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Labor/Employment

Feb. 7, 2024

Navigating ‘stay or pay’ clauses

The use of stay or pay clauses may decline in the future due to increased regulatory scrutiny. Until then, employees should be aware of such clauses in their employment contract.

Matthew J. Matern

Founding Attorney , Matern Law Group PC

1230 Rosecrans Ave
Manhattan Beach , CA 90266

Phone: (310) 531-1900

Email: mmatern@maternlawgroup.com

Southwestern Univ SOL; Los Angeles CA

Rebecca Liu

Associate Attorney , Matern Law Group

The use of "stay or pay" clauses in employment agreements is on the rise for many different jobs and industries, but these clauses are now facing heightened scrutiny because of their negative impact and unique harms on employees.

What are "stay or pay" clauses?

Stay or pay clauses occur when an employment agreement specifies that an employ...

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