Bill Commons

CA AB 1697

enacted

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

California · 2025-2026 Regular Session · lower

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Quick answers

Did CA AB 1697 pass?

Yes. CA AB 1697 has been enacted into law. Latest recorded action (2026-09-30): Chaptered by Secretary of State - Chapter 889, Statutes of 2026.

What is CA AB 1697 about?

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 provisions 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. The bill would establish exceptions to the above-described prohibition for contracts. Among these exceptions, the bill would except contracts for bonuses relating to specified recruitment and retention programs, and repayment obligations arising from advanced paid time off upon voluntary separation, as prescribed. The bill would further except certain affiliation contracts between a securities broker-dealer, insurance producer, or investment adviser and its agents or representatives that are registered and licensed, as specified, and their affiliates if the contract satisfies certain conditions. The bill would make related findings and declarations. This bill would declare that it is to take effect immediately as an urgency statute.

Who sponsors CA AB 1697?

Kalra is the primary sponsor of CA AB 1697.

Description

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 provisions 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. The bill would establish exceptions to the above-described prohibition for contracts. Among these exceptions, the bill would except contracts for bonuses relating to specified recruitment and retention programs, and repayment obligations arising from advanced paid time off upon voluntary separation, as prescribed. The bill would further except certain affiliation contracts between a securities broker-dealer, insurance producer, or investment adviser and its agents or representatives that are registered and licensed, as specified, and their affiliates if the contract satisfies certain conditions. The bill would make related findings and declarations. This bill would declare that it is to take effect immediately as an urgency statute.

Introduced
2026-03-16
Latest action
2026-09-30 — Chaptered by Secretary of State - Chapter 889, Statutes of 2026.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • Kalraauthor

Committees

Not provided by source.

Action timeline

Newest first

  1. 2026-09-30

    Chaptered by Secretary of State - Chapter 889, Statutes of 2026.

    became-law

  2. 2026-09-30

    Approved by the Governor.

    executive-signature

  3. 2026-09-03

    Enrolled and presented to the Governor at 4 p.m.

    executive-receipt

  4. 2026-08-26

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 68. Noes 6.).

    amendment-passage,committee-passage,committee-passage-favorable

  5. 2026-08-26

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 68. Noes 6. Page 6568.).

    amendment-passage,committee-passage,committee-passage-favorable

  6. 2026-08-25

    In Assembly. Concurrence in Senate amendments pending.

  7. 2026-08-25

    Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 38. Noes 0.).

    amendment-passage,passage,reading-1,reading-3

  8. 2026-08-24

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  9. 2026-08-21

    Read third time and amended. Ordered to second reading.

    amendment-passage,reading-1,reading-2,reading-3

  10. 2026-08-04

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  11. 2026-08-03

    From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

    committee-passage,reading-1,reading-2

  12. 2026-06-24

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 23). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  13. 2026-06-10

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (June 10). Re-referred to Com. on JUD.

    committee-passage,committee-passage-favorable,referral-committee

  14. 2026-05-27

    Referred to Coms. on L., P.E. & R. and JUD.

    referral-committee

  15. 2026-05-18

    In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1,referral-committee

  16. 2026-05-18

    Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 61. Noes 5. Page 5086.).

    amendment-passage,passage,reading-1,reading-3

  17. 2026-04-23

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  18. 2026-04-22

    From committee: Do pass. (Ayes 9. Noes 2.) (April 22).

    committee-passage,committee-passage-favorable

  19. 2026-04-14

    Re-referred to Com. on APPR.

    referral-committee

  20. 2026-04-13

    Read second time and amended.

    amendment-passage,reading-1,reading-2

  21. 2026-04-09

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (April 8).

    amendment-introduction,amendment-passage,committee-passage,referral-committee

  22. 2026-03-17

    Re-referred to Com. on L. & E.

    referral-committee

  23. 2026-03-16

    Referred to Com. on L. & E.

    referral-committee

  24. 2026-03-16

    From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.

    amendment-introduction,amendment-passage,committee-passage,reading-1,reading-2,referral-committee

  25. 2026-02-04

    From printer. May be heard in committee March 6.

