California AB1697 amends employment contract laws to prevent "stay-or-pay" provisions penalizing workers for leaving their jobs.

California AB1697 amends existing laws to prohibit certain repayment obligations in employment contracts that penalize workers for leaving their jobs. The bill specifies that contracts entered into on or after January 1, 2027, cannot require workers to repay employers for advanced payments of paid time off, tuition for transferable credentials, or other costs if their employment ends. It also prohibits contracts that impose penalties, fees, or costs on workers for terminating their employment.

California AB1697 amends employment contract laws to prevent "stay-or-pay" provisions penalizing workers for leaving their jobs.

California AB1697 amends existing laws to prohibit certain repayment obligations in employment contracts that penalize workers for leaving their jobs. The bill specifies that contracts entered into on or after January 1, 2027, cannot require workers to repay employers for advanced payments of paid time off, tuition for transferable credentials, or other costs if their employment ends. It also prohibits contracts that impose penalties, fees, or costs on workers for terminating their employment.