New York has enacted the Trapped at Work Act, a law aimed at protecting workers from restrictive employment agreements. The act prohibits employers from requiring workers or job applicants to sign employment promissory notes. These notes typically require payment to the employer if the worker leaves before a certain period, often as reimbursement for training. Under the new law, such notes are considered void, unenforceable, and against public policy.
The legislation provides clear definitions to ensure broad coverage. Employers include individuals, companies, and organizations that hire or train workers, while workers include employees, contractors, interns, volunteers, and others providing services. Employment promissory notes refer to any agreement that imposes payment for leaving early, including those tied to training costs. The law does allow certain agreements to remain valid, such as repayment of cash advances, payment for property sold or leased to the worker, compliance with sabbatical terms for educational staff, and agreements under collective bargaining programs.
To enforce compliance, employers who violate the law face fines ranging from $1,000 to $5,000 per violation, with each affected worker counted separately. Employees who successfully defend against lawsuits enforcing these notes can recover attorney’s fees. The commissioner is authorized to issue rules to implement the law, and the act takes effect immediately.