CaliforniaEmployment: contracts in restraint of trade.
What it does
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.
More detail
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.
Where do you stand?
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2025
- Oct 13Chaptered by Secretary of State - Chapter 703, Statutes of 2025.Latest
- Oct 13Approved by the Governor Gavin Newsom.Became Law
- Sep 23Enrolled and presented to the Governor at 4 p.m.To Governor
- Sep 12
- Vote recorded AB 692 Kalra Concurrence in Senate Amendments. Result: pass.Lower
- Sep 11Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 20. Page 3340.).Major
- Sep 10In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB692 Kalra et al. By Pérez. Result: pass.Upper
- Sep 10Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 11. Page 2815.).Passed Senate
- Sep 8Read second time. Ordered to third reading.Minor
- Sep 5Read third time and amended. Ordered to second reading.Major
- Sep 2Read second time. Ordered to third reading.Minor
- Aug 29Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- Aug 29From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).Major
- Aug 18In committee: Referred to suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 17Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 16From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15).Major
- Jul 15
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 26Read second time and amended. Re-referred to Com. on JUD.Major
- Jun 25From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 25).Major
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]. Result: pass.Upper
- Jun 18Referred to Coms. on L., P.E. & R. and JUD.Minor
- Jun 9In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Jun 5Read third time. Passed. Ordered to the Senate. (Ayes 47. Noes 21. Page 2112.)Passed Assembly
- Vote recorded AB 692 Kalra Assembly Third Reading. Result: pass.Lower
- May 29Read third time and amended. Ordered to third reading. (Page 1788.)Major
- May 27Read second time. Ordered to third reading.Minor
- May 23Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Lower
- May 23From committee: Amend, and do pass as amended. (Ayes 10. Noes 3.) (May 23).Major
- May 23Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)
- May 7In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 22). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 22Coauthors revised.
- Apr 3From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (April 2). Re-referred to Com. on JUD.Minor
- Apr 2
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary]. Result: pass.Lower
- Mar 27Coauthors revised.
- Mar 11Re-referred to Com. on L. & E.Minor
- Mar 10From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.Major
- Mar 10Referred to Coms. on L. & E. and JUD.Minor
- Feb 15From printer. May be heard in committee March 17.
- Feb 14Read first time. To print.Introduced