Bill Text: CA AB747 | 2023-2024 | Regular Session | Amended
Bill Title: Business: unlawful employee contracts and requirements.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Failed) 2024-02-01 - Died on third reading file. [AB747 Detail]
Download: California-2023-AB747-Amended.html
Amended
IN
Assembly
March 20, 2023 |
Introduced by Assembly Member McCarty |
February 13, 2023 |
LEGISLATIVE COUNSEL'S DIGEST
(2)
(3)Existing law regulates various aspects of employment, including the payment of wages to specified provisions in employment contracts. Existing law creates the Division of Labor Standards Enforcement, which is under the direction of the Labor Commissioner, and generally commits to the commissioner the authority and responsibility for the
enforcement of employment laws.
Existing
This bill would prohibit an employer, as defined, from requiring an employee, as defined, to reimburse, pay, or repay, including upon termination of employment, costs for trainings, as defined, related to the employee’s responsibilities and duties related to their employment.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6090.5.5 is added to the Business and Professions Code, to read:6090.5.5.
(a) It is cause for suspension, disbarment, or other discipline for any licensee to enter into with an employee or prospective employee, present an employee or prospective employee as a term of employment, or attempt to enforce any employee contract or other agreement that violates SectionSEC. 2.
Section 16601 of the Business and Professions Code is amended to read:16601.
(a) Any person who sells the goodwill of a business, any owner of a business entity selling or otherwise disposing of all of their ownership interest in the business entity, or any owner of a business entity that sells (a) all or substantially all of its operating assets together with the goodwill of the business entity, (b) all or substantially all of the operating assets of a division or a subsidiary of the business entity together with the goodwill of that division or subsidiary, or (c) all of the ownership interest of any subsidiary, may agree with the buyer to refrain from carrying on a similar business within a specified geographic area in which the business so sold, or that of the business entity, division, or subsidiary has been carried on, if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein.SEC. 3.
Section 16608 is added to the Business and Professions Code, immediately following Section 16607, to read:16608.
(a) For purposes of this section, the following definitions apply:SEC. 4.
Section 16609 is added to the Business and Professions Code, immediately following Section 16608, to read:16609.
An employer shall not impose any penalty, fee, or cost on an employee or independent contractor for terminating the employment relationship, including, but not limited to, replacement hire fee, retraining fee, reimbursement for immigration or visa-related costs, liquidated damages, lost goodwill, or lost profit.SEC. 5.
Section 16610 is added to the Business and Professions Code, immediately following Section 16609, to read:16610.
(a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce anySEC. 4.SEC. 6.
Section 925 of the Labor Code is amended to read:925.
(a) An employer shall not require an employee who primarily resides and works in California, as a condition of employment, to agree to a provision that would do either of the following:(a)An employer shall not require an employee to reimburse, pay, or repay, including upon termination of employment, costs for any training related to the employee’s responsibilities and duties related to their employment.
(b)For purposes of this section, the following definitions apply:
(1)“Employee” includes, but is not limited to, a full-time or part-time employee and independent contractor.
(2)“Employer” means any person or entity that employs employees.
(3)(A)“Training” means any instruction or course the employer requires the employee to complete as a prerequisite to the employee fulfilling their responsibilities and duties related to their employment.
(B)“Training” does not mean or include any required training to obtain or maintain necessary professional licenses and excludes required coursework, apprenticeship programs, work experience education programs, or other similar coursework and programs required before employment of the employee.