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AB 1697: Stay-or-Pay Law – Revisions, New Expectations, and Delayed Effective Date On September 30, 2026, Gov. Gavin Newsom signed AB 1697, an urgency statute that took effect immediately. It amends Business and Professions Code § 16608 and Labor Code § 926, the “stay-or-pay” provisions enacted last year under AB 692, which originally applied to contracts entered into on or after January 1, 2026.
Washington is the latest state to enact a Mini-Worker Adjustment and Retraining Notification (WARN) law. Effective July 27, 2025, the Securing Timely Notification and Benefits for Laid-Off Employees Act (SB 5525) imposes notice protections for certain mass layoffs and business site closings within the state.
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