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Subcommittee approves ban on coercive 'stay-or-pay' contracts with exemptions for tuition repayment
Virginia House Subcommittee (Labor and Commerce) · January 30, 2026
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Summary
HB923 would prohibit employers from enforcing coercive stay-or-pay contracts that require large repayments for leaving employment; amendments create exemptions for bona fide tuition- or credentialing-repayment agreements and lower statutory penalties to $1,000; passed 5-1.
Chair Lopez presented House Bill 923, which would prohibit employers from enforcing "stay-or-pay" repayment contracts that can require employees to reimburse employers for training or hiring costs when they leave.
The subcommittee adopted two…
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