- Postponement of compliance until January 1, 2027.
- Expansion of the exception for certain bonuses awarded later in the employment relationship so that they need not be
AB 692
California Revises Stay-or-Pay Provisions Under AB 1697
By Rachel L. Szela on
Posted in Restrictive Covenants
In 2025, Governor Newsom signed Assembly Bill (AB) 692, which made it unlawful to include in any employment contract or requirement that a worker execute, as a condition of employment, a contract that includes terms that require the worker to pay an employer, training provider, or debt collector for a debt if the worker’s…
California Employers Should Revisit Repayment and “Stay-or-Pay” Arrangements in Light of AB 692’s Recent Enactment
By Susan E. Groff on
Posted in Restrictive Covenants
California’s Assembly Bill (AB) 692 took effect on January 1, 2026, impacting repayment and “stay-or-pay” agreements. For a summary of the limitations and requirements stemming from this law, please see our earlier blog post. California employers should already be evaluating offer letters, bonus agreements, training repayment provisions, tuition arrangements, and other documents that impose…
Assembly Bill 692: California Passes Prohibition Against Workers Contracting to Repay Debts
By Adrienne L. Conrad & Philip M. Duclos on
Posted in Restrictive Covenants
Governor Newsom has signed Assembly Bill (AB) 692, which adds Section 16608 to the Business and Professions Code and Section 926 to the Labor Code, making it unlawful to include in any employment contract or require a worker to execute, as a condition of employment, a contract that includes terms that require a worker…