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Pennsylvania Bans Training Repayment Agreements and Imposes $25,000 Penalties on Employers

Original title: An Act protecting workers from training repayment agreement provisions; conferring powers and imposing duties on the Department of Labor and Industry; and imposing penalties.

Last action · January 30, 2025: Referred to LABOR AND INDUSTRY, Jan. 30, 2025Sponsors: Tarik Khan and 18 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Pennsylvania House Bill 421 prohibits employers from requiring employees or prospective employees to enter into s as a condition of employment. Under the measure, such agreements are rendered void, and employers face civil penalties of up to $25,000 per violation.

Why it matters

Workers are relieved of any financial obligation to reimburse employers for training if they leave their jobs, while non-compliant employers face significant financial penalties enforced by the Department of Labor and Industry.

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Employees

Directly affected

Employers

Employers are prohibited from conditioning employment on training repayment agreements and face civil penalties of up to $25,000 per violation.

Directly affected

Department of Labor and Industry

The department is granted powers and duties to enforce the act and conduct investigations.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What is a training repayment agreement under this bill?
It is an agreement requiring an employee to pay an employer, training provider, or third party money if the employee leaves employment, including reimbursement for previous training.
Are all training repayment agreements banned?
No. The ban does not apply to cash advances, payments for equipment sold or leased to an employee, educational sabbatical leave contracts, or agreements entered into as part of a collective bargaining agreement.
What happens to existing training repayment agreements?
The act applies to s entered into on or after the effective date of the section, rendering them void.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Jan 30, 2025HouseCommittee
    Referred to LABOR AND INDUSTRY, Jan. 30, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Connected Entities

Department of Labor and Industry
OrganizationDepartment of Labor and Industry“Enforces the act and conducts investigations”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100
  • Significance65
    How much this matters to a regular citizen
  • Controversy50
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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