Bill Commons

CA AB 692

enacted

Employment: contracts in restraint of trade.

California · 2025-2026 Regular Session · lower

Quick answers

Did CA AB 692 pass?

Yes. CA AB 692 has been enacted into law as of 2025-10-13. Latest recorded action (2025-10-13): Chaptered by Secretary of State - Chapter 703, Statutes of 2025.

What is CA AB 692 about?

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. 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.

Who sponsors CA AB 692?

Kalra is the primary sponsor of CA AB 692, joined by 5 cosponsors.

Description

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. 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.

Introduced
2025-03-10
Latest action
2025-10-13 — Chaptered by Secretary of State - Chapter 703, Statutes of 2025.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • Kalraauthor
  • Leecoauthor
  • Rogerscoauthor
  • Sharp-Collinscoauthor
  • Cortesecoauthor
  • Pérezcoauthor

Committees

Not provided by source.

Action timeline

  1. 2025-02-14

    Read first time. To print.

    reading-1

  2. 2025-02-15

    From printer. May be heard in committee March 17.

  3. 2025-03-10

    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

  4. 2025-03-10

    Referred to Coms. on L. & E. and JUD.

    referral-committee

  5. 2025-03-11

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

    referral-committee

  6. 2025-03-27

    Coauthors revised.

  7. 2025-04-03

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (April 2). Re-referred to Com. on JUD.

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

  8. 2025-04-22

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 22). Re-referred to Com. on APPR.

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

  9. 2025-04-22

    Coauthors revised.

  10. 2025-05-07

    In committee: Set, first hearing. Referred to APPR. suspense file.

    referral-committee

  11. 2025-05-23

    Read second time and amended. Ordered returned to second reading.

    amendment-passage,reading-1,reading-2

  12. 2025-05-23

    Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)

  13. 2025-05-23

    From committee: Amend, and do pass as amended. (Ayes 10. Noes 3.) (May 23).

    amendment-introduction,amendment-passage,committee-passage

  14. 2025-05-27

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  15. 2025-05-29

    Read third time and amended. Ordered to third reading. (Page 1788.)

    amendment-passage,reading-1,reading-3

  16. 2025-06-05

    Read third time. Passed. Ordered to the Senate. (Ayes 47. Noes 21. Page 2112.)

    passage,reading-1,reading-3

  17. 2025-06-09

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

    reading-1,referral-committee

  18. 2025-06-18

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

    referral-committee

  19. 2025-06-25

    From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 25).

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

  20. 2025-06-26

    Read second time and amended. Re-referred to Com. on JUD.

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

  21. 2025-07-16

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15).

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

  22. 2025-07-17

    Read second time and amended. Re-referred to Com. on APPR.

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

  23. 2025-08-18

    In committee: Referred to suspense file.

    referral-committee

  24. 2025-08-29

    Read second time and amended. Ordered returned to second reading.

    amendment-passage,reading-1,reading-2

  25. 2025-08-29

    From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).

    amendment-introduction,amendment-passage,committee-passage

  26. 2025-09-02

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  27. 2025-09-05

    Read third time and amended. Ordered to second reading.

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

  28. 2025-09-08

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  29. 2025-09-10

    Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 11. Page 2815.).

    passage,reading-1,reading-3

  30. 2025-09-10

    In Assembly. Concurrence in Senate amendments pending.

  31. 2025-09-11

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 20. Page 3340.).

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

  32. 2025-09-23

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

    executive-receipt

  33. 2025-10-13

    Approved by the Governor.

    executive-signature

  34. 2025-10-13

    Chaptered by Secretary of State - Chapter 703, Statutes of 2025.

    became-law

Versions

  • 02/14/25 - Introduced — 2025-02-14Compare
  • 03/10/25 - Amended Assembly — 2025-03-10Compare
  • 05/23/25 - Amended Assembly — 2025-05-23Compare
  • 05/29/25 - Amended Assembly — 2025-05-29Compare
  • 06/26/25 - Amended Senate — 2025-06-26Compare
  • 07/17/25 - Amended Senate — 2025-07-17Compare
  • 08/29/25 - Amended Senate — 2025-08-29Compare
  • 09/05/25 - Amended Senate — 2025-09-05Compare
  • 09/15/25 - Enrolled — 2025-09-15Compare
  • 10/13/25 - Chaptered — 2025-10-13Compare
  • AB692Compare
  • (document, no version)Compare

Documents

Votes

  • Do pass and be re-referred to the Committee on [Judiciary]

    2025-04-02 · pass · 5-0

    Member-level votes (7)
    • Elhawary: yes
    • Ward: yes
    • Ortega: yes
    • Lee: yes
    • Kalra: yes
    • Chen: other
    • Flora: other

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

    2025-04-22 · pass · 7-3

    Member-level votes (12)
    • Kalra: yes
    • Harabedian: yes
    • Stefani: yes
    • Lee: yes
    • Zbur: yes
    • Connolly: yes
    • Bryan: yes
    • Dixon: no
    • Macedo: no
    • Sanchez: no
    • Pacheco: other
    • Bauer-Kahan: other

  • Do pass as amended.

