Navigating California's Assembly Bill 692 and Implications for Provider Employment Arrangements

• January 20, 2026

• Rebecca Langford , Stout
• Joseph Keillor , Baker Donelson Bearman Caldwell and Berkowitz PC

The California legislature recently passed Assembly Bill 692 (AB 692), which went into effect January 1, 2026 as part of both the California Business and Professions Code and California Labor Code. The codification of AB 692 will introduce restrictions for employment arrangements. Specifically, for employment contracts entered into after January 1, 2026, the new law will make it “unlawful to include in any employment contract, or to require a worker to execute as a condition of employment or a work relationship a contract that includes specified contract terms, including a term that requires the worker to pay an employer, training provider, or debt collector for a debt if the worker’s employment or work relationship with a specific employer terminates."

ARTICLE TAGS

• In-House Counsel Practice Group
• Fraud and Compliance
• Labor and Employment