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Committee advances bill to prohibit employer ‘stay‑or‑pay’ debt agreements
Summary
AB 692 would void employer debt agreements that require workers to repay training or onboarding costs if they leave; nurses and worker‑rights groups described cases of coercive debt contracts, while business groups expressed concern about scope and enforcement; the measure passed to the Judiciary Committee.
An author identified in the hearing introduced AB 692 (presented in the transcript as AB 6 92), a bill to prohibit employer‑imposed debt agreements commonly called ‘‘stay‑or‑pay’’ or ‘‘debt traps.’’ The bill would void agreements that require a worker to repay an employer for training, onboarding, equipment, or other costs if the worker leaves employment, and would make such agreements unlawful.
Sandy Redding, president of the California Nurses Association and a long‑time operating room nurse, testified that debt agreements are…
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