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Index/Topics/stay-or-pay contracts

stay-or-pay contracts

The legality and enforceability of stay-or-pay contracts, particularly in relation to federal employees and workers.

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Jan 16, 2026

What legal defenses have federal employees used to resist repayment demands under stay-or-pay agreements?

Federal employees and other workers resisting repayment demands in “stay-or-pay” contracts have pressed a mix of statutory, regulatory and common‑law defenses — chiefly National Labor Relations Act pr...

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