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S04070 Summary:

BILL NOS04070B
 
SAME ASSAME AS A00584-C
 
SPONSORMAY
 
COSPNSR
 
MLTSPNSR
 
Add Art 37 §§1050 - 1055, Lab L
 
Enacts the "trapped at work act"; prohibits the use of employment promissory notes.
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S04070 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4070--B
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                    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:
 
     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                                  ARTICLE 37
     6                             TRAPPED AT WORK ACT
     7  Section 1050. Definitions.
     8          1051. Scope.
     9          1052. Prohibiting the use of  employment  promissory  notes  and
    10                  other similar provisions.
    11          1053. Enforcement.
    12          1054. Rules.
    13          1055. Savings clause.
    14    § 1050. Definitions. For purposes of this article:
    15    1.  "Employer"  means  an individual, partnership, association, corpo-
    16  ration, limited  liability  company,  trust,  government  or  government
    17  subdivision, or any organized group that hires or contracts with a work-
    18  er to work for the employer. For the purposes of this article, this term
    19  shall  also  include  any  subsidiary of an employer and any individual,
    20  partnership, association, corporation, limited liability company, trust,
    21  government or government subdivision, or any organized group  associated
    22  with an employer that provides training to workers.
    23    2.  "Worker"  means  an  individual who is permitted to work for or on
    24  behalf of an employer. The term "worker" includes an employee, independ-
    25  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
 
     1  who  provides  a  service  or  services to an employer or to a client or
     2  customer of an employer on behalf of such employer,  and  an  individual
     3  who  provides  service through a business or nonprofit entity or associ-
     4  ation.  "Worker"  does not include an individual, even if the individual
     5  performs incidental service for the employer,  whose  sole  relationship
     6  with the employer is as a vendor of goods.
     7    3.  "Employment  promissory  note" means any instrument, agreement, or
     8  contract provision that requires a worker to pay the  employer,  or  the
     9  employer's  agent  or assignee, a sum of money if the worker leaves such
    10  employment before the passage of a stated period  of  time.  "Employment
    11  promissory  note"  includes  any such instrument, agreement, or contract
    12  provision which states such payment of moneys constitutes  reimbursement
    13  for training provided to the worker by the employer or by a third party.
    14    § 1051. Scope. The rights and remedies provided pursuant to this arti-
    15  cle  shall not supersede any other rights and remedies provided by stat-
    16  ute or common law.
    17    § 1052. Prohibiting the use of employment promissory notes  and  other
    18  similar provisions.  1. Beginning on the effective date of this article,
    19  no  employer  may  require,  as a condition of employment, any worker or
    20  prospective  worker  to  execute  an  employment  promissory  note.  The
    21  execution  of an employment promissory note as a condition of employment
    22  is unconscionable, against public policy,  and  unenforceable,  and  any
    23  such  note  shall be null and void. If any such note is part of a larger
    24  agreement, the invalidity of  such  note  shall  not  affect  the  other
    25  provisions of such agreement.
    26    2. Nothing in this section shall prohibit or render void or unenforce-
    27  able any agreement between a worker and an employer that:
    28    (a)  requires the worker to repay to the employer any sums advanced to
    29  such worker by the employer, unless such  sums  were  used  to  pay  for
    30  training related to the worker's employment with the employer;
    31    (b)  requires  the  worker to pay the employer for any property it has
    32  sold or leased to such worker;
    33    (c) requires educational personnel to comply with any terms or  condi-
    34  tions of sabbatical leaves granted by their employers; or
    35    (d) is entered into as part of a program agreed to by the employer and
    36  its workers' collective bargaining representative.
    37    § 1053. Enforcement. 1. Notwithstanding any other provision of law, an
    38  employee who is sued by an employer seeking to enforce the provisions of
    39  a  promissory  note  made null and void by this article shall be able to
    40  recover attorney's fees upon a successful defense.
    41    2. Any employer found to have violated this article shall be fined  by
    42  the  commissioner  not  less than one thousand dollars and not more than
    43  five thousand dollars for each violation.  Each  worker  or  prospective
    44  worker  whom  an  employer  required to execute an employment promissory
    45  note or against whom an employer seeks to  enforce  such  a  note  shall
    46  constitute a separate violation of this article.
    47    §  1054.  Rules. The commissioner may promulgate rules and regulations
    48  necessary to carry out the provisions of this article.
    49    § 1055. Savings clause. If any portion of this article or the applica-
    50  tion thereof to any person, occupation or circumstance is held  invalid,
    51  the  remainder  of  the article and the application of such provision to
    52  other persons, employees, occupations, or  circumstances  shall  not  be
    53  affected thereby.
    54    § 3. This act shall take effect immediately.
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