New Jersey has a stay-or-pay bill, not a law

S2105 would limit training repayment agreements in New Jersey. Until it passes, your contract decides.

Bill being debated S2105 passed a Senate committee on October 1, 2026.

New Jersey has no stay-or-pay law yet. Its bill has gone further than any other pending one: it cleared the Senate Labor Committee 3-2 on October 1, 2026.

The bill

  • S2105: Would prohibit training repayment agreements. Reported 3-2 by the Senate Labor Committee on October 1, 2026, then sent to Senate Budget and Appropriations. Assembly version: A4639.

Until then

With no state law, a repayment clause is judged as an ordinary contract term. Courts in states without a law have enforced some and thrown out others, often over whether the amount was a fair estimate of a real cost or a penalty for leaving. Federal law still sets a floor: whatever your employer takes back can't push your last week's pay below the federal minimum wage (the FLSA "free and clear" rule). What protects you in a state with no law.

Check your New Jersey contract

Start with the date on your contract.

No state law

New Jersey has no law against stay-or-pay clauses yet, so whether you owe training costs depends on your contract and ordinary contract law. A bill (S2105) would change that if it passes.

Everything on New Jersey

This is general information, not legal advice. For your own contract, a lawyer or your state's labor department can tell you where you stand.

Sources

  1. S2105, prohibits training repayment agreements, LegiScan, read November 8, 2026.
  2. 29 CFR § 531.35, "free and clear" payment; "kick-backs", Cornell Legal Information Institute, read November 8, 2026.