected thereby.</U></B> 56 § 3. This act shall take effect immediately.