HB 421 — 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
 1   Protecting workers from training repayment agreement provisions;
 2      conferring powers and imposing duties on the Department of
 3      Labor and Industry; and imposing penalties.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6   Section 1.   Short title.
 7      This act shall be known and may be cited as the Protect
 8   Workers from Training Repayment Agreement Provisions Act.
 9   Section 2.   Definitions.
10      The following words and phrases when used in this act shall
11   have the meanings given to them in this section unless the
12   context clearly indicates otherwise:
13      "Department."    The Department of Labor and Industry of the
14   Commonwealth.
15      "Employee."    An individual employed by an employer.
16      "Employer."    As follows:
17          (1)   As defined in section 3(g) of the act of January 17,
 1      1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968.
 2            (2)   The term does not include a governmental or quasi-
 3      governmental body.
 4      "Training repayment agreement."      As follows:
 5            (1)   An agreement requiring an employee to pay an
 6      employer, or a training provider or other third party, a sum
 7      of money if the employee voluntarily or involuntarily leaves
 8      employment with the employer, including an agreement
 9      requiring the employee to reimburse the employer, training
10      provider or other third party for training previously
11      provided to the employee.
12            (2)   The term does not include a cash advance to an
13      employee, a payment for equipment sold or leased to an
14      employee, an educational sabbatical leave contract or a
15      training repayment agreement entered into as part of a
16      collective bargaining agreement.
17   Section 3.     Training repayment agreement.
18      (a)   Prohibition.--An employer may not require, as a
19   condition of employment, an employee or prospective employee to
20   enter into a training repayment agreement.
21      (b)   Effect.--A training repayment agreement involving an
22   employee is void, and the employee shall not be obligated to
23   make any payment under the training repayment agreement.
24   Section 4.     Enforcement.
25      The department shall enforce this act and may conduct
26   investigations as it deems necessary for enforcement.
27   Section 5.     Penalties.
28      (a)   Civil penalty for violation.--An employer found to be in
29   violation of any provision of this act is subject to a civil
30   penalty of not more than $25,000 for each violation.

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1      (b)   Subsequent violation.--For each subsequent violation of
2   any provision of this act, an employer is subject to an
3   additional civil penalty of $25,000 per employee.
4   Section 6.   Applicability.
5      This act shall apply to a training repayment agreement
6   entered into on or after the effective date of this section.
7   Section 7.   Effective date.
8      This act shall take effect in 60 days.




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