N.Y. Lab. Law § 1052

* § 1052. Prohibiting the use of employment promissory notes and other\nsimilar provisions. 1. No employer may require, as a condition of\nemployment, any employee or prospective employee to execute an\nemployment promissory note. The execution of an employment promissory\nnote as a condition of employment is unconscionable, against public\npolicy, and unenforceable, and any such note shall be null and void. If\nany such note is part of a larger agreement, the invalidity of such note\nshall not affect the other provisions of such agreement.\n 2. Nothing in this section shall prohibit or render void or\nunenforceable any agreement between an employee and an employer that:\n (a) requires the employee to reimburse the employer for the cost of\ntuition, fees, and required educational materials for a transferable\ncredential that meets all of the following requirements:\n (i) The agreement is set forth in a written contract that is offered\nseparately from any contract for employment.\n (ii) The agreement does not require the employee to obtain the\ntransferable credential as a condition of employment.\n (iii) The agreement specifies the repayment amount before the employee\nagrees to the contract, and the repayment amount does not exceed the\ncost to the employer of the tuition, fees, and required educational\nmaterials for the transferable credential received by the employee.\n (iv) The agreement provides for a prorated repayment amount during any\nrequired employment period that is proportional to the total repayment\namount and the length of the required employment period and does not\nrequire an accelerated payment schedule if the employee separates from\nthe employment.\n (v) The agreement does not require repayment to the employer by the\nemployee if the employee is terminated, except if the employee is\nterminated for misconduct.\n (b) requires the employee to pay the employer for any property the\nemployer has sold or leased to the employee, as long as such sale or\nlease was voluntary.\n (c) requires the employee to repay a financial bonus, relocation\nassistance, or other non-educational incentive or other payment or\nbenefit that is not tied to specific job performance, unless the\nemployee was terminated for any reason other than misconduct or the\nduties or requirements of the job were misrepresented to the employee.\n (d) requires educational personnel to comply with any terms or\nconditions of sabbatical leaves granted by their employers; or\n (e) is entered into as part of a program agreed to by the employer and\nits employees' collective bargaining representative.\n * NB Effective December 19, 2026\n