Stay-or-pay contract ban delayed a year, with exceptions for bonuses and advance leave
The ban on job contracts that make workers repay debts or costs when they leave applies only to contracts signed a year later than first set, with no liability for the gap. New exceptions cover retention bonuses, advanced paid time off and some broker-dealer contracts.
Who it affects
Employers and workers signing employment contracts
When
This law took effect on September 30, 2026, but the changes described here start on January 1, 2027.
- : Signed into law; Law took effect
- : The changes described here start to apply: stay-or-pay ban begins to apply to new contracts
Official text
California AB 1697: Employment contracts: stay-or-pay provisions: contract date.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.