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
AB 692
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…