KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** Recouping expenses paid to employees or training February 6, 2026 **************************** Recouping expenses paid to employees or training ***************************** Pretty aggravating when you invest in an employee that ups and leaves before providing any quid pro quo. You may be able to require the employee to repay the expense, but not all expenses, and it may depend where you are located. New York as a new law, and if New York has it then anticipate similar law in your jurisdiction soon, especially in the "blue states". K&K's Employment Department, managed by Jennifer Kirschenbaum, Esq, sends out an informative newsletter [you can sign upon the K&K website]. Here is her article on topic that I thought you should read: *********************** Question: ************************** Jennifer, Am I allowed to condition payment during training on the employee staying at least 6 months? Thanks in advance. Dr. K ************************* Response ************************** Nope. Not any more. Retention or training advances are now outlawed in New York. New legislation signed at the end of the year by Governor Hochul, the Trapped at Work Act (the “Act”), effective immediately as of December 19, 2025, prohibits employers from requiring employees to repay certain advances/retention mechanisms. https://www.nysenate.gov/legislation/bills/2025/A584/amendment/C Specifically, the new law restricts employers from requiring an employee to repay money advanced should the employee not stay a certain period of time (a signing bonus repayment obligation), or an advance related to training. Now, the Act does address employees may still repay monies loaned to employees unrelated to work. What happens if you don't comply: The Commissioner of the New York State Department of Labor has the authority to impose fines on employers who violate the Act. Fines can range anywhere from $1,000 to $5,000 dollars for each violation, and each employee required to sign such an agreement constitutes a separate violation. Although the law does not grant employees a private right of action, if they successfully defend a lawsuit for enforcement of an Employment Promissory Note they can recover their attorney’s fees. https://www.nysenate.gov/legislation/bills/2025/A584/amendment/C **************** For assistance reviewing your employment agreements to ensure compliance with the Act, contact Jennifer Kirschenbaum at Jennifer@kirschenbaumesq.com or (516)747-6700 ext. 302 ***************** Interested in having Jennifer speak at an event or program? Contact Jennifer directly at (516) 747-6700 x. 302 or at Jennifer@Kirschenbaumesq.com ***************** NOTE: Jennifer is also available to Concierge Clients for a free half hour consult on Employment and Labor Law issues, and alarm issues too. ***************** STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
