Legislation

* § 1052. Prohibiting the use of employment promissory notes and other
similar provisions. 1. No employer may require, as a condition of
employment, any employee or prospective employee to execute an
employment promissory note. The execution of an employment promissory
note as a condition of employment is unconscionable, against public
policy, and unenforceable, and any such note shall be null and void. If
any such note is part of a larger agreement, the invalidity of such note
shall not affect the other provisions of such agreement.

2. Nothing in this section shall prohibit or render void or
unenforceable any agreement between an employee and an employer that:

(a) requires the employee to reimburse the employer for the cost of
tuition, fees, and required educational materials for a transferable
credential that meets all of the following requirements:

(i) The agreement is set forth in a written contract that is offered
separately from any contract for employment.

(ii) The agreement does not require the employee to obtain the
transferable credential as a condition of employment.

(iii) The agreement specifies the repayment amount before the employee
agrees to the contract, and the repayment amount does not exceed the
cost to the employer of the tuition, fees, and required educational
materials for the transferable credential received by the employee.

(iv) The agreement provides for a prorated repayment amount during any
required employment period that is proportional to the total repayment
amount and the length of the required employment period and does not
require an accelerated payment schedule if the employee separates from
the employment.

(v) The agreement does not require repayment to the employer by the
employee if the employee is terminated, except if the employee is
terminated for misconduct.

(b) requires the employee to pay the employer for any property the
employer has sold or leased to the employee, as long as such sale or
lease was voluntary.

(c) requires the employee to repay a financial bonus, relocation
assistance, or other non-educational incentive or other payment or
benefit that is not tied to specific job performance, unless the
employee was terminated for any reason other than misconduct or the
duties or requirements of the job were misrepresented to the employee.

(d) requires educational personnel to comply with any terms or
conditions of sabbatical leaves granted by their employers; or

(e) is entered into as part of a program agreed to by the employer and
its employees' collective bargaining representative.

* NB Effective December 19, 2026