BILL NUMBER: S8822
SPONSOR: MAY
 
TITLE OF BILL:
An act to amend the labor law, in relation to prohibiting the use of
employment promissory notes and other similar provisions; and to amend a
chapter of the laws of 2025 amending the labor law relating to enacting
the "trapped at work act", as proposed in legislative bills numbers S.
4070-B and A. 584-C, in relation to the effectiveness thereof
 
PURPOSE OF BILL:
This is a chapter amendment that makes changes to L.2025, C.643.
 
SUMMARY OF SPECIFIC PROVISIONS:
This legislation amends the underlying chapter to revise definitions,
including the definition of "employer," and defines "transferable
credential" as a degree, diploma, license, or certificate widely recog-
nized by employers in the relevant industry.
The bill establishes specific exceptions to the prohibition on employ-
ment promissory notes. It permits agreements requiring repayment for
transferable credentials if such agreements are in writing, voluntary,
not a condition of employment, limited to the actual cost of the creden-
tial, and prorated over the required employment period. It also clari-
fies that employees may be required to repay financial bonuses, relo-
cation assistance, or other non-educational incentives, provided the
employee was not terminated for reasons other than misconduct.
Additionally, the bill authorizes the Commissioner of Labor to assess
civil penalties for violations, taking into consideration the good faith
of the employer and the gravity of the violation. Finally, it delays the
effective date of the underlying chapter to one year after it becomes
law.
 
JUSTIFICATION:
This legislation is a negotiated change to the underlying chapter.
 
LEGISLATIVE HISTORY:
Chapter amendment to Chapter 643 of the Laws of 2025.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided, however, that sections
one, two, and three of this act shall take effect on the same date and
in the same manner as a chapter of the laws of 2025 amending the Labor
Law relating to enacting the "trapped at work act", as proposed in
legislative bills numbers S.4070-B and A.584-C, takes effect.