On Sept. 30, 2026, Gov. Gavin Newsom signed Assembly Bill (AB) 1697, delaying California’s restrictions on employment agreements that require workers to repay certain bonuses, training costs, relocation expenses, or other payments at the end of employment. Originally scheduled to apply to agreements entered into beginning Jan. 1, 2026, the restrictions under AB 692 will now apply instead to agreements entered into only on or after Jan. 1, 2027.
AB 692 broadly restricted repayment obligations triggered by the end of employment (“Repayment Arrangements”), including those commonly used for bonus, training, and relocation payments. While AB 1697 preserves AB 692’s overall framework and policy objective of limiting arrangements that may discourage employee mobility, it provides employers with additional time to review existing practices and more options for structuring repayment obligations.