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