Training repayment agreement template
A training repayment agreement says that if you pay for an employee's certification or course and they leave soon after, they pay back part of the cost. This template ties repayment to what the training actually cost, reduces it every month they stay, and cancels it if you let them go without cause. Read it below, check your state's rules, then send it before the course starts.
Updated November 5, 2026 · 3 min read
The contract
Gray blanks are yours to fill in before you send. Each signer fills in the blanks in their color.
- You, before sending
- Employee
- Company manager
Training Repayment Agreement
This Training Repayment Agreement (the "Agreement") is made on Agreement date between Company name (the "Company") and Employee name (the "Employee").
1. The training
The Company will pay for the Employee to complete Course or certification provided by Training provider, from Training start date to Training end date (the "Training"). The Training leads to a credential the Employee keeps and can use in work for any employer. It is separate from, and in addition to, the ordinary on-the-job training the Company gives all employees in this role, which is never subject to repayment.
2. Cost of the Training
The Company will pay these costs directly to the provider or reimburse them:
- Tuition or course fees: Tuition
- Exam and licensing fees: Exam fees
- Books, tools and materials: Materials
- Travel and lodging: Travel
Total: Total training cost (the "Training Cost"). The Training Cost never includes wages the Company pays the Employee for time spent in training. If the actual cost turns out lower than this amount, the lower figure is the Training Cost, and the Company will give the Employee receipts on request.
3. A voluntary choice
The Training is optional. The Employee may decline it, or decline to sign this Agreement, without any effect on their job, pay or standing with the Company.
4. Repayment period and proration
If the Employee stays employed for Repayment period in months months after the Training end date (the "Repayment Period"), nothing is owed. If repayment applies under section 5, the amount owed is the Training Cost multiplied by the number of full months remaining in the Repayment Period, divided by the total number of months in it. For example, an employee who leaves with a quarter of the Repayment Period remaining owes a quarter of the Training Cost.
5. When repayment applies
Repayment applies only if, before the end of the Repayment Period, the Employee resigns, or the Company dismisses the Employee for serious misconduct, such as theft, violence or a serious breach of safety rules, that is documented in writing.
6. When repayment does not apply
Nothing is owed if the Company ends the Employee's employment for any reason other than serious misconduct, including a layoff, a position elimination or performance; if the Employee leaves because of a disability, a serious health condition, military service, or another reason the law protects; if the Employee resigns because the Company has not paid them as agreed; or if the Employee does not pass the Training despite attending and making a genuine effort.
7. How repayment is made
If repayment applies, the Company will send the Employee a written invoice showing how the amount was calculated. The Employee may repay it in equal monthly installments over up to Months to repay months, with no interest, fees or collection costs. The Company will not deduct any amount from the Employee's wages, including final pay, unless the law where the Employee works allows it and the Employee agrees in a separate written authorization signed at that time.
8. Limits
The Employee will never owe more than the Training Cost, reduced under section 4. If a law where the Employee works limits or prohibits any part of this Agreement, that part is limited or removed as the law requires and the rest stays in effect.
9. General terms
This Agreement does not promise employment for any period and does not change whether the Employee's employment is at will. It is governed by the laws of the state of State, is the full agreement about the Training, can be changed only in writing signed by both parties, and may be signed electronically.
I chose to take the Training, I had time to read this Agreement before signing, and I understand when repayment does and does not apply.
Employee
For the Company
Opens it in SignMaster as a template you can edit and send.
A starting point, not legal advice. Have a lawyer review it for your state and situation.
On this page
When a repayment agreement is fair
Paying for a CDL course, exam prep for a trade license or a manufacturer's certification is a real investment, and it's reasonable to want some back if the employee leaves the week after they pass. These agreements have drawn scrutiny, though, because some employers use them to charge inflated "training" fees for ordinary on-the-job learning. A fair agreement covers training that's separate from normal job training, charges no more than you spent, and shrinks the amount over time.
Sign it before the training starts, as its own agreement, so the employee can decide whether to take the course on those terms.
What the template covers
- The training: the course or certification, the provider, the dates, and the credential the employee keeps wherever they work next.
- Actual cost: tuition, exam fees, materials and travel you pay, itemized. Wages for time in training aren't counted.
- A voluntary choice: the employee can turn the training down without any effect on their job.
- Repayment period: the number of months after which nothing is owed.
- Proration: the amount falls with each full month worked, so leaving late in the period costs little.
- What triggers repayment: resigning, or dismissal for serious misconduct, before the period ends.
- What doesn't: layoffs, dismissal without cause, leaving for a reason the law protects, or failing despite a genuine effort.
- How it's repaid: an invoice with an interest-free installment plan, never an automatic deduction from pay.
Mistakes that make these unenforceable
- Charging for ordinary on-the-job training. Learning your systems or how you do the job is part of employment, not a debt.
- Asking for more than you spent. An inflated figure looks like a penalty for leaving, and courts treat penalties harshly.
- No proration. Demanding the full amount from someone who stayed eleven months out of twelve is hard to defend.
- Taking it out of the final paycheck. Federal wage law bars deductions that cut pay below minimum wage, and many states restrict deductions further.
- Ignoring your state. Some states, Colorado and California among them, now restrict when an employer can recover training costs.
These agreements are under scrutiny
Regulators and several state legislatures have questioned training repayment agreements, sometimes called stay-or-pay contracts. This template sits at the fair end: real costs only, prorated, nothing owed after a layoff and no paycheck deductions, and section 8 cuts back anything a local law forbids. Check the rule where the employee works first.
How to send it with SignMaster
- 1
Open the template
Choose Use this template above. The employee signs first, then a manager signs for the company.
- 2
Itemize the real cost
Type the course, provider, dates and each cost into the gray blanks, then the repayment period in months. Work from real invoices, and attach the provider's quote if you have one.
- 3
Give them time to decide
Send it well before the course is booked, with a sign-by date a week out and reminders, rather than handing it over on the first morning of class.
- 4
Signed copies for both
When the manager signs, both get the PDF with its certificate of completion. If the employee declines with a reason, talk it through before booking.
Sending a whole crew to the same certification? Bulk send gives each employee their own agreement from a CSV, with columns such as Tuition and Training start date filling the blanks that differ. Each person's copy stays private to them.
Questions? Answers.
Are training repayment agreements legal?
In many states, yes, if they're reasonable: tied to real costs, prorated and not used for ordinary job training. Some states restrict or ban them for most workers, and the rules have been changing, so check yours first.
Can I deduct the repayment from the last paycheck?
Not without real risk. Federal law bars deductions that take pay below minimum wage, and many states require separate written consent or ban such deductions outright. Send an invoice instead, as this template does.
What if we lay the employee off?
Under this template they owe nothing. Asking someone you let go to pay for training you chose to provide is unfair and much harder to enforce.
How long should the repayment period be?
Match it to the cost: a short course might justify a few months, an expensive certification a year or two. The longer the period, the more proration matters.