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AB 255

Prohibits certain provisions in certain employment contracts or similar agreements. (BDR 53-116)

2025 Regular Session Introduced by Selena La Rue Hatch

Prohibits pay-if-you-leave clauses in private employment contracts with employees or contractors; violators face fines and potential damages.

(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.)
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Bill Summary · AB 255

AB 255 — Summary (employment-contract provisions)

Note on sources: The materials provided include two different measures labeled “AB 255.” This summary focuses on the measure matching the Bill Information title — a statute prohibiting certain pay-if-you-leave provisions in employment contracts (the Nevada bill as introduced). At the end is a brief note identifying a separate California AB 255 (supportive‑recovery housing) that also appears in the documents.

Main purpose

Prohibit private employers from requiring employees or independent contractors to pay sums to the employer (or a designated person) if the worker leaves or stops providing services before a specified period — regardless of how the charge is labeled (e.g., training reimbursement, replacement costs, liquidated damages).

Key provisions

  • Prohibition: Employment contracts or service agreements between private employers and employees or independent contractors must not include any term that requires payment to the employer if the worker leaves before a specified period. This covers payments characterized as reimbursement for training, replacement costs, lost revenue, liquidated damages, or similar.
  • Employer conduct prohibited:
    • Requesting or requiring such a contract or agreement from an employee, prospective employee, or independent contractor;
    • Executing or attempting to enforce such a provision;
    • Obtaining or trying to obtain a waiver of the prohibition.
  • Void as against public policy: Any contract term or waiver that violates the prohibition is void and unenforceable.
  • Exceptions: Does not apply to repayment terms for cash advances or prepayments for services.
  • Definition: “Employer” excludes public employers.

Enforcement and remedies

  • Administrative: Labor Commissioner may impose an administrative fine of $1,000 to $5,000 per violation and recover proceeding costs (including investigative costs and reasonable attorney fees).
  • State enforcement: Attorney General may sue in the name of the state for injunction/equitable relief or civil penalties of $1,000 to $5,000 per violation, and if successful recover costs and attorney fees.
  • Private right of action: An aggrieved employee, prospective employee, or independent contractor may sue individually or as a class to recover actual damages, statutory damages of $5,000 per violation, injunctive or equitable relief, and reasonable attorney fees and costs.
  • Regulatory authority: Labor Commissioner may adopt implementing regulations.

Scope and timing

  • Applies to contracts entered into before, on, or after October 1, 2025 (per the bill text).
  • As-introduced version was referred to Commerce and Labor; legislative history in the packet shows committee referrals and actions.

Status / Procedural note

  • The Bill Information provided lists status “Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.” Materials also include legislative-action entries and a 2025-10-01 governor’s veto listed in the packet. Because the documents include materials from different jurisdictions and versions, readers should verify current status with the official legislative docket for the relevant state (Nevada).

Related item in the packet (different AB 255)

Several documents in the packet describe a California AB 255 (author: Haney) establishing a “Supportive‑Recovery Residence Program” (housing for people with substance use disorders). That is a distinct measure and is not the employment-contract bill summarized above. If you want a full summary of the California AB 255, I can provide one.

Compiled from official sources — confirm details with the bill’s official record.

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