California AB1697 prohibits certain debt repayment obligations in employment contracts entered into after January 1, 2027.
California AB1697 amends the Business and Professions Code to prohibit including certain debt repayment obligations in employment contracts entered into on or after January 1, 2027. Specifically, it is unlawful to require a worker to repay a debt if their employment or work relationship with a specific employer terminates. This prohibition does not apply to certain loan repayment assistance programs, contracts related to the repayment of tuition for a transferable credential, apprenticeship programs, or contracts for the lease, financing, or purchase of residential property.
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