CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 747Introduced by Assembly Member McCartyFebruary 13, 2023 An act to amend Section 16601 of, and to add Sections 6090.5.5 and 16608 to, the Business and Professions Code, and to amend Section 925 of, and to add Chapter 4.1 (commencing with Section 1058) to Part 3 of Division 2 of, the Labor Code, relating to business.LEGISLATIVE COUNSEL'S DIGESTAB 747, as introduced, McCarty. Business: unlawful employee contracts and requirements.(1) Existing law provides that every contract that restrains anyone from engaging in a lawful profession, trade, or business of any kind is, to that extent, void, except as provided. Existing law authorizes 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 specified assets or ownership interests to 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. Existing law defines ownership interest as a partnership interest, membership interest, or a capital stockholder, as described.This bill would modify the definition of ownership interest to require the partnership interest, membership interest, or capital stock to be more than a 10% interest of the total partnership interest, more than a 10% interest of the total membership interest, or more than 10% of the total shares of ownership of the entity, respectively.This bill would prohibit an employer, as defined, from entering into, presenting an employee, as defined, or prospective employee as a term of employment, or attempting to enforce any covenant not to compete, as defined, that is void, as described. The bill would provide that an employer that violates that provision is liable for actual damages and an additional penalty of $5,000 per employee or prospective employee who is harmed by the violation. The bill would authorize an employee or prospective employee to bring an action for injunctive relief and for the recovery of actual damages and penalties and would provide that a prevailing employee or prospective employee is entitled to recover reasonable costs and attorneys fees.(2) Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. Existing law provides that it is cause for suspension, disbarment, or other discipline for any licensee, whether acting on their own behalf or on behalf of someone else, whether or not in the context of litigation, to solicit, agree, or seek agreement that, among other things, misconduct or the terms of a settlement of a claim for misconduct shall not be reported to the State Bar.This bill would provide that 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 the above-described prohibition on covenants not to compete.(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 law prohibits an employer from requiring an employee who primarily resides and works in the state to agree, as a condition of employment, to a provision that would require the employee to adjudicate outside of the state a claim arising in the state or would deprive the employee of the substantive protection of state law with respect to a controversy arising in the state. Existing law provides that this prohibition does not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied.This bill would provide that, for a contract entered into, modified, or extended on or after January 1, 2024, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.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 employees responsibilities and duties related to their employment.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe 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 Section 16608.(b) For purposes of this section, employee includes, but is not limited to, a full-time or part-time employee and independent contractor.SEC. 2. Section 16601 of the Business and Professions Code is amended to read:16601. (a) Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her 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, so long as if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein. For(b) For the purposes of this section, business the following definitions apply:(1) Business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.For the purposes of this section, owner(2) Owner of a business entity means any partner, in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), or any member, in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or any owner of capital stock, in the case of a business entity that is a corporation.For the purposes of this section, ownership(3) Ownership interest means a any of the following:(A) A partnership interest, in the case of a business entity that is a partnership (including partnership, including a limited partnership a limited liability partnership), a partnership, that is more than a 10-percent interest of the total partnership interest of the entity.(B) A membership interest, in the case of a business entity that is a limited liability company (including company, including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or a series, that is more than a 10-percent interest of the total membership interest of the entity.(C) A capital stockholder, stock, in the case of a business entity that is a corporation. corporation, that is more than 10-percent of the total shares of ownership of the corporation.For the purposes of this section, subsidiary(4) Subsidiary means any business entity over which the selling business entity has voting control or from which the selling business entity has a right to receive a majority share of distributions upon dissolution or other liquidation of the business entity (or has both voting control and a right to receive these distributions.)SEC. 3. Section 16608 is added to the Business and Professions Code, immediately following Section 16607, to read:16608. (a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce any covenant not to compete that is void under this chapter.