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California bills · 2025-2026 Regular Session

California AB 1697

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

  1. Introduced
  2. In committee
  3. Passed House
  4. Passed Senate
  5. To Governor
  6. Became law

Sponsors

Summary

Official abstract published by the California legislature· summary

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.

Text versions

Roll-call votes

State vote data last updated Oct 15, 2026, 8:06 AM.

DateVoteResultYour legislators
Aug 26, 2026
House
AB 1697 Kalra Concurrence in Senate AmendmentspassSet your home in California to see
Aug 25, 2026
Senate
3rd Reading AB1697 Kalra By Laird Urgency ClausepassSet your home in California to see
Jun 23, 2026
Senate
Do pass, but first be re-referred to the Committee on [Appropriations]passSet your home in California to see
Jun 10, 2026
Senate
Do pass, but first be re-referred to the Committee on [Judiciary]passSet your home in California to see
May 18, 2026
House
AB 1697 Kalra Third Reading UrgencypassSet your home in California to see
Apr 22, 2026
House
Do pass.passSet your home in California to see
Apr 8, 2026
House
Do pass as amended and be re-referred to the Committee on [Appropriations]passSet your home in California to see

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