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Thursday, November 20, 2025

California’s October State Law Updates: What Employers Need to Know - Employment Law Worldview

Throughout October 2025, California Governor Gavin Newsom signed multiple employment-related Bills into law. These new measures address a wide range of workplace-related matters, including regulations aimed at the use of artificial intelligence, updates on paid leave, and amendments to mediation procedures. While some of these Bills will be subject to legal challenges that delay or block their application, many took effect immediately or will become effective on January 1, 2026. Accordingly, California employers are encouraged to begin updating policies, training programs, and internal templates to ensure compliance with these requirements.

  • AB 692 prohibits contractual provisions purporting to require a departing employee to repay any debt to the employer.

AB 692, signed into law on October 13, 2025, makes it unlawful for California employers to include specified provisions in any employment contract entered into on or after January 1, 2026. Specifically, AB 692 prohibits any term that would require the worker to pay an employer, training provider, or debt collector for a debt if the worker’s employment or work relationship terminates. Exceptions exist for certain agreements, including those involving discretionary bonuses or relocation payments, provided they meet set criteria, including: (1) repayment terms must be in a separate agreement from the primary employment contract; (2) the worker must be advised of the right to consult an attorney and given at least 5...



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