California’s AB 692 Is a Wake-Up Call for Relocation and Global Mobility Programs
Effective January 1, 2026, California Assembly Bill 692 (AB 692) will significantly change how employers may structure employee repayment agreements tied to relocation, training, immigration sponsorship, and other employment-related costs. The law targets so-called Training Repayment Agreement Provisions (TRAPs)—often referred to as “stay-or-pay” clauses—that require employees to repay certain costs if they leave employment before a defined period.
For organizations managing relocation and global mobility programs, AB 692 is not simply an employment law update. It has direct implications for how mobility benefits are designed, documented, communicated, and governed.
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