Legislation in Virginia that would have prohibited employers in the state from requiring workers to repay money or incur financial penalties if they leave a job within a certain period of time has been defeated. The bill sought to ban the use of “stay-or-pay” contracts, defined as employment agreements requiring employees to repay certain costs if they leave a job. As drafted, the legislation would have rendered certain agreements between international recruitment agencies and foreign-educated health care professionals unenforceable. Because these agreements are foundational to the international recruitment model, the bill threatened to effectively eliminate this pathway for bringing qualified health care professionals into Virginia.

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