New York Enacts New Employment Laws

NY has restricted “training repayment agreement provisions (TRAPs) that require employees (or their “agents or assignees”) to sign a promissory note that they will reimburse their employers for training expenses paid by the employer before a certain employment duration is reached. According to Cooley Law:  

The broad ban on employment promissory notes specifically excludes agreements that require: 

  • Repayment for the cost of tuition and required educational materials for a transferable credential, as long as certain specified conditions are met, including that the repayment agreement is separate from the employment contract and the transferable credential is not a condition of employment.  

  • Payment for any employer property sold or leased to the employee, as long as the sale or lease was voluntary. 

  • Repayment of a “financial bonus, relocation assistance, or other non-educational incentives or other payment or benefit” that is not tied to specific job performance, unless the employee was terminated for any reason other than misconduct, or the duties or requirements of the job were misrepresented to the employee. 

  • Educational personnel comply with terms or conditions of their sabbatical leave. 

  • Obligations pursuant to a collective bargaining agreement. 

Last December, the state also amended its Human Rights Law to include disparate impact prohibition and liability; and the state has just banned the use of consumer credit history as a factor in employment considerations. 

New York City has also expanded its version of sick & safe leave (called “Earned Sick and Safe Time Act (ESSTA) Leave”) to include public disasters; caregiving; any legal proceedings (including preparation therefor) regarding subsistence benefits or housing; and anything to do with workplace violence or its effects. 

The city has also determined to start its own version of the discontinued EEO-1, Component 2 for pay equity studies, beginning in 2028.

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