Stay or Pay Laws

Every stay-or-pay law, by date

The laws, bills and rulings on stay-or-pay clauses, newest first, with what is coming.

Updated

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What has happened

  1. New York's Department of Labor publishes guidance: the Trapped at Work Act starts on December 19, 2026. Seyfarth.

  2. Connecticut's ban covers every employer. The same day, New Jersey's S2105 clears the Senate Labor Committee 3-2. Connecticut General Assembly.

  3. California signs AB 1697 as an urgency law: its ban now covers only contracts signed from January 1, 2027, and 2026 claims are cancelled. California Legislative Information.

  4. Connecticut approves Public Act 26-12, extending its ban on employment promissory notes to every employer from October 1, 2026. Connecticut General Assembly.

  5. New York's chapter amendment is signed: the law is delayed a year, limited to employees, and gains exceptions for transferable credentials, bonuses and relocation. New York State Senate.

  6. New York signs the Trapped at Work Act. New York State Senate.

  7. Colorado's Attorney General and PetSmart settle over groomer training repayment agreements: PetSmart ends them and pays $225,000. Colorado Attorney General.

  8. California signs AB 692, a ban on stay-or-pay terms, then due to start on January 1, 2026. California Legislative Information.

  9. The FTC drops its appeals and accepts that its nationwide noncompete rule, set aside by a Texas court on August 20, 2024, is dead. FTC.

  10. Wyoming adopts SF0107: most noncompetes void from July 1, 2025, and relocation, education and training clawbacks capped by years served. Wyoming Legislature.

  11. Colorado tightens its rule (HB 24-1324): the Attorney General can recover three times what an employer collected, and a training debt counts as consumer credit. Colorado General Assembly.

  12. The CFPB publishes its report on training repayment agreements and other employer-driven debt. CFPB.

  13. Colorado's limits start: training repayment only for reasonable costs, shrinking month by month over two years (HB 22-1317, signed June 8, 2022). Colorado General Assembly.

  14. The Consumer Financial Protection Bureau opens an inquiry into "employer-driven debt", including training repayment agreements. CFPB.