Labor Law 1053 — Legislation
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SECTION 1052
Prohibiting the use of employment promissory notes and other similar provisions
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ARTICLE 37
Trapped At Work Act
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SECTION 1054
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SECTION 1053
Enforcement
Labor (LAB) CHAPTER 31, ARTICLE 37
* § 1053. Enforcement. 1. Notwithstanding any other provision of law,
an employee who is sued by an employer seeking to enforce the provisions
of a promissory note made null and void by this article shall be able to
recover attorney's fees upon a successful defense.
2. An employee or prospective employee who is aggrieved by a violation
of this article may file a complaint with the commissioner. Any employer
determined by the commissioner to have violated this article shall be
fined by the commissioner not less than one thousand dollars and not
more than five thousand dollars for each violation. In assessing the
amount of the penalty, the commissioner shall give due consideration to
the size of the employer's business, the good faith basis of the
employer to believe that its conduct was in compliance with the law, the
gravity of the violation, and the history of previous violations. Each
employee or prospective employee whom an employer required to execute an
employment promissory note or against whom an employer seeks to enforce
such a note shall constitute a separate violation of this article.
* NB Effective December 19, 2026