Calif. Stay-Or-Pay Ban Creates Wage Suit Pathway

Dana Kravetz was featured in Law360 weighing in on California’s new law banning “stay-or-pay” provisions—employment contract clauses that require workers to repay certain costs, such as training expenses or bonuses, if they leave a job before a set period. Dana explained that while the ban effectively ends most of these arrangements, carveouts for tuition payments and retention bonuses remain intact. He also warned that with the law’s private right of action and penalty provisions, employers should brace for increased litigation.