HF2567
Stay-or-pay provisions prohibited, made unenforceable, and made against public policy.
Legislative Session 94 (2025-2026)
Related bill: SF2533
AI Generated Summary
Purpose of the Bill
This bill aims to amend existing employment law in Minnesota by making certain practices, specifically "stay-or-pay" provisions, illegal and unenforceable. It establishes these practices as contrary to public policy.
Main Provisions
- Prohibition of Stay-or-Pay Provisions: The bill specifically addresses and prohibits "stay-or-pay" provisions within employment contracts. These provisions typically require employees to either remain with a company for a designated period or pay a penalty for leaving early.
- Unenforceability: Any employment contract including "stay-or-pay" clauses will be considered unenforceable, meaning that such provisions will have no legal effect and cannot be upheld in court.
Significant Changes to Existing Law
- Revision of Compliance Orders: The bill amends Minnesota Statutes 2024 section 177.27, subdivision 4, enhancing the authority of the Commissioner of Labor to issue compliance orders against employers who violate labor statutes, including the newly added prohibition of "stay-or-pay" provisions.
- Legal Clarification: The modification aligns with broader labor policy by explicitly banning practices that can be deemed coercive or restrictive of employee mobility.
Relevant Terms
- Employment
- Stay-or-pay provisions
- Unenforceable contracts
- Labor law
- Compliance orders
- Employee mobility
Past committee meetings
You must be logged in to view 1 past legislative committee meetings.
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 20, 2025 | House | Action | Introduction and first reading, referred to | Workforce, Labor, and Economic Development Finance and Policy | |
| March 24, 2025 | House | Action | Author added | ||
| Showing the 5 most recent stages. This bill has 2 stages in total. Log in to view all stages | |||||
Meeting documents
You must be logged in to view legislative committee meeting documents.
Citations
You must be logged in to view citations.
Progress through the legislative process
In Committee
Sponsors
You must be logged in to view sponsors.