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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0203*
HOUSE BILL 203
K3 6lr0867
(PRE–FILED)
By: Delegate Vogel
Requested: September 17, 2025
Introduced and read first time: January 14, 2026
Assigned to: Government, Labor, and Elections
A BILL ENTITLED
AN ACT concerning 1
Labor and Employment – Training Repayment Agreements – Prohibition 2
FOR the purpose of prohibiting employers from requiring, as a condition of employment, 3
employees or prospective employees to enter into training repayment agreements; 4
providing that an agreement that constitutes a training repayment agreement is null 5
and void as being against the public policy of the State; and generally relating to 6
training repayment agreements. 7
BY repealing and reenacting, without amendments, 8
Article – Labor and Employment 9
Section 3–103(a) 10
Annotated Code of Maryland 11
(2025 Replacement Volume) 12
BY adding to 13
Article – Labor and Employment 14
Section 3–103(e)(7) and 3–718 15
Annotated Code of Maryland 16
(2025 Replacement Volume) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Labor and Employment 20
3–103. 21
(a) Except as otherwise provided in this section, the Commissioner may conduct 22
an investigation to determine whether a provision of this title has been violated on the 23
Commissioner’s own initiative or may require a written complaint. 24
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(e) (7) THE COMMISSIONER MAY INVE STIGATE WHETHER § 3–718 OF 1
THIS TITLE HAS BEEN VIOLATED ON RECEIPT O F A WRITTEN COMPLAINT OF AN 2
EMPLOYEE. 3
3–718. 4
(A) (1) IN THIS SECTION , “TRAINING REPAYMENT AG REEMENT” MEANS 5
AN AGREEMENT THAT REQUIRES AN EMPLOYEE TO PAY AN EMPLOYER OR A THIRD 6
PARTY, SUCH AS A TRAINING P ROVIDER, A SUM OF MONEY IF TH E EMPLOYEE 7
VOLUNTARILY OR INVOLUNTARILY LEAVES EMPLOYMENT WITH THE EMPLOYER. 8
(2) “TRAINING REPAYMENT AGREEMENT” INCLUDES AN AGREEMENT 9
THAT REQUIRES THE EMPLOYEE TO REIM BURSE THE EMPLOYER O R THIRD PARTY 10
FOR TRAINING PREVIOUSLY PROVIDED TO THE EMPLOYEE. 11
(3) “TRAINING REPAYMENT AGREEMENT” DOES NOT INCLUDE: 12
(I) A CASH ADVANCE TO AN EMPLOYEE; 13
(II) A PAYMENT FOR EQUIPM ENT SOLD OR LEASED T O AN 14
EMPLOYEE; 15
(III) AN EDUCATIONAL SABBATICAL LEAVE CONTRACT; OR 16
(IV) AN AGREEMENT DESCRIBED IN PARAGRAPH (1) OF THIS 17
SUBSECTION ENTERED INTO AS PART OF A COLLECTIVE BARGAINING AGREEMENT. 18
(B) (1) AN EMPLOYER MAY NOT R EQUIRE AS A CONDITIO N OF 19
EMPLOYMENT AN EMPLOY EE OR PROSPECTIVE EM PLOYEE TO ENTER INTO A 20
TRAINING REPAYMENT AGREEMENT. 21
(2) AN AGREEMENT THAT CONSTITUTES A TRAINING REPAYMENT 22
AGREEMENT IS NULL AND VOID AS BEI NG AGAINST THE PUBLI C POLICY OF THE 23
STATE. 24
(C) IF AN EMPLOYEE OR A P ROSPECTIVE EMPLOYEE BELIEVES THAT AN 25
EMPLOYER HAS VIOLATED SUBSECTION (B)(1) OF THIS SECTION, THE EMPLOYEE OR 26
PROSPECTIVE EMPLOYEE MAY: 27
(1) FILE A WRITTEN COMPLAINT WITH THE COMMISSIONER; OR 28
(2) BRING A CIVIL ACTION FOR ECONOMIC DAMAGES. 29
HOUSE BILL 203 3
(D) (1) IF THE COMMISSIONER DETERMIN ES THAT A N EMPLOYER 1
KNOWINGLY VIOLATED SUBSECTION (B)(1) OF THIS SECTION, THE COMMISSIONER 2
SHALL ASSESS A CIVIL PENALTY OF: 3
(I) FOR THE FIRST VIOLATION, UP TO $10,000; 4
(II) FOR THE SECOND VIOLATION, UP TO $20,000; AND 5
(III) FOR EACH SUBSEQUENT VIOLATION, UP TO $20,000 FOR 6
EACH EMPLOYEE FOR WHOM THE EMPLOYER IS NOT IN COMPLIANCE. 7
(2) IN DETERMINING THE AM OUNT OF THE PENALTY UNDER 8
PARAGRAPH (1) OF THIS SUBSECTION, THE COMMISSIONER SHALL CONSIDER: 9
(I) THE GRAVITY OF THE VIOLATION; 10
(II) THE SIZE OF THE EMPLOYER’S BUSINESS; 11
(III) THE EMPLOYER’S GOOD FAITH; AND 12
(IV) THE EMPLOYER ’S HISTORY OF VIOLATI ONS UNDER THIS 13
SECTION. 14
(3) IF THE COMMISSIONER ASSESSES A PENALTY UNDER PARAGRAPH 15
(1) OF THIS SUBSECTION , THE PENALTY SHALL BE SUBJECT TO THE NOTIC E AND 16
HEARING REQUIREMENTS OF TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT 17
ARTICLE. 18
(E) IF A COURT IN AN ACTION FILED U NDER SUBSECTION (C)(2) OF THIS 19
SECTION DETERMINES THAT AN I NDIVIDUAL OR A CLASS OF INDIVIDUALS IS 20
ENTITLED TO RESTITUT ION AS A RESULT OF T HE EMPLOYER ’S VIOLATION OF 21
SUBSECTION (B)(1) OF THIS SECTION, THE COURT: 22
(1) SHALL AWARD EACH IND IVIDUAL ANY RESTITUT ION TO WHICH 23
THE INDIVIDUAL MAY BE ENTITLED; AND 24
(2) MAY AWARD EACH INDIV IDUAL AN ADDITIONAL AMOUNT UP TO 25
THREE TIMES THE AMOUNT OF THE RESTITUTION AWARDED. 26
(F) A PENALTY ISSUED OR RESTITUTION ORDER ED UNDER THIS SECTION 27
AGAINST AN EMPLOYER SHALL BE IN EFFECT A GAINST ANY SUCCESSOR BUSINESS 28
ENTITY THAT: 29
4 HOUSE BILL 203
(1) HAS ONE OR MORE OF THE SAME PRINCIPALS OR OFFICERS AS THE 1
EMPLOYER AGAINST WHOM THE PENALTY WAS AS SESSED, UNLESS THE PRINCIPAL 2
OR OFFICER DID NOT O R WITH THE EXERCISE OF REASONABLE DILIGENCE COULD 3
NOT KNOW OF THE VIOLATION FOR WHICH THE PENALTY WAS IMPOSED; AND 4
(2) IS ENGAGED IN THE SAME OR EQUIVALENT TRADE OR ACTIVITY. 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 6
October 1, 2026. 7