Bill > SF2533

This bill prohibits "stay-or-pay" provisions in employment contracts, which are agreements that require employees to pay their employer a sum of money if they leave their job before a specified period of time. The bill defines stay-or-pay provisions broadly, including agreements that seek reimbursement for training, recruitment, replacement costs, or other liquidated damages. Under the proposed law, such provisions are considered unconscionable and against public policy, meaning employers cannot present, require, enforce, or threaten to enforce these provisions as a condition of employment. If an employer violates this prohibition, they can be fined between $1,000 and $5,000 per violation, with each instance of presenting or attempting to enforce such a provision counting as a separate violation. Employees who are subjected to these provisions can bring a civil action in district court, potentially receiving injunctive relief, actual damages, an additional $5,000 per violation, and attorney fees. The bill specifies that these protections are in addition to existing legal rights and will become effective on July 1, 2025, applying to contracts and agreements entered into on or after that date. The legislation aims to prevent employers from financially penalizing employees who choose to leave their jobs.

Labor and Employment

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