Stay-or-pay provisions prohibited, made unenforceable, and made against public policy.

HF 2567 bans "stay-or-pay" provisions in Minnesota employment contracts, which require employees to pay employers if they leave before a set period (e.g., for training costs or recruitment fees). The bill prohibits employers from including these clauses as a condition of hiring, enforcing them, or threatening to enforce them. Violations carry fines of $1,000-$5,000 per instance, and affected employees can sue for $5,000 per violation plus damages. The law applies to all employment contracts signed on or after July 1, 2025, directly protecting Minnesota workers and holding employers accountable.