06/11/2026
β οΈ California trucking and transportation employers: a standard industry practice just became illegal.
As of January 1, 2026, AB 692 broadly prohibits "stay-or-pay" clauses: the arrangements carriers have long used to protect their investment in drivers. If your employment agreements, offer letters, or onboarding documents include these terms, you may already be out of compliance.
The penalties are real: Employees can sue directly, and if they win, the minimum payout is $5,000 per violation... more if their actual losses are higher. Attorney's fees are on top of that. For a carrier with multiple affected drivers, that exposure adds up quickly.
Narrow exceptions do exist, but the bar is high, and the details matter. Now's the time to audit your agreements.