(b) (1) An employer that violates this section is liable for actual damages and an additional penalty of five thousand dollars ($5,000) per employee or prospective employee who is harmed by the violation. (2) An employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this section. In addition to these remedies, a prevailing employee or prospective employee in any action based on a violation of this section is entitled to recover reasonable costs and attorneys fees.(c) For purposes of this section, the following definitions apply:(1) Covenant not to compete means any provision of any contract or other agreement that restrains anyone from engaging in a lawful profession, trade, or business of any kind.(2) Employee includes, but is not limited to, a full-time or part-time employee and independent contractor.(3) Employer means any person or entity that employs employees.SEC. 4. 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:(1) Require the employee to adjudicate outside of California a claim arising in California.(2) Deprive the employee of the substantive protection of California law with respect to a controversy arising in California.(b) Any provision of a contract that violates subdivision (a) is voidable by the employee, and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in California and California law shall govern the dispute.(c) In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing his or her their rights under this section reasonable attorneys fees.(d) For purposes of this section, adjudication adjudication includes litigation and arbitration.(e) (1) This section shall not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied. For purposes of this subdivision, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.(2) The amendments made by the act adding this paragraph shall apply to a contract entered into, modified, or extended on or after January 1, 2024.(f) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.SEC. 5. Chapter 4.1 (commencing with Section 1058) is added to Part 3 of Division 2 of the Labor Code, to read: CHAPTER 4.1. Training Costs and Debt1058. (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 employees 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.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 747Introduced by Assembly Member McCartyFebruary 13, 2023 An act to amend Section 16601 of, and to add Sections 6090.5.5 and 16608 to, the Business and Professions Code, and to amend Section 925 of, and to add Chapter 4.1 (commencing with Section 1058) to Part 3 of Division 2 of, the Labor Code, relating to business.LEGISLATIVE COUNSEL'S DIGESTAB 747, as introduced, McCarty. Business: unlawful employee contracts and requirements.(1) Existing law provides that every contract that restrains anyone from engaging in a lawful profession, trade, or business of any kind is, to that extent, void, except as provided. Existing law authorizes 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 specified assets or ownership interests to 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. Existing law defines ownership interest as a partnership interest, membership interest, or a capital stockholder, as described.This bill would modify the definition of ownership interest to require the partnership interest, membership interest, or capital stock to be more than a 10% interest of the total partnership interest, more than a 10% interest of the total membership interest, or more than 10% of the total shares of ownership of the entity, respectively.This bill would prohibit an employer, as defined, from entering into, presenting an employee, as defined, or prospective employee as a term of employment, or attempting to enforce any covenant not to compete, as defined, that is void, as described. The bill would provide that an employer that violates that provision is liable for actual damages and an additional penalty of $5,000 per employee or prospective employee who is harmed by the violation. The bill would authorize an employee or prospective employee to bring an action for injunctive relief and for the recovery of actual damages and penalties and would provide that a prevailing employee or prospective employee is entitled to recover reasonable costs and attorneys fees.(2) Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. Existing law provides that it is cause for suspension, disbarment, or other discipline for any licensee, whether acting on their own behalf or on behalf of someone else, whether or not in the context of litigation, to solicit, agree, or seek agreement that, among other things, misconduct or the terms of a settlement of a claim for misconduct shall not be reported to the State Bar.This bill would provide that 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 the above-described prohibition on covenants not to compete.(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 law prohibits an employer from requiring an employee who primarily resides and works in the state to agree, as a condition of employment, to a provision that would require the employee to adjudicate outside of the state a claim arising in the state or would deprive the employee of the substantive protection of state law with respect to a controversy arising in the state. Existing law provides that this prohibition does not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied.This bill would provide that, for a contract entered into, modified, or extended on or after January 1, 2024, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.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 employees responsibilities and duties related to their employment.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 747
Introduced by Assembly Member McCartyFebruary 13, 2023
Introduced by Assembly Member McCarty
February 13, 2023
An act to amend Section 16601 of, and to add Sections 6090.5.5 and 16608 to, the Business and Professions Code, and to amend Section 925 of, and to add Chapter 4.1 (commencing with Section 1058) to Part 3 of Division 2 of, the Labor Code, relating to business.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 747, as introduced, McCarty. Business: unlawful employee contracts and requirements.
