Bill Sponsor
California Assembly Bill 692
Session 20252026
Employment: contracts in restraint of trade.
Became Law
Became Law
Became Law on Oct 13, 2025
Sponsor
First Action
Feb 14, 2025
Latest Action
Oct 13, 2025
Origin Chamber
Assembly
Type
Bill
Bill Number
692
State
California
Session
20252026
Sponsorship by Party
Democrat
Author
Democrat
Coauthor
Democrat
Coauthor
Democrat
Coauthor
Democrat
Coauthor
Assembly Votes (5)
Senate Votes (5)
Summary
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.
Documents (12)
10/13/2025
California State Legislature
Chaptered by Secretary of State - Chapter 703, Statutes of 2025.
10/13/2025
California State Legislature
Approved by the Governor.
09/23/2025
California State Legislature
Enrolled and presented to the Governor at 4 p.m.
09/11/2025
Assembly
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 20. Page 3340.).
09/10/2025
Assembly
In Assembly. Concurrence in Senate amendments pending.
09/10/2025
Senate
Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 11. Page 2815.).
09/08/2025
Senate
Read second time. Ordered to third reading.
09/05/2025
Senate
Read third time and amended. Ordered to second reading.
09/02/2025
Senate
Read second time. Ordered to third reading.
08/29/2025
Senate
Read second time and amended. Ordered returned to second reading.
08/29/2025
Senate
From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).
08/18/2025
Senate
In committee: Referred to suspense file.
07/17/2025
Senate
Read second time and amended. Re-referred to Com. on APPR.
07/16/2025
Senate
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15).
06/26/2025
Senate
Read second time and amended. Re-referred to Com. on JUD.
06/25/2025
Senate
From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 25).
06/18/2025
Senate
Referred to Coms. on L., P.E. & R. and JUD.
06/09/2025
Senate
In Senate. Read first time. To Com. on RLS. for assignment.
06/05/2025
Assembly
Read third time. Passed. Ordered to the Senate. (Ayes 47. Noes 21. Page 2112.)
05/29/2025
Assembly
Read third time and amended. Ordered to third reading. (Page 1788.)
05/27/2025
Assembly
Read second time. Ordered to third reading.
05/23/2025
Assembly
Read second time and amended. Ordered returned to second reading.
05/23/2025
Assembly
From committee: Amend, and do pass as amended. (Ayes 10. Noes 3.) (May 23).
05/23/2025
Assembly
Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)
05/07/2025
Assembly
In committee: Set, first hearing. Referred to APPR. suspense file.
04/22/2025
Assembly
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 22). Re-referred to Com. on APPR.
04/22/2025
Assembly
Coauthors revised.
04/03/2025
Assembly
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (April 2). Re-referred to Com. on JUD.
03/27/2025
Assembly
Coauthors revised.
03/11/2025
Assembly
Re-referred to Com. on L. & E.
03/10/2025
Assembly
From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.
03/10/2025
Assembly
Referred to Coms. on L. & E. and JUD.
02/15/2025
Assembly
From printer. May be heard in committee March 17.
02/14/2025
Assembly
Read first time. To print.
Sources
Record Created
Feb 15, 2025 5:55:50 AM
Record Updated
Nov 19, 2025 8:42:55 AM