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Committee advances bill to ban employer "stay-or-pay" debt contracts for job training
Summary
AB 692 would prohibit employers from requiring workers to repay training or onboarding costs if they leave, are laid off or fired; proponents said the practice traps workers, opponents warned the bill might bar legitimate voluntary programs.
Assemblymember Lehi presented AB 692, legislation aimed at ending "stay-or-pay" or "debt trap" contracts that require workers to repay an employer for training, equipment or other onboarding costs if they leave before completing a specified time period. The author said such provisions are common in sectors from health care to retail and can require repayments of thousands of dollars, chilling workers…
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