Employment: contracts in restraint of trade.

Legislative status

1. Introduced
2. In Committee
3. Reported by Committee
4. Floor Vote Scheduled
5. Passed One Chamber
6. Passed Both Chambers
7. Sent to Executive
8. Enacted

Summary

Starting Jan. 1 2026, any employment agreement that requires a worker to repay an employer, training provider, or debt collector, or to pay penalties when the job ends, is illegal unless it falls under specific exemptions. The contract is void as a restraint of trade, and workers can sue for damages, injunctive relief, and attorney fees.

AI-generated summary — may be incomplete or inaccurate. Verify against the official bill text.

Vote

Read third time. Passed. Ordered to the Senate. (Ayes 47. Noes 21. Page 2112.) · Jun 5, 2025

Hearings

• Appropriations Committee Hearing
  Appropriations · Aug 29, 2025
• Appropriations Committee Hearing
  Appropriations · Aug 18, 2025
• Judiciary Committee Hearing
  Judiciary · Jul 15, 2025
• Labor, Public Employment and Retirement Committee Hearing
  Labor, Public Employment and Retirement · Jun 25, 2025
• Appropriations Committee Hearing
  Appropriations · May 23, 2025

History

1. Oct 13, 2025Chaptered by Secretary of State - Chapter 703, Statutes of 2025.
2. Oct 13, 2025Approved by the Governor.
3. Sep 23, 2025Enrolled and presented to the Governor at 4 p.m.
4. Sep 11, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 20. Page 3340.).
5. Sep 10, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 11. Page 2815.).
6. Sep 10, 2025In Assembly. Concurrence in Senate amendments pending.
7. Sep 8, 2025Read second time. Ordered to third reading.
8. Sep 5, 2025Read third time and amended. Ordered to second reading.
9. Sep 2, 2025Read second time. Ordered to third reading.
10. Aug 29, 2025Read second time and amended. Ordered returned to second reading.
11. Aug 29, 2025From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29).
12. Aug 18, 2025In committee: Referred to suspense file.

The 12 most recent of 34 recorded actions.

Sponsors

• Kalra · sponsor
• Cortese
• Lee
• Pérez
• Rogers
• Sharp-Collins

Bill text

Opens the legislature’s own copy.

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