Webinar

Stay-or-pay under fire: What employers need to know in 2026

26 February 2026 | 12:00 p.m. - 1:00 p.m. (PST)

United States

Recent legislative changes in California, New York, and other states have significantly restricted or abolished the use of “stay-or-pay” clauses, which typically require employees to reimburse employers for sign-on bonuses, relocation expenses, training, or other payments if employment ends before a specified period. These reforms reflect a broader policy shift toward protecting worker mobility and limiting contractual provisions that may deter employees from changing jobs.

These developments have a significant impact on how companies should structure employment agreements and retention agreements, particularly in M&A transactions. It is essential for employers to understand and adapt to these changes to mitigate risk and foster a more attractive, competitive workplace for current and prospective talent.

Join us on February 26 for a webinar covering:

the recently enacted California Assembly Bill 692;
similar legislation in New York, the Trapped At Work Act;
other state developments restricting stay-or-pay provisions;
certain considerations under Section 409A of the Internal Revenue Code raised by these statutes;
implications for employment and M&A retention strategies; and
how employers should respond to minimize legal and reputational risk.

Register here