Bill > S08822

This bill amends existing labor law to prohibit employers from using "employment promissory notes," which are agreements requiring an employee to pay the employer if they leave their job before a certain time, even if the payment is framed as reimbursement for training. The bill clarifies that an "employer" is any entity that hires workers, including the state and its subdivisions, and an "employee" is any person hired for pay. It also defines a "transferable credential" as a widely recognized qualification like a degree, diploma, or license that enhances an employee's employability with other employers, excluding employer-specific training or legally mandated safety and compliance training. While generally prohibiting these notes, the bill allows for specific agreements where an employee voluntarily agrees in a separate written contract to reimburse an employer for the cost of tuition, fees, and materials for a transferable credential, provided certain conditions are met, such as the credential not being a condition of employment and repayment being prorated and not required if the employee is terminated without misconduct. The bill also establishes a process for aggrieved employees to file complaints and outlines penalties for employers who violate these provisions, with fines ranging from one thousand to five thousand dollars per violation, and clarifies that the law will take effect one year after its enactment.

https://www.nysenate.gov/legislation/bills/2025/S8822