N.Y. Labor Law Section 1052
Prohibiting the use of employment promissory notes and other similar provisions

1.

Beginning on the effective date of this article, no employer may require, as a condition of employment, any worker or prospective worker to execute an employment promissory note. The execution of an employment promissory note as a condition of employment is unconscionable, against public policy, and unenforceable, and any such note shall be null and void. If any such note is part of a larger agreement, the invalidity of such note shall not affect the other provisions of such agreement.

2.

Nothing in this section shall prohibit or render void or unenforceable any agreement between a worker and an employer that:

(a)

requires the worker to repay to the employer any sums advanced to such worker by the employer, unless such sums were used to pay for training related to the worker’s employment with the employer;

(b)

requires the worker to pay the employer for any property it has sold or leased to such worker;

(c)

requires educational personnel to comply with any terms or conditions of sabbatical leaves granted by their employers; or

(d)

is entered into as part of a program agreed to by the employer and its workers’ collective bargaining representative.

Source: Section 1052 — Prohibiting the use of employment promissory notes and other similar provisions, https://www.­nysenate.­gov/legislation/laws/LAB/1052 (updated Dec. 26, 2025; accessed Jan. 24, 2026).

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Verified:
Jan. 24, 2026

Last modified:
Dec. 26, 2025

§ 1052. Prohibiting the use of employment promissory notes & other similar provisions's source at nysenate​.gov

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