What is New York's trapped at work law?
New York’s Trapped at Work Act, enacted through Senate Bill S4070B (2025), adds Article 37 (§§ 1050–1055) to the New York Labor Law. Its primary purpose is to prohibit employers from requiring employees to sign or abide by employment promissory notes, often called training repayment agreement provisions (TRAPs). These agreements obligate an employee to repay the employer for training or onboarding costs if they leave a job before a certain period, effectively restricting job mobility.
Legal Analysis
Issue: Whether employers in New York can require employees to reimburse training expenses after termination or resignation.
Rule: Under the Trapped at Work Act, any employment contract, policy, or agreement that requires an employee to repay training, hiring, or retention-related costs as a condition of employment is deemed invalid and unenforceable (§ 1051, Lab L). The law treats such agreements as contrary to public policy by creating coercive economic barriers to job change.
Application: By enacting this law, New York joins several jurisdictions limiting the use of TRAPs, recognizing that they can trap workers in undesirable jobs and act as de facto non-compete clauses. Employers are now prohibited from:
- Requiring or enforcing training reimbursement agreements;
- Withholding wages to offset alleged training costs;
- Threatening legal action based on such promissory notes.
Violations subject employers to civil penalties and potential private actions under § 1054, Lab L.
Conclusion: The Trapped at Work Act ensures workers’ right to freely change employment by banning employment promissory notes in New York. Employers should immediately review and amend any onboarding or training repayment policies to comply with Labor Law §§ 1050–1055.