Compliance Stuff

Recent legislative developments in multiple states have targeted “ stay-or-pay” clauses—contract terms that obligate employees to repay certain bonuses and educational or training expenses if the employee does not stay for a required period of time. Historically, these provisions were intended to safeguard employer investments in training and onboarding. However, state lawmakers are increasingly viewing them as restrictive and unfair to workers. Employers, particularly those with employees across multiple states, should carefully examine current agreements and prepare for compliance with these evolving state standards to mitigate risk and maintain lawful practices. California Effective January 1, 2026,  California Assembly Bill 692 (AB 692)  prohibits employment contracts that require employees to repay employment related costs upon early separation. If the employer violates the law, they may be exposed to penalties, fees, or costs such as liquidated damages. The California le...

California lawmakers were busy this year, and Gov. Gavin Newsom just signed many bills into law that will impact the workplace starting in 2026. Here is a snapshot guide of some of the top new workplace laws taking effect January 1 (except as otherwise noted), plus links to our deeper dive insights, which include practical compliance tips for employers. We’ll also cover a few key vetoes that will give you a sigh of relief. Top 11 California Workplace Laws Taking Effect in 2026 (and Beyond) 1. Large AI Transparency Law for Frontier Models ( SB 53 ) The Transparency in Frontier Artificial Intelligence Act is the nation’s first comprehensive attempt to require safety and transparency reporting for the most powerful artificial intelligence systems. This move comes one year after Gov. Newsom vetoed a broader AI safety bill that drew criticism for imposing heavy-handed mandates. While the new law represents a strategic shift, it includes core requirements for frontier developers, as well as ...

Last week, the California legislature passed a law that seeks to ban many “stay-or-pay” contracts, including training repayment agreements, as part of the state’s continued emphasis on employee mobility. But the bill excludes from the prohibition some of the most common arrangements, like tuition reimbursement and retention bonus repayment , so long as employers stay within new statutory guardrails. Assuming the governor signs the bill into law (which we expect), the new prohibitions will apply to contracts entered on or after January 1, 2026 – and workers who feel aggrieved can file private lawsuits and seek civil penalties for violations. Here’s what employers need to know to prepare. What Agreements Does AB 692 Prohibit? Recall that the previous General Counsel for the National Labor Relations Board  tried to crack down on “stay-or-pay” provisions through an enforcement memorandum last year,  but that memorandum was  rescinded by the new acting GC in February . The ...

The California Legislature just wrapped up its work for the year, and now all eyes turn to Governor Newsom, who has until October 12 to sign or veto each of the bills sent to his desk. Any bills signed into law will take effect on January 1, 2026. What are the top bills that employers should be monitoring? 12 Workplace Bills That Await the Governor’s Signature or Veto AI, Privacy, and Workplace Surveillance The hottest topic for legislative discussion and action in 2025 continued to be artificial intelligence and related technology issues. AI alone accounted for the focus of more than three dozen bills considered this year, and California may soon join the growing list of states to enact their own laws related to the use of AI by businesses. Several bills that would impact employers directly made it to Newsom’s desk and are now awaiting further action. These include: SB 7 (“No Robo Bosses”)  – SB 7 is specific to employment-related decisions using AI technology and automated decis...