Stay-or-pay laws, state by state

Which states ban or limit clauses that make you repay training, a bonus or relocation money when you leave. Checked November 8, 2026.

Five states have a law that bans or limits stay-or-pay clauses: Colorado, Connecticut and Wyoming now, New York from December 19, 2026 and California for contracts signed from January 1, 2027. Minnesota has an older rule that stops employers charging for training the job requires. New Jersey, Pennsylvania and Illinois have bills. Everywhere else, the contract and ordinary contract law decide, with a federal floor on what can come out of your pay.

StateWhere it standsIn short
Alabama No stay-or-pay law No stay-or-pay law
Alaska No stay-or-pay law No stay-or-pay law
Arizona No stay-or-pay law No stay-or-pay law
Arkansas No stay-or-pay law No stay-or-pay law
California Law coming Contracts signed from January 1, 2027
Colorado Law in force Limits since August 10, 2022
Connecticut Law in force All employers from October 1, 2026
Delaware No stay-or-pay law No stay-or-pay law
District of Columbia No stay-or-pay law No stay-or-pay law
Florida No stay-or-pay law No stay-or-pay law
Georgia No stay-or-pay law No stay-or-pay law
Hawaii No stay-or-pay law No stay-or-pay law
Idaho No stay-or-pay law No stay-or-pay law
Illinois Bill being debated HB 5461 waiting in the Rules Committee
Indiana No stay-or-pay law No stay-or-pay law
Iowa No stay-or-pay law No stay-or-pay law
Kansas No stay-or-pay law No stay-or-pay law
Kentucky No stay-or-pay law No stay-or-pay law
Louisiana No stay-or-pay law No stay-or-pay law
Maine No stay-or-pay law No stay-or-pay law
Maryland No stay-or-pay law No stay-or-pay law
Massachusetts No stay-or-pay law No stay-or-pay law
Michigan No stay-or-pay law No stay-or-pay law
Minnesota Partly covered Can't charge for training the job requires
Mississippi No stay-or-pay law No stay-or-pay law
Missouri No stay-or-pay law No stay-or-pay law
Montana No stay-or-pay law No stay-or-pay law
Nebraska No stay-or-pay law No stay-or-pay law
Nevada No stay-or-pay law No stay-or-pay law
New Hampshire No stay-or-pay law No stay-or-pay law
New Jersey Bill being debated S2105 passed a Senate committee on October 1, 2026
New Mexico No stay-or-pay law No stay-or-pay law
New York Law coming From December 19, 2026
North Carolina No stay-or-pay law No stay-or-pay law
North Dakota No stay-or-pay law No stay-or-pay law
Ohio No stay-or-pay law No stay-or-pay law
Oklahoma No stay-or-pay law No stay-or-pay law
Oregon No stay-or-pay law No stay-or-pay law
Pennsylvania Bill being debated HB 421 in committee since January 2025
Rhode Island No stay-or-pay law No stay-or-pay law
South Carolina No stay-or-pay law No stay-or-pay law
South Dakota No stay-or-pay law No stay-or-pay law
Tennessee No stay-or-pay law No stay-or-pay law
Texas No stay-or-pay law No stay-or-pay law
Utah No stay-or-pay law No stay-or-pay law
Vermont No stay-or-pay law No stay-or-pay law
Virginia No stay-or-pay law No stay-or-pay law
Washington No stay-or-pay law No stay-or-pay law
West Virginia No stay-or-pay law No stay-or-pay law
Wisconsin No stay-or-pay law No stay-or-pay law
Wyoming Law in force Caps for contracts from July 1, 2025

Each state's page has the law's own words on what is void, the exceptions, and where to complain.

Sources

  1. AB 1697, chaptered text (Chapter 889, Statutes of 2026), California Legislative Information, read November 8, 2026.
  2. Trapped at Work Act, New York State Department of Labor, read November 8, 2026.
  3. Public Act 26-12 (Substitute House Bill 5003), Connecticut General Assembly, May 11, 2026.
  4. HB 22-1317, Restrictive Employment Agreements, Colorado General Assembly, read November 8, 2026.
  5. SF0107, Noncompete agreements (Chapter 170, Session Laws 2025), Wyoming Legislature, read November 8, 2026.
  6. Minn. Stat. § 181.645, employee fees and training, Minnesota Revisor of Statutes, read November 8, 2026.
  7. S2105, prohibits training repayment agreements, LegiScan, read November 8, 2026.
  8. HB 421, training repayment agreement provisions, Pennsylvania General Assembly, read November 8, 2026.
  9. HB 5461, Wage Payment and Collection Act amendment, Illinois General Assembly, read November 8, 2026.