Bill > SF2533

This bill, effective July 1, 2026, prohibits and declares unenforceable "stay-or-pay provisions" in employment contracts, which are defined as agreements requiring an employee to pay their employer money if they leave their job before a certain time, often framed as reimbursement for training or other costs. The bill makes it illegal for employers to present, require, or enforce such provisions, with violations resulting in fines of $1,000 to $5,000 per violation, payable to the aggrieved employee. An exception exists for agreements to repay the cost of tuition for transferable credentials, provided they are separate from employment contracts, do not make obtaining the credential a condition of employment, clearly state repayment amounts, offer prorated repayment, and do not require repayment if the employee is terminated except for misconduct. The bill also prevents employers from requiring Minnesota-based employees to adjudicate claims outside of Minnesota or waive Minnesota law protections, and allows employees to bring civil actions for violations, potentially recovering damages, penalties, and attorney fees.

Justice, Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2533&ssn=0&y=2025