Employment: contracts in restraint of trade.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill, AB 692, aims to prevent employers from including restrictive contract terms in employment agreements, particularly those requiring workers to pay for training or debt repayment upon termination. It prohibits contracts that require workers to pay for debt if they leave their job, and seeks to limit the ability of employers to impose penalties or fees related to employment termination. The bill allows workers to sue employers who violate these provisions, and establishes penalties for non-compliance. It includes specific exceptions for certain loan repayment programs, apprenticeship programs, and discretionary bonuses.
Key provisions
- Prohibits requiring workers to pay for training or debt repayment upon job termination.
- Outlaws penalties, fees, or costs imposed by employers upon employee termination.
- Allows workers to sue employers for violating the new contract restrictions.
- Establishes civil penalties for violations, up to $5,000 per worker.
- Defines key terms such as ‘debt,’ ‘debt collector,’ and ‘employer’ for clarity.
- Includes exceptions for loan repayment assistance programs, certain transferable credentials, and apprenticeship programs.
- Specifies conditions for discretionary bonuses to avoid being considered restrictive contracts.
- Addresses contracts related to residential property leases and financing.
Who is affected
- Employees
- Employers
- Training Providers
- Debt Collectors
Bill text
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