New York Bans Employers From Clawing Back Worker Training Costs

Businesses in New York cannot require employees to repay job training expenses if they leave their jobs, under legislation Gov. Kathy Hochul (D) signed into law.

The bill (A 584 / S 4070) prohibits employers from requiring workers to sign contracts that stipulate they’ll owe the employer money if they quit within a certain timeframe, which the legislation called “employment promissory notes”. The new law took effect immediately following Hochul’s signing Friday and includes a few exceptions such as repaying the employer for property sold or leased to the employee.

State legislators agreed with Hochul to revise the law ...