Do your staff contracts ask employees to pay back training if they leave? California AB 1697 was signed into law on September 30, 2026, and the state's stay-or-pay ban now covers staff contracts made on or after January 1, 2027. If you train injectors or laser staff in California, this one is worth a look before the new year.
By Amber Bechthold, Founder & CEO of Aesthetic Compliance Experts · Esthetician with 25 years in medicine and aesthetics · Last reviewed October 27, 2026
Key Facts at a Glance
Status: Passed · takes effect soon
State: California
Law: AB 1697 (Chapter 889, Statutes of 2026)
Signed: September 30, 2026
Applies to: staff contracts made on or after January 1, 2027
What it does: bans stay-or-pay terms, including training repayment, in California job contracts
Who it affects: employers and workers in California
What Changed
New start date: the ban now covers contracts made on or after January 1, 2027. Before, it covered contracts made on or after January 1, 2026.
What "stay-or-pay" means: terms that make a worker pay money back if the job ends, such as paying back the cost of training.
2026 claims: pending claims about these terms in 2026, before this law, are ended.
Why This Matters in a Med Spa
Med spas put a lot into training. Injector courses, laser certification and hands-on shadowing all cost money, and training repayment terms have been a common way to protect that investment. Starting January 1, 2027, those terms are covered by California's ban in new staff contracts.
Does This Apply to My Clinic?
If you employ staff in California, it's worth a look. If your clinic is in another state, this law doesn't apply to you.
What the law doesn't spell out
It doesn't name injector, laser or other clinic training specifically.
Exceptions exist, and each one has its own conditions in the text.
Don't guess on the exceptions. Ask your attorney how they apply to your contracts.
Frequently Asked Questions
When does the AB 1697 stay-or-pay ban apply?
To staff contracts made on or after January 1, 2027.
Does it cover training repayment agreements?
Yes. Training repayment is one of the pay-back terms the ban covers. Some exceptions apply, each with its own conditions.
Does AB 1697 name injector or laser training?
No. It doesn't name clinic training specifically.
Does this apply outside California?
No. AB 1697 is a California law.
Sources
LegiScan: California AB 1697 (2025-2026)
Akin Gump: AB 1697 amends California's stay-or-pay restrictions
Morgan Lewis: California's stay-or-pay law effective date delayed
What This Means for Your Clinic
If your clinic is in California, the areas this law touches are:
Employment and training agreements you plan to sign in 2027
Training repayment or other pay-back terms in those agreements
Offer letters for injectors, nurses and laser staff
Our clients get the step-by-step plan for updating their agreements. Questions about your own contracts go to your attorney.
Keep reading
Need a legal answer for your clinic?
ACE works with Doris Dike, Esq., founder of Dike Law Group PLLC, our outside legal counsel. If you need an attorney to look at how this applies to your clinic, her office can help. Her office includes an attorney licensed in California.
Phone: (972) 290-1031
Office: 6160 Warren Parkway, Suite 100, Frisco, TX 75034
Book a call: dklawg.com/contact
Have questions about how this applies to your clinic? Book a free 30-minute Gap Analysis Call or text us anytime at (817) 442-7484.
This post is educational. It is not legal advice, and requirements differ by state and by practice. Confirm how any change applies to your clinic with your own attorney or your licensing board.
