On December 19, 2025, the Governor signed into law the “Trapped at Work Act,” which amends the Labor Law to add a new Article 37 which, effective immediately, prohibits private and public sector employers from requiring, as a condition of employment, that any “worker” or “prospective worker” be required to repay the employer (or their agent/assignee) for training costs or pay any sum of money if the worker/prospective worker leaves employment with the employer before a specified period of time.
Prior to this law, it was common to enter into employment agreements that required employees to repay the employer for training costs if the employee left soon after being hired (e.g., repaying an employer for Commercial Driver’s License training and related costs if the employee left within a year). This new law generally prohibits that kind of repayment agreement and expands upon this concept to also ban any kind of “instrument, agreement or contract provision” that requires “reimbursement for training provided to the worker by the employer or a third party” or “any sum of money if the worker leaves employment before the passage of a stated period of time.” Although the statute refers to leaving “employment” with the employer, it is important to note that the terms “worker” and “prospective worker” cover numerous types of non-employees including independent contractors; externs; interns; volunteers; apprentices; sole proprietors who provide services to or on behalf of an employer; and individuals who provide services through a business or nonprofit entity or association. Excluded are individuals whose sole relationship with the employer is as a vendor of goods. Additionally, the term “employer” is defined broadly and covers individuals; partnerships; associations; corporations; LLCs; trusts; governments and their subdivisions; any organized groups that hire or contract with workers to work for the employer or that are associated with an employer and provide training to workers; and any subsidiary of these “employers.”
Notably, there are a number of carve-outs in this law, including repayment for: any non-training-related advanced money to the employee; any property sold or leased to the employee; compliance with the terms of a sabbatical leave for educational personnel; or provisions of collectively bargained agreements. With respect to the carve-out for collectively bargained provisions, be advised that the statute’s language states that the prohibition on repayment agreements/terms excludes agreements that are “entered into as part of a program agreed to by the employer and its workers’ collective bargaining representative.” The statute is silent on what a “program” is for purposes of this law. For now, in the absence of more specific guidance, we believe it is intended to generally cover collectively bargained provisions, which would be consistent with many other provisions of the Labor Law.
Employers that violate the law will be subject to fines by the Department of Labor in the range of $1,000 to $5,000 per violation (i.e., per worker or prospective worker with whom the employer executes or tries to enforce an agreement containing a now illegal provision(s)). In addition, any employee who successfully sues an employer for violating this law will be entitled to recover attorneys’ fees.
For employers with agreements that contain a provision(s) that is now prohibited by this law, the provision(s) is deemed null and void, but the remainder of the agreement may continue to be in full force and effect. If you have any questions about this law and related provisions in agreements with your workers or would like us to review your agreements to ensure compliance with this law, please contact us.
