Minnesota SF2533 prohibits stay-or-pay provisions in employment contracts.
Minnesota SF2533 declares stay-or-pay provisions in employment contracts unconscionable, against public policy, and unenforceable. Employers cannot require employees or prospective employees to sign such provisions as a condition of employment. The bill defines stay-or-pay provisions as agreements requiring employees to pay employers if they leave before a specified time. Violating employers face fines and potential civil actions from employees. The law takes effect July 1, 2025.
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