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Labor/Employment

Jan. 2, 2026

AB 692: Redefines employee contracts and raises new legal questions

Ryne C. Posey

Associate
Skadden Arps Slate Meagher & Flom

labor & employment

Phone: (213) 687-5053

Email: ryne.posey@skadden.com

UC Berkeley Boalt Hall

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Anthony E. Guzman II

Associate
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates

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AB 692: Redefines employee contracts and raises new legal questions

California banned most traditional non-competes years ago. But the broader dialogue over employee mobility never really stopped. As the labor market evolved, employers experimented with a range of alternative strategies to incentivize employee retention and protect other interests--including the use of contractual arrangements that didn't bar competition outright but attached financial consequences (or incentives) that arguably made leaving less desirable in practice. Over time, these ...

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