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California 20252026

AB 1697

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

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Source: Open States / PluralLatest available (refresh delayed). Last refreshed: 2026-10-19 09:12:31 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill
Subjects
Employmentcontracts, contractdate, stay-or-payprovisions
Introduced / first action
2026-02-03 00:00:00

Alternate titles

  • Division of Labor Standards Enforcement.

Source-supplied abstracts

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 worker's 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 provisions 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. The bill would establish exceptions to the above-described prohibition for contracts. Among these exceptions, the bill would except contracts for bonuses relating to specified recruitment and retention programs, and repayment obligations arising from advanced paid time off upon voluntary separation, as prescribed. The bill would further except certain affiliation contracts between a securities broker-dealer, insurance producer, or investment adviser and its agents or representatives that are registered and licensed, as specified, and their affiliates if the contract satisfies certain conditions. The bill would make related findings and declarations. This bill would declare that it is to take effect immediately as an urgency statute.

Sponsors

Source-supplied history

Actions

  1. Chaptered by Secretary of State - Chapter 889, Statutes of 2026.

    became-law

  2. Approved by the Governor.

    executive-signature

  3. Enrolled and presented to the Governor at 4 p.m.

    executive-receipt

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 68. Noes 6. Page 6568.).

    amendment-passage, committee-passage, committee-passage-favorable

  5. In Assembly. Concurrence in Senate amendments pending.

  6. Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 38. Noes 0.).

    amendment-passage, passage, reading-1, reading-3

  7. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  8. Read third time and amended. Ordered to second reading.

    amendment-passage, reading-1, reading-2, reading-3

  9. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  10. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

    committee-passage, reading-1, reading-2

  11. From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 23). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  12. From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on JUD.

    committee-passage, committee-passage-favorable, referral-committee

  13. Referred to Coms. on L., P.E. & R. and JUD.

    referral-committee

  14. In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1, referral-committee

  15. Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 61. Noes 5. Page 5086.).

    amendment-passage, passage, reading-1, reading-3

  16. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  17. From committee: Do pass. (Ayes 9. Noes 2.) (April 22).

    committee-passage, committee-passage-favorable

  18. Re-referred to Com. on APPR.

    referral-committee

  19. Read second time and amended.

    amendment-passage, reading-1, reading-2

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

    amendment-introduction, amendment-passage, committee-passage, referral-committee

  21. Re-referred to Com. on L. & E.

    referral-committee

  22. From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  23. Referred to Com. on L. & E.

    referral-committee

  24. From printer. May be heard in committee March 6.

  25. Read first time. To print.

    reading-1

Documents and versions

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Related measures

No resolvable related measure is supplied.