VA HB923

Prohibits employers from entering into, enforcing, or threatening to enforce "stay or pay" contracts that require employees to pay debts, fees, or penalties upon termination of employment, including training reimbursement costs, quit fees, and replacement hire fees

Exempts government loan repayment/forgiveness programs, recognized apprenticeship programs, residential property contracts, and tuition repayment agreements for transferable credentials when structured with prorated schedules and employee protections

Permits retention bonuses and relocation payments if offered separately from employment contracts, with a maximum three-year retention period, prorated repayment obligations, and employee option to defer payment to avoid repayment liability

Allows employees to bring civil actions within two years to void prohibited contracts and recover damages, lost compensation, attorney fees, and costs; prohibits employer retaliation against employees who file suit

Imposes $1,000 civil penalty per violation as determined by the Commissioner, applies to contracts entered into or renewed on or after July 1, 2026