CA AB692

Prohibits employment contracts entered into on or after January 1, 2026 from requiring workers to repay debts to employers, training providers, or debt collectors if their employment terminates, or imposing penalties, fees, or costs upon termination

Declares such contract terms void as restraints on lawful profession, trade, or business under California law

Exempts government loan repayment/forgiveness programs, state-approved apprenticeships, transferable credential tuition repayment (with specific consumer protections), and sign-on bonuses with prorated repayment terms and worker safeguards

Allows workers or their representatives to file civil lawsuits on behalf of themselves or similarly situated individuals against violators

Establishes penalties of actual damages or $5,000 per worker (whichever is greater), plus injunctive relief and reasonable attorney's fees and costs