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

PRINTER'S NO. 395
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 421
Session of
2025
INTRODUCED BY KHAN, GREEN, SIEGEL, HADDOCK, MUNROE, POWELL,
RABB, VENKAT, PIELLI, SANCHEZ, HILL-EVANS, GIRAL, FIEDLER,
PARKER, WARREN, FREEMAN, FRANKEL, OTTEN AND KENYATTA,
JANUARY 30, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JANUARY 30, 2025
AN ACT
Protecting workers from training repayment agreement provisions;
conferring powers and imposing duties on the Department of
Labor and Industry; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Protect
Workers from Training Repayment Agreement Provisions Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Labor and Industry of the
Commonwealth.
"Employee." An individual employed by an employer.
"Employer." As follows:
(1) As defined in section 3(g) of the act of January 17,
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1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968.
(2) The term does not include a governmental or quasi-
governmental body.
"Training repayment agreement." As follows:
(1) An agreement requiring an employee to pay an
employer, or a training provider or other third party, a sum
of money if the employee voluntarily or involuntarily leaves
employment with the employer, including an agreement
requiring the employee to reimburse the employer, training
provider or other third party for training previously
provided to the employee.
(2) The term does not include a cash advance to an
employee, a payment for equipment sold or leased to an
employee, an educational sabbatical leave contract or a
training repayment agreement entered into as part of a
collective bargaining agreement.
Section 3. Training repayment agreement.
(a) Prohibition.--An employer may not require, as a
condition of employment, an employee or prospective employee to
enter into a training repayment agreement.
(b) Effect.--A training repayment agreement involving an
employee is void, and the employee shall not be obligated to
make any payment under the training repayment agreement.
Section 4. Enforcement.
The department shall enforce this act and may conduct
investigations as it deems necessary for enforcement.
Section 5. Penalties.
(a) Civil penalty for violation.--An employer found to be in
violation of any provision of this act is subject to a civil
penalty of not more than $25,000 for each violation.
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(b) Subsequent violation.--For each subsequent violation of
any provision of this act, an employer is subject to an
additional civil penalty of $25,000 per employee.
Section 6. Applicability.
This act shall apply to a training repayment agreement
entered into on or after the effective date of this section.
Section 7. Effective date.
This act shall take effect in 60 days.
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