(1) Existing law provides that every contract that restrains anyone from engaging in a lawful profession, trade, or business of any kind is, to that extent, void, except as provided. Existing law authorizes 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 specified assets or ownership interests to 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. Existing law defines ownership interest as a partnership interest, membership interest, or a capital stockholder, as described.This bill would modify the definition of ownership interest to require the partnership interest, membership interest, or capital stock to be more than a 10% interest of the total partnership interest, more than a 10% interest of the total membership interest, or more than 10% of the total shares of ownership of the entity, respectively.This bill would prohibit an employer, as defined, from entering into, presenting an employee, as defined, or prospective employee as a term of employment, or attempting to enforce any covenant not to compete, as defined, that is void, as described. The bill would provide that an employer that violates that provision is liable for actual damages and an additional penalty of $5,000 per employee or prospective employee who is harmed by the violation. The bill would authorize an employee or prospective employee to bring an action for injunctive relief and for the recovery of actual damages and penalties and would provide that a prevailing employee or prospective employee is entitled to recover reasonable costs and attorneys fees.(2) Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. Existing law provides that it is cause for suspension, disbarment, or other discipline for any licensee, whether acting on their own behalf or on behalf of someone else, whether or not in the context of litigation, to solicit, agree, or seek agreement that, among other things, misconduct or the terms of a settlement of a claim for misconduct shall not be reported to the State Bar.This bill would provide that 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 the above-described prohibition on covenants not to compete.(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 law prohibits an employer from requiring an employee who primarily resides and works in the state to agree, as a condition of employment, to a provision that would require the employee to adjudicate outside of the state a claim arising in the state or would deprive the employee of the substantive protection of state law with respect to a controversy arising in the state. Existing law provides that this prohibition does not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied.This bill would provide that, for a contract entered into, modified, or extended on or after January 1, 2024, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.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 employees responsibilities and duties related to their employment.
(1) Existing law provides that every contract that restrains anyone from engaging in a lawful profession, trade, or business of any kind is, to that extent, void, except as provided. Existing law authorizes 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 specified assets or ownership interests to 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. Existing law defines ownership interest as a partnership interest, membership interest, or a capital stockholder, as described.
This bill would modify the definition of ownership interest to require the partnership interest, membership interest, or capital stock to be more than a 10% interest of the total partnership interest, more than a 10% interest of the total membership interest, or more than 10% of the total shares of ownership of the entity, respectively.
This bill would prohibit an employer, as defined, from entering into, presenting an employee, as defined, or prospective employee as a term of employment, or attempting to enforce any covenant not to compete, as defined, that is void, as described. The bill would provide that an employer that violates that provision is liable for actual damages and an additional penalty of $5,000 per employee or prospective employee who is harmed by the violation. The bill would authorize an employee or prospective employee to bring an action for injunctive relief and for the recovery of actual damages and penalties and would provide that a prevailing employee or prospective employee is entitled to recover reasonable costs and attorneys fees.
(2) Existing law, the State Bar Act, provides for the licensure and regulation of attorneys by the State Bar of California, a public corporation. Existing law provides that it is cause for suspension, disbarment, or other discipline for any licensee, whether acting on their own behalf or on behalf of someone else, whether or not in the context of litigation, to solicit, agree, or seek agreement that, among other things, misconduct or the terms of a settlement of a claim for misconduct shall not be reported to the State Bar.
This bill would provide that 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 the above-described prohibition on covenants not to compete.
(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 law prohibits an employer from requiring an employee who primarily resides and works in the state to agree, as a condition of employment, to a provision that would require the employee to adjudicate outside of the state a claim arising in the state or would deprive the employee of the substantive protection of state law with respect to a controversy arising in the state. Existing law provides that this prohibition does not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied.
This bill would provide that, for a contract entered into, modified, or extended on or after January 1, 2024, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.
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 employees responsibilities and duties related to their employment.
