A new law went into effect in California and it could be a game-changer for people working under contract in TV news.

This week California Governor Gavin Newsom signed Assembly Bill 692 into law, which bans employers from forcing workers to pay debts, fees, or penalties to leave their jobs.

This new law, which takes effect on January 1, 2026, targets "stay-or-pay" and "Training Repayment Agreement Provisions" (TRAPs) by making them illegal in most California employment contracts.

The law allows certain exceptions, such as agreements for sign-on and retention bonuses, but requires specific conditions like a separate, legally-reviewed repayment agreement with prorated, non-interest-bearing penalties for early departure.

The law has not gone into effect just yet, but it will be interesting to see how this impacts TV news contracts in California.

We have heard from countless TV news people who have paid the fee to leave, or can’t leave, because they can’t afford the fee.

Stay tuned….