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PA HB421

PA HB421
Protecting workers from training repayment agreement provisions; conferring powers and imposing duties on the Department of Labor and Industry; and imposing penalties.


summary

Introduced
01/30/2025
In Committee
01/30/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Protecting workers from training repayment agreement provisions; conferring powers and imposing duties on the Department of Labor and Industry; and imposing penalties.

AI Summary

This bill, known as the Protect Workers from Training Repayment Agreement Provisions Act, aims to protect employees from potentially exploitative training repayment agreements. The bill defines a training repayment agreement as a contract that requires an employee to reimburse an employer for training costs if they leave their job, with some exceptions like collective bargaining agreements or equipment leases. The legislation prohibits employers from requiring employees or job applicants to enter into such agreements as a condition of employment, and declares any existing training repayment agreements void, meaning employees cannot be compelled to make payments under these contracts. The Pennsylvania Department of Labor and Industry is tasked with enforcing the law and conducting investigations as needed. Employers found in violation can face significant civil penalties, including up to $25,000 for each initial violation and an additional $25,000 per employee for subsequent violations. The law will apply to training repayment agreements entered into on or after its effective date, which is 60 days after passage. The bill's primary goal is to prevent employers from using training repayment agreements as a mechanism to restrict employee mobility or create financial burdens for workers seeking new employment opportunities.

Committee Categories

Labor and Employment

Sponsors (19)

Last Action

Referred to Labor & Industry (on 01/30/2025)

bill text


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