Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that prohibits employment contracts that require the worker to repay an employer, training provider, or debt collector for a debt (such as training costs), if the worker's employment ends in California.

Highlights:

• Defines contract as a promise, undertaking, contract, or agreement, whether written or oral, express or implied (Sec. 1).

• Defines transferable credential as a degree that is offered by a third-party organization that is accredited and authorized to operate in that state, but not required for a worker's current employment, and is transferable for employment beyond an individual's current employer (Sec. 1).

• Prohibits contracts that began in or after January 1, 2026, to include any employment contract (Sec. 1).

• Specifies that contracts involving loan repayment assistance by a federal, state, or local agency are not applicable (Sec. 1).

• Specifies that violation of the section can be liable for damages sustained by employees, $5000 per worker, and attorney fees and costs (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that prohibits employment contracts that require the worker to repay an employer, training provider, or debt collector for a debt (such as training costs), if the worker's employment ends in California.

Highlights:

• Defines contract as a promise, undertaking, contract, or agreement, whether written or oral, express or implied (Sec. 1).

• Defines transferable credential as a degree that is offered by a third-party organization that is accredited and authorized to operate in that state, but not required for a worker's current employment, and is transferable for employment beyond an individual's current employer (Sec. 1).

• Prohibits contracts that began in or after January 1, 2026, to include any employment contract (Sec. 1).

• Specifies that contracts involving loan repayment assistance by a federal, state, or local agency are not applicable (Sec. 1).

• Specifies that violation of the section can be liable for damages sustained by employees, $5000 per worker, and attorney fees and costs (Sec. 2).

Full Bill Text