Overview
- Signed on December 19, 2025, the law deems employment promissory notes unconscionable and unenforceable, including training repayment clauses tied to early departure.
- The statute applies broadly to workers and training providers, covering employees, contractors, interns, volunteers, apprentices, and sole proprietors while excluding vendors of goods.
- Carve‑outs include payroll advances unrelated to training, payment for employer‑provided property, sabbatical terms for education personnel, and collectively bargained programs, with sign‑on bonuses potentially treated as advances.
- Violations carry NYSDOL civil penalties of $1,000–$5,000 per violation, and employers that sue to enforce banned agreements may owe the worker’s attorneys’ fees, with no stand‑alone private right of action.
- Unsettled issues include the scope of “sums advanced” and whether pre‑existing agreements are affected, with NYSDOL rulemaking and possible chapter amendments expected and counsel urging audits and pauses on collection efforts.