As of January 1, 2026, California’s AB 692 drastically limits the use of “Stay-or-Pay” or Training Repayment Assistance Programs (TRAP) agreements—contracts that require employees to reimburse expenses like training or relocation upon early departure. Employers need to act now to understand the law and adjust their strategies.
Watch this episode from our Employer Rapport for practical insights to help you navigate California’s AB 692, including how to:
- Break down AB 692’s core prohibitions and assess enforcement risks.
- Determine which agreements can survive—and the strict conditions they must meet.
- Revise sign-on bonus, relocation and tuition repayment terms to stay compliant.
- Anticipate ripple effects like tax implications and impacts on equity clawbacks, wage advances and commission plans.
- Track emerging trends as other states and regulators target TRAP agreements.
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