Literally this verse reads “A foreigner and hired [person] will not eat in it.” The it refers to the “passover” (pesach) in verse 43, which may mean either the meal or the animal. The word for sojourner is more correctly translated as “temporary resident” or “transient alien” (New American Bible), referring to someone who would not have been as much a part of the culture as the “sojourner” in verse 19. New Revised Standard Version has “bound servant,” possibly following New Jewish Publication Society’s Tanakh’s “bound laborer.” This interprets the word for sojourner here as a temporary laborer who was obligated to work for a period of time without pay. The hired servant, one word in Hebrew, was a day laborer who was paid for his work. These “hired servants” were of course different from the “slaves” (verse 44), who had been bought from someone.

Quoted with permission from Osborn, Noel D. and Hatton, Howard A. A Handbook on Exodus. (UBS Helps for Translators). New York: UBS, 1999. For this and other handbooks for translators see here .