Client Alert: California Limits “Stay-or-Pay” Agreements

Client Alert: California Limits “Stay-or-Pay” Agreements

Beginning January 1, 2026, California will restrict employers from requiring employees to repay sign-on bonuses and will generally prohibit repayment obligations for retention bonuses. These changes limit employers’ ability to impose conditions that require bonus repayment if an employee leaves before a specified date.

Click here to read the alert.