Employment: contracts in restraint of trade.
- Prohibits employers from requiring workers to repay training costs or fees if they leave their job after January 2026.
- Authorizes the Labor Commissioner to investigate complaints and issue penalties up to $5,000 per violation.
- Voids any employment contract terms that impose financial penalties on workers who terminate employment.
- Exempts approved apprenticeship programs and certain educational credentials from these restrictions.
Assembly Member Kalra's legislation prohibits California employers from requiring workers to pay debts or penalties if their employment ends, addressing contracts that impose financial obligations upon job termination. The measure, supported by several legislative colleagues, establishes these restrictions for agreements entered into after January 1, 2026.
The bill creates specific exemptions for government loan repayment programs, certain educational credentials, and approved apprenticeships. For educational programs, contracts must be offered separately from employment agreements, specify repayment terms upfront, and provide prorated repayment schedules. The provisions apply to traditional employees as well as independent contractors, freelancers, interns, and apprentices.
Under the enforcement framework, the Labor Commissioner may investigate complaints and issue citations, while workers can pursue civil actions for actual damages or $5,000, whichever is greater, plus attorney fees. The bill declares prohibited contract terms void and classifies violations as unfair competition under state law. Implementation requires coordination between the Labor Commissioner and Attorney General to ensure compliance across jurisdictions.
 Anna CaballeroD Senator | Committee Member |  Not Contacted | |
 Roger NielloR Senator | Committee Member | Not Contacted | |
 Benjamin AllenD Senator | Committee Member | Not Contacted | |
 Eloise ReyesD Senator | Committee Member | Not Contacted | |
 Ash KalraD Assemblymember | Bill Author | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 4 | 1 | 0 | 5 | PASS |
- Prohibits employers from requiring workers to repay training costs or fees if they leave their job after January 2026.
- Authorizes the Labor Commissioner to investigate complaints and issue penalties up to $5,000 per violation.
- Voids any employment contract terms that impose financial penalties on workers who terminate employment.
- Exempts approved apprenticeship programs and certain educational credentials from these restrictions.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Member Kalra's legislation prohibits California employers from requiring workers to pay debts or penalties if their employment ends, addressing contracts that impose financial obligations upon job termination. The measure, supported by several legislative colleagues, establishes these restrictions for agreements entered into after January 1, 2026.
The bill creates specific exemptions for government loan repayment programs, certain educational credentials, and approved apprenticeships. For educational programs, contracts must be offered separately from employment agreements, specify repayment terms upfront, and provide prorated repayment schedules. The provisions apply to traditional employees as well as independent contractors, freelancers, interns, and apprentices.
Under the enforcement framework, the Labor Commissioner may investigate complaints and issue citations, while workers can pursue civil actions for actual damages or $5,000, whichever is greater, plus attorney fees. The bill declares prohibited contract terms void and classifies violations as unfair competition under state law. Implementation requires coordination between the Labor Commissioner and Attorney General to ensure compliance across jurisdictions.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 4 | 1 | 0 | 5 | PASS |
Anna CaballeroD Senator | Committee Member | Not Contacted | |
Roger NielloR Senator | Committee Member | Not Contacted | |
Benjamin AllenD Senator | Committee Member | Not Contacted | |
Eloise ReyesD Senator | Committee Member | Not Contacted | |
Ash KalraD Assemblymember | Bill Author | Not Contacted |