CaliforniaAB 6922025-2026 Regular SessionHouseWALLET

Employment.

Sponsored By: Ash Kalra (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Workers can sue for at least $5,000

If someone uses a banned term, you or a worker representative can sue on your own or for a group. The liable party must pay your actual damages or $5,000 per worker, whichever is more. Courts can also order the practice to stop and award reasonable attorney’s fees and costs. For contracts signed on or after January 1, 2026, illegal terms are void and unenforceable. These remedies add to, not replace, other rights under California labor and consumer laws.

No quit fees when you leave a job

Beginning January 1, 2026, contracts signed on or after that date cannot make you repay money when you leave a specific employer. Employers, training providers, and debt collectors cannot restart collections or end a forbearance because you left. They cannot charge quit fees, training or retraining costs, visa costs, liquidated damages, or lost profits or goodwill tied to your separation. This applies to employees, job applicants, and freelance workers.

Narrow exceptions for tuition and sign-on bonuses

A few narrow exceptions apply to contracts entered on or after January 1, 2026. Government loan repayment or forgiveness programs are allowed. A separate tuition repayment deal for a transferable credential is allowed only if it is not a job condition, repayment is capped at the employer’s actual cost, it is prorated, does not accelerate, and you do not repay if you are let go, unless for misconduct. Approved apprenticeship enrollment agreements are allowed. Separate sign‑on or other unearned pay deals are allowed only if they are in writing, give you at least five business days to consult a lawyer, are interest‑free, prorated, last no more than two years, let you take the money at the end, and require repayment only if you quit early or are fired for misconduct. Housing leases, financing, and home purchases are also outside this ban.

Sponsors & Cosponsors

Sponsor

  • Ash Kalra

    Democratic • House

Cosponsors

  • Dave Cortese

    Democratic • Senate

  • Alex Lee

    Democratic • House

  • Sasha Renée Pérez

    Democratic • Senate

  • Chris Rogers

    Democratic • House

  • LaShae Sharp-Collins

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 167 • No: 63

House vote 9/11/2025

Item 37 — Assembly AFLOOR

Yes: 46 • No: 20

Senate vote 9/10/2025

Item 220 — Senate SFLOOR

Yes: 25 • No: 11

legislature vote 8/29/2025

Vote in CS61

Yes: 5 • No: 2

legislature vote 8/18/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote 7/15/2025

Vote in CS53

Yes: 11 • No: 2

legislature vote 6/25/2025

Vote in CS56

Yes: 4 • No: 1

House vote 6/5/2025

Item 26 — Assembly AFLOOR

Yes: 47 • No: 21

legislature vote 5/23/2025

Vote in CX25

Yes: 10 • No: 3

legislature vote 4/22/2025

Vote in CX13

Yes: 7 • No: 3

legislature vote 4/2/2025

Vote in CX14

Yes: 5 • No: 0

Actions Timeline

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

    10/13/2025Senate
  2. Approved by the Governor.

    10/13/2025legislature
  3. Enrolled and presented to the Governor at 4 p.m.

    9/23/2025legislature
  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 20. Page 3340.).

    9/11/2025House
  5. In Assembly. Concurrence in Senate amendments pending.

    9/10/2025House
  6. Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 11. Page 2815.).

    9/10/2025Senate
  7. Read second time. Ordered to third reading.

    9/8/2025Senate
  8. Read third time and amended. Ordered to second reading.

    9/5/2025Senate
  9. Read second time. Ordered to third reading.

    9/2/2025Senate
  10. Read second time and amended. Ordered returned to second reading.

    8/29/2025Senate
  11. From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).

    8/29/2025Senate
  12. In committee: Referred to suspense file.

    8/18/2025Senate
  13. Read second time and amended. Re-referred to Com. on APPR.

    7/17/2025Senate
  14. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15).

    7/16/2025Senate
  15. Read second time and amended. Re-referred to Com. on JUD.

    6/26/2025Senate
  16. From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 25).

    6/25/2025Senate
  17. Referred to Coms. on L., P.E. & R. and JUD.

    6/18/2025Senate
  18. In Senate. Read first time. To Com. on RLS. for assignment.

    6/9/2025Senate
  19. Read third time. Passed. Ordered to the Senate. (Ayes 47. Noes 21. Page 2112.)

    6/5/2025House
  20. Read third time and amended. Ordered to third reading. (Page 1788.)

    5/29/2025House
  21. Read second time. Ordered to third reading.

    5/27/2025House
  22. Read second time and amended. Ordered returned to second reading.

    5/23/2025House
  23. From committee: Amend, and do pass as amended. (Ayes 10. Noes 3.) (May 23).

    5/23/2025House
  24. Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)

    5/23/2025House
  25. In committee: Set, first hearing. Referred to APPR. suspense file.

    5/7/2025House

Bill Text

  • Chaptered

    10/13/2025

  • Enrolled

    9/15/2025

  • Amended Senate

    9/5/2025

  • Amended Senate

    8/29/2025

  • Amended Senate

    7/17/2025

  • Amended Senate

    6/26/2025

  • Amended Assembly

    5/29/2025

  • Amended Assembly

    5/23/2025

  • Amended Assembly

    3/10/2025

  • Introduced

    2/14/2025

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