## Digest Key
## Bill 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 Section 16608.(b) For purposes of this section, employee includes, but is not limited to, a full-time or part-time employee and independent contractor.SEC. 2. Section 16601 of the Business and Professions Code is amended to read:16601. (a) Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her 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, so long as if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein. For(b) For the purposes of this section, business the following definitions apply:(1) Business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.For the purposes of this section, owner(2) Owner of a business entity means any partner, in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), or any member, in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or any owner of capital stock, in the case of a business entity that is a corporation.For the purposes of this section, ownership(3) Ownership interest means a any of the following:(A) A partnership interest, in the case of a business entity that is a partnership (including partnership, including a limited partnership a limited liability partnership), a partnership, that is more than a 10-percent interest of the total partnership interest of the entity.(B) A membership interest, in the case of a business entity that is a limited liability company (including company, including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or a series, that is more than a 10-percent interest of the total membership interest of the entity.(C) A capital stockholder, stock, in the case of a business entity that is a corporation. corporation, that is more than 10-percent of the total shares of ownership of the corporation.For the purposes of this section, subsidiary(4) Subsidiary means any business entity over which the selling business entity has voting control or from which the selling business entity has a right to receive a majority share of distributions upon dissolution or other liquidation of the business entity (or has both voting control and a right to receive these distributions.)SEC. 3. Section 16608 is added to the Business and Professions Code, immediately following Section 16607, to read:16608. (a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce any covenant not to compete that is void under this chapter.(b) (1) An employer that violates this section is liable for actual damages and an additional penalty of five thousand dollars ($5,000) per employee or prospective employee who is harmed by the violation. (2) An employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this section. In addition to these remedies, a prevailing employee or prospective employee in any action based on a violation of this section is entitled to recover reasonable costs and attorneys fees.(c) For purposes of this section, the following definitions apply:(1) Covenant not to compete means any provision of any contract or other agreement that restrains anyone from engaging in a lawful profession, trade, or business of any kind.(2) Employee includes, but is not limited to, a full-time or part-time employee and independent contractor.(3) Employer means any person or entity that employs employees.SEC. 4. 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:(1) Require the employee to adjudicate outside of California a claim arising in California.(2) Deprive the employee of the substantive protection of California law with respect to a controversy arising in California.(b) Any provision of a contract that violates subdivision (a) is voidable by the employee, and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in California and California law shall govern the dispute.(c) In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing his or her their rights under this section reasonable attorneys fees.(d) For purposes of this section, adjudication adjudication includes litigation and arbitration.(e) (1) This section shall not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied. For purposes of this subdivision, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.(2) The amendments made by the act adding this paragraph shall apply to a contract entered into, modified, or extended on or after January 1, 2024.(f) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.SEC. 5. Chapter 4.1 (commencing with Section 1058) is added to Part 3 of Division 2 of the Labor Code, to read: CHAPTER 4.1. Training Costs and Debt1058. (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 employees 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.
The people of the State of California do enact as follows:
## 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 Section 16608.(b) For purposes of this section, employee includes, but is not limited to, a full-time or part-time employee and independent contractor.
SECTION 1. Section 6090.5.5 is added to the Business and Professions Code, to read:
### SECTION 1.
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 Section 16608.(b) For purposes of this section, employee includes, but is not limited to, a full-time or part-time employee and independent contractor.
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 Section 16608.(b) For purposes of this section, employee includes, but is not limited to, a full-time or part-time employee and independent contractor.
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 Section 16608.(b) For purposes of this section, employee includes, but is not limited to, a full-time or part-time employee and independent contractor.
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 Section 16608.
(b) For purposes of this section, employee includes, but is not limited to, a full-time or part-time employee and independent contractor.
SEC. 2. Section 16601 of the Business and Professions Code is amended to read:16601. (a) Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her 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, so long as if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein. For(b) For the purposes of this section, business the following definitions apply:(1) Business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.For the purposes of this section, owner(2) Owner of a business entity means any partner, in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), or any member, in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or any owner of capital stock, in the case of a business entity that is a corporation.For the purposes of this section, ownership(3) Ownership interest means a any of the following:(A) A partnership interest, in the case of a business entity that is a partnership (including partnership, including a limited partnership a limited liability partnership), a partnership, that is more than a 10-percent interest of the total partnership interest of the entity.(B) A membership interest, in the case of a business entity that is a limited liability company (including company, including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or a series, that is more than a 10-percent interest of the total membership interest of the entity.(C) A capital stockholder, stock, in the case of a business entity that is a corporation. corporation, that is more than 10-percent of the total shares of ownership of the corporation.For the purposes of this section, subsidiary(4) Subsidiary means any business entity over which the selling business entity has voting control or from which the selling business entity has a right to receive a majority share of distributions upon dissolution or other liquidation of the business entity (or has both voting control and a right to receive these distributions.)
