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California Bill Would Proscribe Agreements Requiring Employees to Repay Certain Debts to Employers When Leaving Employment
Categories: Duty of Loyalty / Fiduciary Duty, Litigation
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[Update (10/16/25): Governor Newsom signed the bill into law on October 13, 2025, and it takes effect on January 1, 2026.]

California has long had the nation’s most stringent laws against restrictive covenants. On September 15, 2025, the California legislature increased the potential scope of those laws, and whether by intention or mistake, set the state on a path to change existing laws on retention bonuses for current employees.

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