California’s AB 692 is set to significantly impact how employers structure repayment agreements, especially those tied to training, relocation benefits, and visa sponsorship. To stay compliant and avoid costly legal issues, employers and global mobility teams should begin reviewing internal policies now.
Below are the essential steps organizations should take to prepare:
Audit All Existing Repayment Agreements
Conduct a full review of any agreements that require employees to repay training costs, relocation expenses, or visa-related fees. Identifying outdated or non-compliant documents is the first step toward AB 692 readiness.
Create Separate, Standalone Agreements
AB 692 prohibits repayment clauses from being buried inside employment contracts.
Employers must provide clear, independent repayment agreements that include:
- A mandatory five-business-day review period
- Transparent terms and repayment timelines
- No coercion or pressure to sign immediately
Update Repayment Terms to Meet AB 692 Rules
Repayment provisions must now be:
- Interest-free
- Prorated over time
- Limited to a maximum of two years
These changes ensure that repayment obligations are fair and compliant with California’s new standards.
Review and Revise Mobility Policies
Relocation and visa reimbursement policies should be evaluated to ensure they do not include unenforceable repayment clauses. This provides mobility guidelines, assignment letters, and relocation program documentation.
Train HR, Mobility, and Talent Teams
Teams responsible for relocation, immigration, or global mobility must understand the new rules. Providing training ensures compliant administration and clear communication with employees considering an assignment or relocation.
Explore Alternative Retention Strategies
Since AB 692 restricts how repayment agreements can be used, employers may need to adopt new retention strategies. Consider:
- Retention bonuses
- Deferred compensation or benefits
- Performance-based incentives
All of these can support employee commitment while remaining compliant with AB 692.
By taking proactive steps now, organizations can protect themselves from legal risk and maintain efficient, employee-focused mobility programs.
What AB 692 Means for Employees Who Relocate or Go on Assignment
AB 692 provides employees with expanded protections when participating in employer-sponsored training, relocation programs, or visa sponsorship. Employees can expect:
- No unexpected repayment demands for relocation or visa costs if they leave a role early.
- Clear, standalone repayment agreements—not clauses hidden within employment contracts.
- Fair and limited repayment terms, including prorated repayment and a two-year cap.
Overall, the law promotes employee mobility and career flexibility, reducing the financial penalties that once discouraged employees from taking new opportunities. Employees should carefully review any agreement presented and ask questions if the terms seem unclear, inconsistent, or burdensome.
Final Thoughts on AB 692 and Repayment Agreements
California’s AB 692 is reshaping the way organizations handle repayment agreements tied to relocation, training, and mobility benefits. While the legislation strengthens employee rights and transparency, it also challenges employers to modernize their policies ahead of the January 2026 compliance deadline.
At Global Mobility Solutions (GMS), we are closely monitoring every shift in the mobility landscape—from relocation policies and visa regulations to complex immigration trends. Our team continually analyzes new legislation, such as AB 692, to help organizations stay compliant, proactive, and fully prepared.
As AB 692 and other regulatory changes redefine global mobility, GMS ensures our clients remain informed, compliant, and confident as they navigate the road ahead.
Christina Urrutia
Christina oversees Global Business Development for LATAM markets. Christina brings with her over 15 years of experience in helping clients build mobility solutions in a variety of roles such as Relocation Counselor, VP of Global Sales, Manager of Business Development and Strategic Partnership Manager. Christina holds key industry certifications including Global Mobility Specialist with a talent accreditation (GMS-T) and Certified Relocation Professional (CRP) designation from Worldwide ERC. She also holds a 120-hour English as a second language teaching certification (TESOL) and has completed over 400 class hours helping students achieve their fluency goals. Christina’s passion for Duty of Care and Employee Wellbeing has led to countless speaking engagements within the industry and has fueled her own networking group, Women of Global Mobility to inspire and encourage the growth of Women within the industry.