SEC. 2. Section 16601 of the Business and Professions Code is amended to read:
### SEC. 2.
16601. (a) Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her 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, so long as if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein. For(b) For the purposes of this section, business the following definitions apply:(1) Business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.For the purposes of this section, owner(2) Owner of a business entity means any partner, in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), or any member, in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or any owner of capital stock, in the case of a business entity that is a corporation.For the purposes of this section, ownership(3) Ownership interest means a any of the following:(A) A partnership interest, in the case of a business entity that is a partnership (including partnership, including a limited partnership a limited liability partnership), a partnership, that is more than a 10-percent interest of the total partnership interest of the entity.(B) A membership interest, in the case of a business entity that is a limited liability company (including company, including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or a series, that is more than a 10-percent interest of the total membership interest of the entity.(C) A capital stockholder, stock, in the case of a business entity that is a corporation. corporation, that is more than 10-percent of the total shares of ownership of the corporation.For the purposes of this section, subsidiary(4) Subsidiary means any business entity over which the selling business entity has voting control or from which the selling business entity has a right to receive a majority share of distributions upon dissolution or other liquidation of the business entity (or has both voting control and a right to receive these distributions.)
16601. (a) Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her 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, so long as if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein. For(b) For the purposes of this section, business the following definitions apply:(1) Business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.For the purposes of this section, owner(2) Owner of a business entity means any partner, in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), or any member, in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or any owner of capital stock, in the case of a business entity that is a corporation.For the purposes of this section, ownership(3) Ownership interest means a any of the following:(A) A partnership interest, in the case of a business entity that is a partnership (including partnership, including a limited partnership a limited liability partnership), a partnership, that is more than a 10-percent interest of the total partnership interest of the entity.(B) A membership interest, in the case of a business entity that is a limited liability company (including company, including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or a series, that is more than a 10-percent interest of the total membership interest of the entity.(C) A capital stockholder, stock, in the case of a business entity that is a corporation. corporation, that is more than 10-percent of the total shares of ownership of the corporation.For the purposes of this section, subsidiary(4) Subsidiary means any business entity over which the selling business entity has voting control or from which the selling business entity has a right to receive a majority share of distributions upon dissolution or other liquidation of the business entity (or has both voting control and a right to receive these distributions.)
16601. (a) Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her 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, so long as if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein. For(b) For the purposes of this section, business the following definitions apply:(1) Business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.For the purposes of this section, owner(2) Owner of a business entity means any partner, in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), or any member, in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or any owner of capital stock, in the case of a business entity that is a corporation.For the purposes of this section, ownership(3) Ownership interest means a any of the following:(A) A partnership interest, in the case of a business entity that is a partnership (including partnership, including a limited partnership a limited liability partnership), a partnership, that is more than a 10-percent interest of the total partnership interest of the entity.(B) A membership interest, in the case of a business entity that is a limited liability company (including company, including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or a series, that is more than a 10-percent interest of the total membership interest of the entity.(C) A capital stockholder, stock, in the case of a business entity that is a corporation. corporation, that is more than 10-percent of the total shares of ownership of the corporation.For the purposes of this section, subsidiary(4) Subsidiary means any business entity over which the selling business entity has voting control or from which the selling business entity has a right to receive a majority share of distributions upon dissolution or other liquidation of the business entity (or has both voting control and a right to receive these distributions.)
16601. (a) Any person who sells the goodwill of a business, or any owner of a business entity selling or otherwise disposing of all of his or her 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, so long as if the buyer, or any person deriving title to the goodwill or ownership interest from the buyer, carries on a like business therein.
For
(b) For the purposes of this section, business the following definitions apply:
(1) Business entity means any partnership (including a limited partnership or a limited liability partnership), limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or corporation.
For the purposes of this section, owner
(2) Owner of a business entity means any partner, in the case of a business entity that is a partnership (including a limited partnership or a limited liability partnership), or any member, in the case of a business entity that is a limited liability company (including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or any owner of capital stock, in the case of a business entity that is a corporation.
For the purposes of this section, ownership
(3) Ownership interest means a any of the following:
(A) A partnership interest, in the case of a business entity that is a partnership (including partnership, including a limited partnership a limited liability partnership), a partnership, that is more than a 10-percent interest of the total partnership interest of the entity.
(B) A membership interest, in the case of a business entity that is a limited liability company (including company, including a series of a limited liability company formed under the laws of a jurisdiction that recognizes such a series), or a series, that is more than a 10-percent interest of the total membership interest of the entity.
(C) A capital stockholder, stock, in the case of a business entity that is a corporation. corporation, that is more than 10-percent of the total shares of ownership of the corporation.
