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The ‘Stay-or-Pay’ Reset: California Delays AB 692 and Expands Permissible Repayment Arrangements

By Ellen M. Bandel & Brian B. Kelly on October 20, 2026
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On Sept. 30, 2026, Gov. Gavin Newsom signed Assembly Bill (AB) 1697, delaying California’s restrictions on employment agreements that require workers to repay certain bonuses, training costs, relocation expenses, or other payments at the end of employment. Originally scheduled to apply to agreements entered into beginning Jan. 1, 2026, the restrictions under AB 692 will now apply instead to agreements entered into only on or after Jan. 1, 2027.

AB 692 broadly restricted repayment obligations triggered by the end of employment (“Repayment Arrangements”), including those commonly used for bonus, training, and relocation payments. While AB 1697 preserves AB 692’s overall framework and policy objective of limiting arrangements that may discourage employee mobility, it provides employers with additional time to review existing practices and more options for structuring repayment obligations.

Continue reading the full GT Alert.

Photo of Ellen M. Bandel Ellen M. Bandel

Ellen M. Bandel is a trusted advisor and experienced attorney in the Labor and Employment practice, counseling both unionized and nonunion employers on all aspects of employment law. She provides strategic and compliance-focused guidance on workplace matters including recruitment, employee performance and discipline,

…

Ellen M. Bandel is a trusted advisor and experienced attorney in the Labor and Employment practice, counseling both unionized and nonunion employers on all aspects of employment law. She provides strategic and compliance-focused guidance on workplace matters including recruitment, employee performance and discipline, workforce reductions, leaves of absence, wage and hour compliance, disability accommodations, and risk mitigation for terminations. Ellen is a go-to resource for drafting and implementing employee handbooks, personnel policies, employment agreements, non-competes, and severance agreements, and regularly conducts workplace audits, investigations, and training to ensure discrimination and harassment-free environments. Her experience spans the full employment life cycle and covers a range of industries and geographies, with particular depth in California law and “trending” state and local legislation, such as paid sick leave, paid family and medical leaves, pay transparency, pre-employment restrictions, and workplace violence prevention mandates.

Ellen is also frequently engaged to support employment-related issues in mergers and acquisitions, including post-merger employee integration.

Ellen is recognized for her practical, tailored approaches to complex employment issues and her ability to work closely with business and HR leaders to develop actionable strategies that fit each client’s unique needs and culture.

She is also a co-author of PLI’s California Employment Law treatise and a panelist at PLI’s annual Cutting-Edge Employment Law Issues conference, reflecting her thought leadership in the field.

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Photo of Brian B. Kelly Brian B. Kelly

Brian serves as a trusted partner to business and HR leaders on their most complex employment practice issues, by identifying multiple practical approaches and the roadmap to implement them. Brian observes each client’s unique legal needs and business culture and tailors his advice…

Brian serves as a trusted partner to business and HR leaders on their most complex employment practice issues, by identifying multiple practical approaches and the roadmap to implement them. Brian observes each client’s unique legal needs and business culture and tailors his advice accordingly.

Brian’s employment counseling experience spans companies across various industries and U.S. geographies (with an enhanced focus on California), and covers all aspects of the employment life cycle, including hirings, terminations (including large-scaled reductions in force), leaves of absence, agreements, policies, wage-and-hour, incentive compensation programs, worker classification, restrictive covenants, equal employment opportunity, workforce strategy, employee complaints and disputes, investigations, and more.

Additionally, Brian has worked on more than one hundred mergers-and-acquisitions, providing in-depth diligence and pre- and post-closing workforce restructuring advice on both the buy- and sell-side.

Prior to joining Greenberg Traurig, Brian was most recently the Global Head of Employment Law at WeWork, where he managed a team of five employment attorneys who were responsible for advising on employment matters across approximately 25 countries.

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  • Posted in:
    Employment & Labor
  • Blog:
    GT L&E Blog
  • Organization:
    Greenberg Traurig, LLP
  • Article: View Original Source

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