Paying back tuition reimbursement

The new laws leave room for tuition repayment when the course is yours to take elsewhere, on strict conditions.

Updated November 8, 2026

Tuition is the one kind of stay-or-pay clause the new laws were written to allow, as long as what you studied is useful beyond this employer and the deal is fair.

State	Tuition or a course you chose	From
California	Only with conditions	January 1, 2027
Colorado	Only with conditions	August 10, 2022
Connecticut	Not settled	October 1, 2026
Minnesota	Not covered	Any date
New York	Only with conditions	December 19, 2026
Wyoming	Only with conditions	July 1, 2025

Every other state: no stay-or-pay law, so the contract decides.

The conditions

New York and California both require a separate agreement, a course your job doesn't require, an amount stated up front and no more than the employer paid, a balance that goes down over the period with no lump sum, and nothing owed if you're let go except for misconduct. The difference is what counts. California only allows a degree from an accredited school. New York allows a degree, diploma, license, certificate or skill that is widely recognised, but not training specific to the employer, or required safety and compliance training (New York State Department of Labor).

Colorado treats education like training: reasonable costs only, going down over two years. Wyoming's caps apply too.

Check your tuition agreement

Start with the date on your contract.

State When did you sign? What do they want back?

Only with conditions

In New York, a clause asking you to repay tuition for leaving only holds if it meets every condition below.

It pays for a widely recognised degree, license, certificate or skill your job does not require (training specific to this employer, and required safety or compliance training, do not count).
It is in a separate written agreement, and the credential is not a condition of your job.
The amount was stated before you agreed, and is no more than what the employer actually paid.
What you owe goes down over the required period, with no lump sum if you leave.
You owe nothing if you are let go, unless it is for misconduct.

Everything on New York

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

Trapped at Work Act, New York State Department of Labor, read November 8, 2026.
AB 1697, chaptered text (Chapter 889, Statutes of 2026), California Legislative Information, read November 8, 2026.
HB 22-1317, Restrictive Employment Agreements, Colorado General Assembly, read November 8, 2026.
SF0107, enrolled act, Wyoming Legislature, read November 8, 2026.