For the purposes of this section, subsidiary
(4) Subsidiary means any business entity over which the selling business entity has voting control or from which the selling business entity has a right to receive a majority share of distributions upon dissolution or other liquidation of the business entity (or has both voting control and a right to receive these distributions.)
SEC. 3. Section 16608 is added to the Business and Professions Code, immediately following Section 16607, to read:16608. (a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce any covenant not to compete that is void under this chapter.(b) (1) An employer that violates this section is liable for actual damages and an additional penalty of five thousand dollars ($5,000) per employee or prospective employee who is harmed by the violation. (2) An employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this section. In addition to these remedies, a prevailing employee or prospective employee in any action based on a violation of this section is entitled to recover reasonable costs and attorneys fees.(c) For purposes of this section, the following definitions apply:(1) Covenant not to compete means any provision of any contract or other agreement that restrains anyone from engaging in a lawful profession, trade, or business of any kind.(2) Employee includes, but is not limited to, a full-time or part-time employee and independent contractor.(3) Employer means any person or entity that employs employees.
SEC. 3. Section 16608 is added to the Business and Professions Code, immediately following Section 16607, to read:
### SEC. 3.
16608. (a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce any covenant not to compete that is void under this chapter.(b) (1) An employer that violates this section is liable for actual damages and an additional penalty of five thousand dollars ($5,000) per employee or prospective employee who is harmed by the violation. (2) An employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this section. In addition to these remedies, a prevailing employee or prospective employee in any action based on a violation of this section is entitled to recover reasonable costs and attorneys fees.(c) For purposes of this section, the following definitions apply:(1) Covenant not to compete means any provision of any contract or other agreement that restrains anyone from engaging in a lawful profession, trade, or business of any kind.(2) Employee includes, but is not limited to, a full-time or part-time employee and independent contractor.(3) Employer means any person or entity that employs employees.
16608. (a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce any covenant not to compete that is void under this chapter.(b) (1) An employer that violates this section is liable for actual damages and an additional penalty of five thousand dollars ($5,000) per employee or prospective employee who is harmed by the violation. (2) An employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this section. In addition to these remedies, a prevailing employee or prospective employee in any action based on a violation of this section is entitled to recover reasonable costs and attorneys fees.(c) For purposes of this section, the following definitions apply:(1) Covenant not to compete means any provision of any contract or other agreement that restrains anyone from engaging in a lawful profession, trade, or business of any kind.(2) Employee includes, but is not limited to, a full-time or part-time employee and independent contractor.(3) Employer means any person or entity that employs employees.
16608. (a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce any covenant not to compete that is void under this chapter.(b) (1) An employer that violates this section is liable for actual damages and an additional penalty of five thousand dollars ($5,000) per employee or prospective employee who is harmed by the violation. (2) An employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this section. In addition to these remedies, a prevailing employee or prospective employee in any action based on a violation of this section is entitled to recover reasonable costs and attorneys fees.(c) For purposes of this section, the following definitions apply:(1) Covenant not to compete means any provision of any contract or other agreement that restrains anyone from engaging in a lawful profession, trade, or business of any kind.(2) Employee includes, but is not limited to, a full-time or part-time employee and independent contractor.(3) Employer means any person or entity that employs employees.
16608. (a) An employer shall not enter into, present an employee or prospective employee as a term of employment, or attempt to enforce any covenant not to compete that is void under this chapter.
(b) (1) An employer that violates this section is liable for actual damages and an additional penalty of five thousand dollars ($5,000) per employee or prospective employee who is harmed by the violation.
(2) An employee or prospective employee may bring an action for injunctive relief and for the recovery of actual damages and additional penalties pursuant to this section. In addition to these remedies, a prevailing employee or prospective employee in any action based on a violation of this section is entitled to recover reasonable costs and attorneys fees.
(c) For purposes of this section, the following definitions apply:
(1) Covenant not to compete means any provision of any contract or other agreement that restrains anyone from engaging in a lawful profession, trade, or business of any kind.
(2) Employee includes, but is not limited to, a full-time or part-time employee and independent contractor.
(3) Employer means any person or entity that employs employees.
