Ensure Your Relocation Program Complies with California’s Repayment Law
Important Notice: This content is for informational purposes only and does not constitute legal advice. Consult qualified legal counsel regarding the application of AB 692 to your specific circumstances.
California Assembly Bill 692 (AB 692) is now in effect for applicable repayment agreements entered into on or after January 1, 2026.
Use this checklist to assess whether your relocation policies and repayment agreements comply with current California law.
What Is AB 692?
California Assembly Bill 692 generally prohibits employers from requiring employees to repay costs or benefits solely because they resign or are terminated.
The law:
• Applies to repayment agreements entered into on or after January 1, 2026
• Is not retroactive
• Includes potential financial penalties for noncompliance
Official bill text: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB692
AB 692 Relocation Compliance Checklist
1. Policy & Agreement Review
☐ Identify all relocation policies containing repayment or clawback language
☐ Review relocation repayment agreement templates currently in use
☐ Confirm which agreements were issued on or after January 1, 2026
☐ Determine whether repayment provisions are triggered solely by resignation or termination
☐ Evaluate enforceability under California law with employment counsel
2. Benefit Category Risk Assessment
☐ Moving and transportation expenses
☐ Temporary housing and corporate housing
☐ Home sale assistance
☐ Home purchase assistance
☐ Lump-sum relocation payments
☐ Direct reimbursements
☐ Sign-on or mobility incentives tied to continued employment
3. Jurisdiction & Employee Identification
☐ Identify employees relocating to California
☐ Identify employees relocating within California
☐ Confirm which roles are governed by California employment law
☐ Review remote employees based in California receiving relocation benefits
4. Legal & Risk Management Coordination
☐ Confirm interpretation of AB 692 with legal counsel
☐ Review potential financial penalties for noncompliance
☐ Assess enforceability of existing repayment language
☐ Approve revised agreement language through employment counsel
☐ Do not issue new or revised repayment agreements without legal approval
5. Administrative & Operational Alignment
☐ Update repayment agreement templates (after legal review)
☐ Revise onboarding workflows
☐ Update relocation policy documentation
☐ Train HR and Talent Acquisition teams
☐ Communicate updates to internal stakeholders
☐ Document compliance procedures
6. Financial & Program Impact Review
☐ Reassess cost recovery assumptions
☐ Adjust mobility program budgets if necessary
☐ Evaluate retention and financial exposure
☐ Update cost projections for future relocations
How MoveCenter Supports Ongoing Compliance
MoveCenter partners with HR and mobility leaders to operationalize compliant relocation programs once legal guidance has been established.
MoveCenter supports:
• Administrative implementation of legally approved policy updates
• Workflow adjustments for compliant relocation processing
• Coordination between HR, legal, and mobility teams
• Program redesign discussions aligned with organizational risk tolerance
• Documentation control and process alignment
Disclaimer
This material is provided for informational purposes only and is not intended to constitute legal advice or a legal opinion. MoveCenter does not provide legal counsel or interpretation of employment laws. The application of California Assembly Bill 692 may vary depending on specific facts and jurisdictional considerations. Employers are strongly encouraged to consult qualified legal counsel regarding how this law affects their relocation policies, repayment agreements, and mobility programs.
Download a PDF of the checklist.
