AB-1697 • 2026

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

Education Labor

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Kalra
Last action: 2026-06-10
Official status: From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on JUD.
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

AB 1697, as amended, Kalra.

What This Bill Does

AB 1697, as amended, Kalra.
Employment contracts: stay-or-pay provisions: contract date.
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.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-06-10 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on JUD.
2026-05-27 California Legislative Information
Referred to Coms. on L., P.E. & R. and JUD.
2026-05-18 California Legislative Information
In Senate. Read first time. To Com. on RLS. for assignment.
2026-05-18 California Legislative Information
Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 61. Noes 5. Page 5086.).
2026-04-23 California Legislative Information
Read second time. Ordered to third reading.
2026-04-22 California Legislative Information
From committee: Do pass. (Ayes 9. Noes 2.) (April 22).
2026-04-14 California Legislative Information
Re-referred to Com. on APPR.
2026-04-13 California Legislative Information
Read second time and amended.
2026-04-09 California Legislative Information
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 8).
2026-03-17 California Legislative Information
Re-referred to Com. on L. & E.
2026-03-16 California Legislative Information
From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.
2026-03-16 California Legislative Information
Referred to Com. on L. & E.
2026-02-04 California Legislative Information
From printer. May be heard in committee March 6.
2026-02-03 California Legislative Information
Read first time. To print.

Official Summary Text

AB 1697, as amended, Kalra.
Employment contracts: stay-or-pay provisions: contract date.
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 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.
This bill would declare that it is to take effect immediately as an urgency statute.

Current Bill Text

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