California bills · 2025-2026 Regular Session
California AB 1697
Employment contracts: stay-or-pay provisions: contract date.
- Introduced
- In committee
- Passed House
- Passed Senate
- To Governor
- Became law
Sponsors
- Kalra (Democratic)
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
- 09/30/26 - Chaptered· Sep 30, 2026
- 08/30/26 - Enrolled· Aug 30, 2026
- 08/21/26 - Amended Senate· Aug 21, 2026
- 04/13/26 - Amended Assembly· Apr 13, 2026
- 03/16/26 - Amended Assembly· Mar 16, 2026
- 02/03/26 - Introduced· Feb 3, 2026
- AB1697
Roll-call votes
State vote data last updated Oct 15, 2026, 8:06 AM.
| Date | Vote | Result | Your legislators |
|---|---|---|---|
| Aug 26, 2026 House | AB 1697 Kalra Concurrence in Senate Amendments | pass | Set your home in California to see |
| Aug 25, 2026 Senate | 3rd Reading AB1697 Kalra By Laird Urgency Clause | pass | Set your home in California to see |
| Jun 23, 2026 Senate | Do pass, but first be re-referred to the Committee on [Appropriations] | pass | Set your home in California to see |
| Jun 10, 2026 Senate | Do pass, but first be re-referred to the Committee on [Judiciary] | pass | Set your home in California to see |
| May 18, 2026 House | AB 1697 Kalra Third Reading Urgency | pass | Set your home in California to see |
| Apr 22, 2026 House | Do pass. | pass | Set your home in California to see |
| Apr 8, 2026 House | Do pass as amended and be re-referred to the Committee on [Appropriations] | pass | Set your home in California to see |
Actions
- Sep 30, 2026 · Legislature
Chaptered by Secretary of State - Chapter 889, Statutes of 2026. - Sep 30, 2026 · Legislature
Approved by the Governor. - Sep 3, 2026 · Legislature
Enrolled and presented to the Governor at 4 p.m. - Aug 26, 2026 · House
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 68. Noes 6. Page 6568.). - Aug 25, 2026 · House
In Assembly. Concurrence in Senate amendments pending. - Aug 25, 2026 · Senate
Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 38. Noes 0.). - Aug 24, 2026 · Senate
Read second time. Ordered to third reading. - Aug 21, 2026 · Senate
Read third time and amended. Ordered to second reading. - Aug 4, 2026 · Senate
Read second time. Ordered to third reading. - Aug 3, 2026 · Senate
From committee: Be ordered to second reading pursuant to Senate Rule 28.8. - Jun 24, 2026 · Senate
From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 23). Re-referred to Com. on APPR. - Jun 10, 2026 · Senate
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on JUD. - May 27, 2026 · Senate
Referred to Coms. on L., P.E. & R. and JUD. - May 18, 2026 · Senate
In Senate. Read first time. To Com. on RLS. for assignment. - May 18, 2026 · House
Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 61. Noes 5. Page 5086.). - Apr 23, 2026 · House
Read second time. Ordered to third reading. - Apr 22, 2026 · House
From committee: Do pass. (Ayes 9. Noes 2.) (April 22). - Apr 14, 2026 · House
Re-referred to Com. on APPR. - Apr 13, 2026 · House
Read second time and amended. - Apr 9, 2026 · House
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 8). - Mar 17, 2026 · House
Re-referred to Com. on L. & E. - Mar 16, 2026 · House
From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended. - Mar 16, 2026 · House
Referred to Com. on L. & E. - Feb 4, 2026 · House
From printer. May be heard in committee March 6. - Feb 3, 2026 · House
Read first time. To print.