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Bills

AB 1697: Employment contracts: stay-or-pay provisions: contract date.

  • Session Year: 2025-2026
  • House: Assembly
  • Latest Version Date: 2026-03-16

Current Status:

In Progress

(2026-04-09: From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 8).)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing law generally prohibits an employment contract from requiring a worker to pay certain penalties, fees, costs, or debts related to employment or education if the workers employment or work relationship terminates, as provided. Existing law provides that a contract that is unlawful under that prohibition is void and contrary to public policy as a restraint of engaging in a lawful profession, trade, or business. Existing law authorizes a worker, among other persons, to bring a civil action for specified civil penalties and relief for a violation of these provisions. Existing law applies these prohibitions to contracts entered into on or after January 1, 2026.

This bill would instead apply those provisions to contracts entered into on or after January 1, 2027.

Existing law establishes the Division of Labor Standards Enforcement under the direction of the Labor Commissioner within the Department of Industrial Relations and sets forth its powers and duties of the commissioner and the commissioners deputies and agents, including the power to issue subpoenas for the purpose of carrying out the laws under their jurisdiction.This bill would make nonsubstantive changes to those provisions.

Discussed in Hearing

Assembly Standing Committee on Labor and Employment2MIN
Apr 8, 2026

Assembly Standing Committee on Labor and Employment

View Older Hearings

News Coverage:

AB 1697: Employment contracts: stay-or-pay provisions: contract date. | Digital Democracy