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Bill would ban employer 'stay‑or‑pay' debt agreements that bind workers, backers say
Summary
AB 692 would void employer debt agreements that require workers to repay training or other costs if they leave their job. Supporters cited cases across industries where such contracts trapped workers; business groups urged caution and pointed to existing statutes they say address the issue.
Assemblymember Correa (presenting AB 692) told the committee the bill would "end the exploitative practice of employers coercing workers into debt agreements" often described as "stay or pay" contracts. The measure would prohibit employer debt agreements that require workers to repay employers if they leave, and void such agreements as unlawful contracts.
Supporters including the California Nurses…
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