Bill > HF2567

This bill establishes new protections for employees by prohibiting "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. Specifically, the bill defines stay-or-pay provisions as contract clauses that mandate employee reimbursement for training, recruitment, replacement costs, lost revenue, or liquidated damages if an employee departs before a certain date. The legislation declares such provisions unconscionable and against public policy, making it illegal for employers to present, require, enforce, or threaten to enforce these provisions. Employers found in violation can be fined between $1,000 and $5,000 per violation, and employees have the right to bring civil actions seeking injunctive relief, actual damages, an additional $5,000 per violation, and attorney fees. Each instance of presenting, requiring, enforcing, or threatening to enforce a stay-or-pay provision constitutes a separate violation. The bill will take effect on July 1, 2025, and will apply to contracts and agreements entered into on or after that date, ensuring that employees have greater freedom to change jobs without facing financial penalties.

Labor and Employment

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2567&ssn=0&y=2025