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Wednesday, July 9, 2025

Uptick in 'Stay-or-Pay' Employment Contracts Poised For Courtroom Tests - Law.com

Defense lawyers must feel uneasy when their client’s business model is likened to “indentured servitude.”

So-called “stay-or-pay” employment contracts are nothing new, but they appear to be experiencing a resurgence as employers seek to hold on to staff in a period of growing mobility in the workplace. Workers around the country are filing more suits challenging work contracts requiring them to pay up if they fail to stay on the job for a set period. And those suits are taking on a higher profile.

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