In a state with no stay-or-pay law

Without a state law, a repayment clause is an ordinary contract term, and a court looks at it the way it would any other. A few things still work in your favour.

A penalty isn't a debt

Courts enforce a fixed sum for leaving only if it was a fair estimate of a real loss when you signed. If the amount has little to do with what the training cost, or doesn't go down the longer you stay, it can be struck out as a penalty. That is why many employers now write the amount as the cost of the training and reduce it month by month.

Ask what it really cost

Ask in writing for the costs item by item: who ran the training, how many hours, what it cost per person. Training that was simply learning the job is hard to price as a debt. Keep everything in writing.

Your last paycheck

Federal law says wages must be paid "free and clear". Whatever your employer takes back can't push your pay for that week below the federal minimum wage or cut into overtime you're owed (29 CFR § 531.35). Many states go further and require your written permission for any deduction, so check with your state's labor department before agreeing to anything coming out of your last check.

The states

• Alabama: no stay-or-pay law.
• Alaska: no stay-or-pay law.
• Arizona: no stay-or-pay law.
• Arkansas: no stay-or-pay law.
• Delaware: no stay-or-pay law.
• District of Columbia: no stay-or-pay law.
• Florida: no stay-or-pay law.
• Georgia: no stay-or-pay law.
• Hawaii: no stay-or-pay law.
• Idaho: no stay-or-pay law.
• Indiana: no stay-or-pay law.
• Iowa: no stay-or-pay law.
• Kansas: no stay-or-pay law.
• Kentucky: no stay-or-pay law.
• Louisiana: no stay-or-pay law.
• Maine: no stay-or-pay law. A bill to ban training repayment agreements (LD 741) passed votes in 2023 but was carried over and died in 2024.
• Maryland: no stay-or-pay law. A bill to ban training repayment agreements (HB 203) had a hearing on February 5, 2026 and died when the session ended.
• Massachusetts: no stay-or-pay law.
• Michigan: no stay-or-pay law.
• Mississippi: no stay-or-pay law.
• Missouri: no stay-or-pay law.
• Montana: no stay-or-pay law.
• Nebraska: no stay-or-pay law.
• Nevada: no stay-or-pay law.
• New Hampshire: no stay-or-pay law.
• New Mexico: no stay-or-pay law.
• North Carolina: no stay-or-pay law.
• North Dakota: no stay-or-pay law.
• Ohio: no stay-or-pay law.
• Oklahoma: no stay-or-pay law.
• Oregon: no stay-or-pay law.
• Rhode Island: no stay-or-pay law.
• South Carolina: no stay-or-pay law.
• South Dakota: no stay-or-pay law.
• Tennessee: no stay-or-pay law.
• Texas: no stay-or-pay law.
• Utah: no stay-or-pay law.
• Vermont: no stay-or-pay law.
• Virginia: no stay-or-pay law.
• Washington: no stay-or-pay law.
• West Virginia: no stay-or-pay law.
• Wisconsin: no stay-or-pay law.

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.