NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A584C
SPONSOR: Steck TITLE OF BILL:
An act to amend the labor law, in relation to enacting the "trapped at
work act"
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to prohibit reimbursement clauses or promis-
sory notes as a condition of employment.
SUMMARY OF PROVISIONS:
This bill would create a new article with six new sections in the labor
law.
New section 1050 would define employers, employees, and promissory
notes. Both public and private employers are included.
New section 1051 would establish the scope of the bill.
New section 1052 would prohibit employers from requiring, as a condition
of employment, any worker or prospective worker to execute a promissory
note. It would also render any existing note unenforceable. Nothing is
this new section would prohibit or render void or unenforceable any
agreement between a worker and an employer that:
1. Requires the worker 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;
2. Requires the worker to pay the employer for any property it has sold
or leased to such worker;
3. Requires educational personnel to comply with any terms or conditions
of sabbatical leaves granted by their employers; or
4. Is entered into as part of a program agreed to by the employer and
its workers' collective bargaining representative.
New section 1053 would establish penalties not less than $1,000 and not
more than $5,000 for each violation.
New section 1054 would allow the Department of Labor to establish neces-
sary rules and regulations to enforce this article.
New Section 1055 is the savings clause.
JUSTIFICATION:
Employers across the state have been trapping employees at work by
requiring employment promissory notes a/k/a "training reimbursement
agreements" as a condition of employment. Workers desperate for a job
will sign these contractual agreements without the advice of counsel,
unknowingly being trapped in a position under the threat of legal action
should not complete the terms of the contract. Minimum and low-wage
workers subject to these agreements are required to "repay" the employer
thousands of dollars should they leave the employment due to poor work-
ing conditions or anything unrelated to job performance for non-existent
"on the job" training while also making money for the employer. This
legislation prohibits this practice except under specific conditions,
such as where there is true training that must be paid for, property has
been sold or leased to the employee, sabbatical leaves and collective
bargaining agreements.
PRIOR LEGISLATIVE HISTORY:
New bill.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
A-print and B-print amendments make technical changes and remove the
statement of public policy section from the bill. C-print amendment
limits what the employee is entitled to receive when their employer sues
them to enforce the provisions of a promissory note made void by this
article. Said employee would not only be entitled to attorney's fees.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
