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Website title: Labor & Employment Law Firm | Title IX Law Firm | Hirschfeld Kraemer

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Effective January 1, 2026, California’s Assembly Bill 692 will continue the state’s longstanding trend of broadening worker mobility protections by prohibiting most forms of “repayment on separation” provisions in new employment agreements. The new law, AB 692, directly targets contractual provisions that require workers to repay training expenses, tuition, bonuses, or other...


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California employers have long understood the state’s hostility toward contractual restraints on employee mobility. While non-competes are expressly prohibited, enforcement of related restrictions—such as no-poach and employee non-solicitation provisions—was historically uneven. Many disputes played out quietly in private litigation or arbitration, if they surfaced at all.


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The Federal Trade Commission (FTC) has formally withdrawn its defense of the nationwide non-compete ban, a signature rule of the Biden-era agency. The ban, intended to curb restrictive employment contracts and enhance worker mobility, faced immediate legal challenges—most notably from the U.S. Chamber of Commerce and other business coalitions—which questioned the FTC’s author...


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