All New York and California employers should be aware of some changes that prohibit employers from requiring employees to repay certain amounts in the event they leave employment prior to a set date. These are commonly known as “stay or pay” agreements. Both New York and California recently enacted laws regulating these types of agreements, though the laws currently differ in key ways.
In light of these legal changes, all New York and California employers should review any agreements with employees to ensure compliance with these laws. In particular, California employers should ensure that sign-on bonus terms and tuition repayment provisions are in standalone agreements and meet AB 692’s conditions. Employers should also continue to monitor the proposed amendments to New York’s law.