  26. 2026-02-03

    Read first time. To print.

    reading-1

Versions

  • 02/03/26 - Introduced — 2026-02-03Compare
  • 03/16/26 - Amended Assembly — 2026-03-16Compare
  • 04/13/26 - Amended Assembly — 2026-04-13Compare
  • 08/21/26 - Amended Senate — 2026-08-21Compare
  • 08/30/26 - Enrolled — 2026-08-30Compare
  • 09/30/26 - Chaptered — 2026-09-30Compare
  • (document, no version)Compare
  • AB1697Compare

Documents

Votes

  • Do pass as amended and be re-referred to the Committee on [Appropriations]

    2026-04-08 · pass · 6-1

    Member-level votes (7)
    • Chen: yes
    • Elhawary: yes
    • Kalra: yes
    • Ortega: yes
    • Lee: yes
    • Ward: yes
    • Lackey: no

  • Do pass.

    2026-04-22 · pass · 9-2

    Member-level votes (15)
    • Fong: yes
    • Arambula: yes
    • Pacheco: yes
    • Wicks: yes
    • Krell: yes
    • Mark González: yes
    • Pellerin: yes
    • Solache: yes
    • Caloza: yes
    • Hoover: no
    • Dixon: no
    • Ta: other
    • Muratsuchi: other
    • Calderon: other
    • Tangipa: other

  • AB 1697 Kalra Third Reading Urgency

    2026-05-18 · pass · 61-5

    Member-level votes (80)
    • Ransom: yes
    • Solache: yes
    • Ward: yes
    • Irwin: yes
    • Schiavo: yes
    • Soria: yes
    • Bonta: yes
    • Harabedian: yes
    • Ahrens: yes
    • Gabriel: yes
    • Mark González: yes
    • Michelle Rodriguez: yes
    • Muratsuchi: yes
    • Elhawary: yes
    • Berman: yes
    • Rogers: yes
    • Haney: yes
    • Schultz: yes
    • Nguyen: yes
    • Ortega: yes
    • Arambula: yes
    • Aguiar-Curry: yes
    • McKinnor: yes
    • Wicks: yes
    • Papan: yes
    • Boerner: yes
    • Rivas: yes
    • Sharp-Collins: yes
    • Bains: yes
    • Wilson: yes
    • Lowenthal: yes
    • Addis: yes
    • Bennett: yes
    • Connolly: yes
    • Alvarez: yes
    • Alanis: yes
    • Hart: yes
    • Carrillo: yes
    • Gipson: yes
    • Garcia: yes
    • Bauer-Kahan: yes
    • Patel: yes
    • Petrie-Norris: yes
    • Davies: yes
    • Jeff Gonzalez: yes
    • Krell: yes
    • Fong: yes
    • Ramos: yes
    • Ávila Farías: yes
    • Kalra: yes
    • Pacheco: yes
    • Jackson: yes
    • Flora: yes
    • Caloza: yes
    • Zbur: yes
    • Patterson: yes
    • Wallis: yes
    • Valencia: yes
    • Bryan: yes
    • Pellerin: yes
    • Blanca Rubio: yes
    • Macedo: no
    • Sanchez: no
    • Hadwick: no
    • DeMaio: no
    • Hoover: no
    • Dixon: other
    • Gallagher: other
    • Quirk-Silva: other
    • Lackey: other
    • Stefani: other
    • Tangipa: other
    • Ellis: other
    • Calderon: other
    • Celeste Rodriguez: other
    • Ta: other
    • Johnson: other
    • Lee: other
    • Castillo: other
    • Chen: other

  • Do pass, but first be re-referred to the Committee on [Judiciary]

    2026-06-10 · pass · 5-0

    Member-level votes (5)
    • Durazo: yes
    • Smallwood-Cuevas: yes
    • Laird: yes
    • Cortese: yes
    • Strickland: yes

  • Do pass, but first be re-referred to the Committee on [Appropriations]

    2026-06-23 · pass · 13-0

    Member-level votes (13)
    • Ashby: yes
    • Valladares: yes
    • Reyes: yes
    • Stern: yes
    • Caballero: yes
    • Laird: yes
    • Wahab: yes
    • Umberg: yes
    • Wiener: yes
    • Weber Pierson: yes
    • Durazo: yes
    • Allen: yes
    • Niello: yes

Related bills

No related bills recorded for this bill.

Official source

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB1697

Attribution

Data from openstates_api_sync, retrieved 2026-10-02T08:27:01.163491Z

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