Albany, NY – Legislation sponsored by Assemblymember Phil Steck to protect New Yorkers from predatory Training Repayment Agreement Provisions, known as TRAPs, has officially become law. The new statute ends the use of contract provisions that force workers to repay exorbitant so-called training costs if they leave a job, even when little or no meaningful training is provided.

TRAPs have increasingly been used by employers to trap workers in low paying or substandard working conditions by threatening them with thousands of dollars in repayment obligations. These provisions often function as de facto noncompete agreements, limiting worker mobility and suppressing wages.

“This legislation became law because a constituent trusted me with her story and because it was clear that what was happening to her was wrong,” said Assemblymember Phil Steck. “No worker should be trapped in a job by employer created debt disguised as training. These practices undermine basic fairness, violate the spirit of our labor laws, and disproportionately harm women and young workers. With this law, New York is saying clearly that predatory employment contracts have no place in our state.”

The issue was first brought to Assemblymember Steck’s attention by a constituent who had worked at a salon for a low hourly wage and was required to sign a contract obligating her to repay thousands of dollars if she left before a set period of time. The alleged training consisted primarily of routine job duties rather than paid or transferable instruction. When she left an unhealthy work environment, she was sued for the cost of the so-called training.

“We are so moved and grateful that Assemblymember Phil Steck took the time to listen to us and then took action to help with our situation,” said Trish D’Allaird, the constituent whose experience helped inspire the legislation. “I went to work at a salon after holding a cosmetology license for 20 years and had to sign a training reimbursement agreement just to get the job. I did not think much of it at the time, but after a few months, I realized I was receiving no real training at all. When I tried to leave, I was told I would owe more money than I had earned. This law is going to prevent this predatory practice from trapping people in jobs they do not want. Many thanks to Phil Steck and his staff for their amazing support. He is a true public servant.”

The TRAPS law clearly defines and prohibits contract terms that create employer driven debt, bars their enforcement in New York courts, and empowers workers to enforce their rights. The legislation was supported by worker advocates and labor organizations across the state, including the Student Borrower Protection Center and the New York State Nurses Association, both of which have warned that TRAPs are increasingly common across industries.

The legislation received strong bipartisan support, passing unanimously in the Assembly Labor Committee and unanimously on the Assembly floor.

Assemblymember Steck emphasized that the new law reflects New York’s long-standing commitment to protecting workers from exploitation and ensuring that employment practices remain fair, transparent, and lawful.

“This law reaffirms our obligation to stand with working people,” Steck said. “Economic freedom means being able to leave a job without fear of financial punishment. New York is leading the way.”