SEC. 4. 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:(1) Require the employee to adjudicate outside of California a claim arising in California.(2) Deprive the employee of the substantive protection of California law with respect to a controversy arising in California.(b) Any provision of a contract that violates subdivision (a) is voidable by the employee, and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in California and California law shall govern the dispute.(c) In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing his or her their rights under this section reasonable attorneys fees.(d) For purposes of this section, adjudication adjudication includes litigation and arbitration.(e) (1) This section shall not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied. For purposes of this subdivision, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.(2) The amendments made by the act adding this paragraph shall apply to a contract entered into, modified, or extended on or after January 1, 2024.(f) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.
SEC. 4. Section 925 of the Labor Code is amended to read:
### SEC. 4.
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:(1) Require the employee to adjudicate outside of California a claim arising in California.(2) Deprive the employee of the substantive protection of California law with respect to a controversy arising in California.(b) Any provision of a contract that violates subdivision (a) is voidable by the employee, and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in California and California law shall govern the dispute.(c) In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing his or her their rights under this section reasonable attorneys fees.(d) For purposes of this section, adjudication adjudication includes litigation and arbitration.(e) (1) This section shall not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied. For purposes of this subdivision, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.(2) The amendments made by the act adding this paragraph shall apply to a contract entered into, modified, or extended on or after January 1, 2024.(f) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.
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:(1) Require the employee to adjudicate outside of California a claim arising in California.(2) Deprive the employee of the substantive protection of California law with respect to a controversy arising in California.(b) Any provision of a contract that violates subdivision (a) is voidable by the employee, and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in California and California law shall govern the dispute.(c) In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing his or her their rights under this section reasonable attorneys fees.(d) For purposes of this section, adjudication adjudication includes litigation and arbitration.(e) (1) This section shall not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied. For purposes of this subdivision, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.(2) The amendments made by the act adding this paragraph shall apply to a contract entered into, modified, or extended on or after January 1, 2024.(f) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.
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:(1) Require the employee to adjudicate outside of California a claim arising in California.(2) Deprive the employee of the substantive protection of California law with respect to a controversy arising in California.(b) Any provision of a contract that violates subdivision (a) is voidable by the employee, and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in California and California law shall govern the dispute.(c) In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing his or her their rights under this section reasonable attorneys fees.(d) For purposes of this section, adjudication adjudication includes litigation and arbitration.(e) (1) This section shall not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied. For purposes of this subdivision, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.(2) The amendments made by the act adding this paragraph shall apply to a contract entered into, modified, or extended on or after January 1, 2024.(f) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.
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:
(1) Require the employee to adjudicate outside of California a claim arising in California.
(2) Deprive the employee of the substantive protection of California law with respect to a controversy arising in California.
(b) Any provision of a contract that violates subdivision (a) is voidable by the employee, and if a provision is rendered void at the request of the employee, the matter shall be adjudicated in California and California law shall govern the dispute.
(c) In addition to injunctive relief and any other remedies available, a court may award an employee who is enforcing his or her their rights under this section reasonable attorneys fees.
(d) For purposes of this section, adjudication adjudication includes litigation and arbitration.
(e) (1) This section shall not apply to a contract with an employee who is in fact individually represented by legal counsel in negotiating the terms of an agreement to designate either the venue or forum in which a controversy arising from the employment contract may be adjudicated or the choice of law to be applied. For purposes of this subdivision, an employee is not considered individually represented by legal counsel if the counsel is paid for by, or was selected based upon the suggestion of, the employees employer.
(2) The amendments made by the act adding this paragraph shall apply to a contract entered into, modified, or extended on or after January 1, 2024.
(f) This section shall apply to a contract entered into, modified, or extended on or after January 1, 2017.
SEC. 5. Chapter 4.1 (commencing with Section 1058) is added to Part 3 of Division 2 of the Labor Code, to read: CHAPTER 4.1. Training Costs and Debt1058. (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 employees 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.
SEC. 5. Chapter 4.1 (commencing with Section 1058) is added to Part 3 of Division 2 of the Labor Code, to read:
### SEC. 5.
CHAPTER 4.1. Training Costs and Debt1058. (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 employees 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.
CHAPTER 4.1. Training Costs and Debt1058. (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 employees 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.
CHAPTER 4.1. Training Costs and Debt
CHAPTER 4.1. Training Costs and Debt
1058. (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 employees 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.
1058. (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 employees 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.