SF2533 (Legislative Session 94 (2025-2026))
Stay-or-pay provisions prohibition provision and that they are unenforceable, and against public policy
Related bill: HF2567
AI Generated Summary
This Minnesota Senate bill, S.F. No. 2533, aims to prohibit and render unenforceable "stay-or-pay" provisions in employment agreements, declaring them against public policy. Such provisions typically require employees to either remain with an employer for a certain period or reimburse the employer for certain costs if they leave early.
The bill amends Minnesota Statutes 2024, section 177.27, subdivision 4, which grants the state’s labor commissioner the authority to issue compliance orders for violations of employment-related laws. It further proposes a new section in Minnesota Statutes chapter 181 to formalize the prohibition of stay-or-pay provisions.
The legislative language also clarifies that employers must comply with various labor laws and provides a mechanism for enforcement, including employer contestation procedures and applicable penalties for violations.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2025 | House | Floor | Action | Introduction and first reading | |
| March 12, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 12, 2025 | House | Floor | Action | Referred to | Labor |
| March 12, 2025 | Senate | Floor | Action | Referred to | Labor |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill makes changes to compliance order provisions affecting employers under section 177.27, subdivision 4.",
"modified": [
"Updated the list of sections an employer must comply with, including adjustments to the rules governing repeated violations and the procedures for contesting orders."
]
},
"citation": "177.27",
"subdivision": "subdivision 4"
}
]