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California bills · 2025-2026 Regular Session

California AB 692

Employment: contracts in restraint of trade.

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

Sponsors

Cosponsors (5)

Summary

Official abstract published by the California legislature· summary

Existing law declares every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind to be void, except as expressly provided. Existing law provides for a system of labor standards enforcement administered by the Labor Commissioner. This bill would, for contracts entered into on or after January 1, 2026, make it unlawful to include in any employment contract, or to require a worker to execute as a condition of employment or a work relationship a contract that includes, specified contract terms, including a term that requires the worker to pay an employer, training provider, or debt collector for a debt if the worker's employment or work relationship with a specific employer terminates. The bill would declare these contracts as contracts that restrain a person from engaging in a lawful profession, trade, or business, and as void and contrary to public policy, except as provided. This bill would authorize a worker who has been subjected to the above-described prohibited conduct regarding a contract or its terms or a work representative to bring an action on behalf of that worker, other persons similarly situated, or both, in any court of competent jurisdiction. The bill would make a person who violates these provisions liable for specified civil penalties and relief.

Text versions

Roll-call votes

State vote data last updated Oct 16, 2026, 12:24 AM.

DateVoteResultYour legislators
Sep 12, 2025
House		AB 692 Kalra Concurrence in Senate AmendmentspassSet your home in California to see
Sep 10, 2025
Senate		3rd Reading AB692 Kalra et al. By PérezpassSet your home in California to see
Aug 29, 2025
Senate		Do pass as amendedpassSet your home in California to see
Aug 18, 2025
Senate		Placed on suspense filepassSet your home in California to see
Jul 15, 2025
Senate		Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]passSet your home in California to see
Jun 25, 2025
Senate		Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]passSet your home in California to see
Jun 5, 2025
House		AB 692 Kalra Assembly Third ReadingpassSet your home in California to see
May 23, 2025
House		Do pass as amended.passSet your home in California to see
Apr 22, 2025
House		Do pass and be re-referred to the Committee on [Appropriations]passSet your home in California to see
Apr 2, 2025
House		Do pass and be re-referred to the Committee on [Judiciary]passSet your home in California to see

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