summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill prohibits an employer from requiring, as a condition of employment, any employee or prospective employee to enter into training repayment agreement. The bill stipulates that any agreement which is a training repayment agreement is void and that no employee is obligated to make payments under that agreement. The bill defines a training repayment agreement as any agreement requiring an employee to pay an employer, or a training provider or other third party, a sum of money if the employee leaves employment with the employer, including any agreement requiring the employee to reimburse the employer or third party for training previously provided to the employee, except that a training repayment agreement does not include a cash advance to an employee, a payment for equipment sold or leased to an employee, an educational sabbatical leave contract, or a training repayment agreement entered into as part of a collective bargaining agreement.
AI Summary
This bill prohibits employers from requiring employees or job applicants to sign agreements that obligate them to repay the cost of training if they leave their job; such agreements, defined as "training repayment agreements," will be considered void and unenforceable, meaning employees won't have to pay back any training costs under them. However, this prohibition does not apply to cash advances, payments for equipment, educational sabbatical leave contracts, or training repayment agreements that are part of a union contract. Violating this bill will be treated as a violation of a specific New Jersey law concerning wages and hours (P.L.1965, c.173), carrying similar penalties and allowing employees to take civil action, and employers will also face penalties for retaliating against employees who refuse to sign these agreements or who complain about them.
Committee Categories
Labor and Employment
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Labor Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S2105 |
| BillText | https://pub.njleg.gov/Bills/2026/S2500/2105_I1.HTM |
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