    2025-05-23 · pass · 10-3

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

  • AB 692 Kalra Assembly Third Reading

    2025-06-05 · pass · 47-21

    Member-level votes (79)
    • Petrie-Norris: yes
    • Schultz: yes
    • Aguiar-Curry: yes
    • Carrillo: yes
    • Solache: yes
    • Quirk-Silva: yes
    • Gipson: yes
    • Kalra: yes
    • Ransom: yes
    • Haney: yes
    • Krell: yes
    • Sharp-Collins: yes
    • Ward: yes
    • Wicks: yes
    • Fong: yes
    • Addis: yes
    • Harabedian: yes
    • Lowenthal: yes
    • Muratsuchi: yes
    • Schiavo: yes
    • Papan: yes
    • Rivas: yes
    • McKinnor: yes
    • Ahrens: yes
    • Arambula: yes
    • Garcia: yes
    • Celeste Rodriguez: yes
    • Lee: yes
    • Bennett: yes
    • Caloza: yes
    • Connolly: yes
    • Irwin: yes
    • Mark González: yes
    • Pacheco: yes
    • Calderon: yes
    • Bonta: yes
    • Rogers: yes
    • Pellerin: yes
    • Stefani: yes
    • Alvarez: yes
    • Valencia: yes
    • Bryan: yes
    • Boerner: yes
    • Elhawary: yes
    • Jackson: yes
    • Soria: yes
    • Zbur: yes
    • Gallagher: no
    • Castillo: no
    • Hadwick: no
    • Jeff Gonzalez: no
    • Flora: no
    • Alanis: no
    • Wallis: no
    • Macedo: no
    • Patterson: no
    • Lackey: no
    • Dixon: no
    • Chen: no
    • Sanchez: no
    • Bauer-Kahan: no
    • Davies: no
    • Hoover: no
    • DeMaio: no
    • Ta: no
    • Ellis: no
    • Tangipa: no
    • Ávila Farías: no
    • Gabriel: other
    • Hart: other
    • Bains: other
    • Wilson: other
    • Blanca Rubio: other
    • Ortega: other
    • Michelle Rodriguez: other
    • Patel: other
    • Nguyen: other
    • Ramos: other
    • Berman: other

  • Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]

    2025-06-25 · pass · 4-1

    Member-level votes (5)
    • Cortese: yes
    • Durazo: yes
    • Laird: yes
    • Smallwood-Cuevas: yes
    • Strickland: no

  • Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]

    2025-07-15 · pass · 11-2

    Member-level votes (13)
    • Caballero: yes
    • Wahab: yes
    • Ashby: yes
    • Wiener: yes
    • Laird: yes
    • Umberg: yes
    • Weber Pierson: yes
    • Stern: yes
    • Allen: yes
    • Arreguín: yes
    • Durazo: yes
    • Valladares: no
    • Niello: no

  • Placed on suspense file

    2025-08-18 · pass · 7-0

    Member-level votes (7)
    • Richardson: yes
    • Seyarto: yes
    • Caballero: yes
    • Cabaldon: yes
    • Dahle: yes
    • Wahab: yes
    • Grayson: yes

  • Do pass as amended

    2025-08-29 · pass · 5-2

    Member-level votes (7)
    • Richardson: yes
    • Grayson: yes
    • Wahab: yes
    • Caballero: yes
    • Cabaldon: yes
    • Dahle: no
    • Seyarto: no

  • 3rd Reading AB692 Kalra et al. By Pérez

    2025-09-10 · pass · 25-11

    Member-level votes (40)
    • Umberg: yes
    • Wiener: yes
    • Wahab: yes
    • Cortese: yes
    • Limón: yes
    • Durazo: yes
    • Archuleta: yes
    • Gonzalez: yes
    • Smallwood-Cuevas: yes
    • Grayson: yes
    • Hurtado: yes
    • Laird: yes
    • Cervantes: yes
    • Rubio: yes
    • McGuire: yes
    • Reyes: yes
    • Padilla: yes
    • Menjivar: yes
    • Pérez: yes
    • Stern: yes
    • Allen: yes
    • Caballero: yes
    • McNerney: yes
    • Ashby: yes
    • Becker: yes
    • Choi: no
    • Strickland: no
    • Grove: no
    • Niello: no
    • Jones: no
    • Dahle: no
    • Ochoa Bogh: no
    • Alvarado-Gil: no
    • Seyarto: no
    • Valladares: no
    • Cabaldon: no
    • Weber Pierson: other
    • Richardson: other
    • Arreguín: other
    • Blakespear: other

  • AB 692 Kalra Concurrence in Senate Amendments

    2025-09-12 · pass · 46-20

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

Related bills

No related bills recorded for this bill.

Official source

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB692

Attribution

Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z

Inspect retained evidence for changes recorded after evidence tracking began:

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