How CloudApper hrPad Helps You Avoid Costly Violations Under California’s Stay or Pay Ban

Starting January 1, 2026, California will enforce Assembly Bill 692 (AB 692). This new law, also known as the Stay or Pay Ban, will block most agreements that require employees to repay costs like training, relocation, or bonuses if they leave their job early. The goal is to improve employee mobility and reduce penalties tied to leaving a job.

For employers, this law brings big changes. It also creates a valuable chance to update outdated HR processes. CloudApper hrPad offers a smart way to adapt quickly and avoid costly mistakes—without slowing down your operations.

What the Stay or Pay Ban Means for Employers

AB 692 makes it illegal to force employees to repay certain costs if they resign or are terminated—unless the situation fits one of the few allowed exceptions. Common policies that may violate the law include:

• Training repayment agreements

• Relocation reimbursements

• Signing or retention bonuses with clawback terms

Employers who ignore the law risk serious consequences:

• Fines starting at $5,000 per employee

• Employee lawsuits and legal battles

• Loss of trust and negative publicity

Because of the Stay or Pay Ban, companies must now carefully review how they offer bonuses, training, and relocation benefits.

How CloudApper hrPad Helps You Stay Protected

CloudApper hrPad gives you tools to meet the law’s requirements while keeping your HR operations smooth. Here’s how it helps your organization follow the Stay or Pay Ban and avoid violations.

1. Removes Illegal Repayment Enforcement

With CloudApper hrPad, you can build custom HR workflows that prevent illegal repayment actions. For example, when an employee resigns, the system won’t trigger repayment steps tied to bonuses or training.

You can also update onboarding and training forms to remove risky clauses. Instead of relying on manual checks, hrPad automates legal compliance across your workforce.

The result: You avoid accidental legal violations and save time by letting automation handle it.

2. Tracks Consent for Legal Exceptions

In some cases, AB 692 allows employers to offer bonuses or training tied to a repayment condition. But there are strict rules:

• A separate agreement is required

• Employees must have at least five business days to review it

• Any repayment must be prorated, interest-free, and voluntary

CloudApper hrPad lets you log all these steps digitally. You can track consent, approval dates, and compliance automatically.

The result: You maintain legal proof of compliance and avoid disputes later.

3. Applies California Rules Automatically

If your company operates in multiple states, managing different rules manually is risky. CloudApper hrPad solves this with location-based logic.

For example:

• California employees won’t see repayment fields during onboarding

• Exit workflows adjust automatically based on location

• Different agreements apply in different states—no confusion

The result: You follow the Stay or Pay Ban in California while maintaining flexibility nationwide.

4. Answers HR Questions with AI-Powered Support

Employees often ask about training, benefits, or bonuses. Misunderstandings can lead to claims or complaints. CloudApper hrPad includes a 24/7 AI assistant that answers these questions clearly and consistently.

Employees might ask:

“Will I need to pay back my training if I leave?”

The AI responds using your company’s policies and California law.

The result: Employees get answers fast, and HR avoids unnecessary back-and-forth.

5. Streamlines Offboarding and Exit Processes

Offboarding is a common area where mistakes happen. Old workflows might still trigger repayment notices or deductions. With hrPad, you can automate a clean and legal offboarding process.

For example:

• Exit checklists can hide repayment steps for California workers

• Notifications can alert HR when a repayment clause may violate AB 692

• Employee surveys and records remain fully digital and searchable

The result: You reduce the risk of last-minute legal issues during employee separation.

Compliance Doesn’t Have to Be Complicated

CloudApper hrPad makes it easy to stay compliant with AB 692 while streamlining your HR processes. Whether you use UKG, Workday, Dayforce or another HCM platform, hrPad works alongside your system to:

• Replace manual work with automation

• Adjust based on worker location

• Log consent and activity for legal safety

All of this happens in the background, saving your HR team time and reducing risk.

Stay Compliant and Focused on Your People

The Stay or Pay Ban will soon change how California employers manage agreements and expenses. If you don’t adapt in time, your business may face legal trouble. But with CloudApper hrPad, you can protect your company and your team.

Start preparing today. Let hrPad handle the complexity, so you can focus on what matters most your people.