AB 692

  • California Assembly Bill
  • 2025-2026 Regular Session
  • Introduced in Assembly
  • Passed Assembly Jun 05, 2025
  • Passed Senate Sep 10, 2025
  • Signed by Governor Oct 13, 2025

Employment: contracts in restraint of trade.

Abstract

Existing law declares every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind to be void, except as expressly provided. Existing law provides for a system of labor standards enforcement administered by the Labor Commissioner. This bill would, for contracts entered into on or after January 1, 2026, make it unlawful to include in any employment contract, or to require a worker to execute as a condition of employment or a work relationship a contract that includes, specified contract terms, including a term that requires the worker to pay an employer, training provider, or debt collector for a debt if the worker's employment or work relationship with a specific employer terminates. The bill would declare these contracts as contracts that restrain a person from engaging in a lawful profession, trade, or business, and as void and contrary to public policy, except as provided. This bill would authorize a worker who has been subjected to the above-described prohibited conduct regarding a contract or its terms or a work representative to bring an action on behalf of that worker, other persons similarly situated, or both, in any court of competent jurisdiction. The bill would make a person who violates these provisions liable for specified civil penalties and relief.

Bill Sponsors (6)

Votes


Actions


Oct 13, 2025

California State Legislature

Approved by the Governor.

California State Legislature

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

Sep 23, 2025

California State Legislature

Enrolled and presented to the Governor at 4 p.m.

Sep 11, 2025

Assembly

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 20. Page 3340.).

Sep 10, 2025

Assembly

In Assembly. Concurrence in Senate amendments pending.

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 11. Page 2815.).

Sep 08, 2025

Senate

Read second time. Ordered to third reading.

Sep 05, 2025

Senate

Read third time and amended. Ordered to second reading.

Sep 02, 2025

Senate

Read second time. Ordered to third reading.

Aug 29, 2025

Senate

From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).

Senate

Read second time and amended. Ordered returned to second reading.

Aug 18, 2025

Senate

In committee: Referred to suspense file.

  • Referral-Committee
suspense file.

Jul 17, 2025

Senate

Read second time and amended. Re-referred to Com. on APPR.

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on APPR.

Jul 16, 2025

Senate

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

Jun 26, 2025

Senate

Read second time and amended. Re-referred to Com. on JUD.

  • Amendment-Passage
  • Reading-1
  • Reading-2
  • Referral-Committee
Com. on JUD.

Jun 25, 2025

Senate

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

Jun 18, 2025

Senate

Referred to Coms. on L., P.E. & R. and JUD.

  • Referral-Committee
Coms. on L., P.E. & R. and JUD.

Jun 09, 2025

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

Jun 05, 2025

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 47. Noes 21. Page 2112.)

May 29, 2025

Assembly

Read third time and amended. Ordered to third reading. (Page 1788.)

May 27, 2025

Assembly

Read second time. Ordered to third reading.

May 23, 2025

Assembly

Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)

Assembly

Read second time and amended. Ordered returned to second reading.

Assembly

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

May 07, 2025

Assembly

In committee: Set, first hearing. Referred to APPR. suspense file.

  • Referral-Committee
APPR. suspense file. APPR

Apr 22, 2025

Assembly

Coauthors revised.

Assembly

From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 22). Re-referred to Com. on APPR.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on APPR.

Apr 03, 2025

Assembly

From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (April 2). Re-referred to Com. on JUD.

  • Committee-Passage
  • Committee-Passage-Favorable
  • Referral-Committee
Com. on JUD.

Mar 27, 2025

Assembly

Coauthors revised.

Mar 11, 2025

Assembly

Re-referred to Com. on L. & E.

  • Referral-Committee
Com. on L. & E.

Mar 10, 2025

Assembly

From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.

Assembly

Referred to Coms. on L. & E. and JUD.

  • Referral-Committee
Coms. on L. & E. and JUD.

Feb 15, 2025

Assembly

From printer. May be heard in committee March 17.

Feb 14, 2025

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB692 HTML
02/14/25 - Introduced PDF
03/10/25 - Amended Assembly PDF
05/23/25 - Amended Assembly PDF
05/29/25 - Amended Assembly PDF
06/26/25 - Amended Senate PDF
07/17/25 - Amended Senate PDF
08/29/25 - Amended Senate PDF
09/05/25 - Amended Senate PDF
09/15/25 - Enrolled PDF
10/13/25 - Chaptered PDF

Related Documents

Document Format
04/01/25- Assembly Labor and Employment PDF
04/18/25- Assembly Judiciary PDF
05/05/25- Assembly Appropriations PDF
05/28/25- ASSEMBLY FLOOR ANALYSIS PDF
05/30/25- ASSEMBLY FLOOR ANALYSIS PDF
06/24/25- Senate Committee on Labor, Public Employment and Retirement PDF
07/13/25- Senate Judiciary PDF
08/15/25- Senate Appropriations PDF
08/29/25- Senate Appropriations PDF
09/02/25- Sen. Floor Analyses PDF
09/08/25- Sen. Floor Analyses PDF
09/10/25- ASSEMBLY FLOOR ANALYSIS PDF

Sources

Data on Open States is updated periodically throughout the day from the official website of the California State Legislature.

If you notice any inconsistencies with these official sources, feel free to file an issue.