AB 692
Employment: contracts in restraint of trade.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Chaptered
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Sign in to take action- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill, AB 692, aims to prevent employers from including restrictive contract terms in employment agreements, particularly those related to debt repayment or training costs. Starting January 1, 2026, it prohibits requiring workers to pay for debt, training, or other costs as a condition of employment or as a contract term. The bill also allows workers to sue employers who violate these restrictions and establishes penalties for non-compliance. Certain exceptions apply, such as loan repayment assistance programs and specific apprenticeship agreements.
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