LAUREN TEUKOLSKY RECEIVES 2025 SERVICE AWARD FROM CALIFORNIA EMPLOYMENT LAWYERS ASSOCIATION10/27/2025 Lauren Teukolsky of Teukolsky Law, APC was recently honored with a 2025 Service Award by the California Employment Lawyers Association (CELA). CELA selected Ms. Teukolsky based on her “leadership and service on numerous CELA Committees and dedication to the rights of working people.” CELA is a statewide organization of more than 1,300 California attorneys who devote the majority of their practices to representing employees in individual and class action employment cases. CELA works to protect and expand the legal rights of workers through litigation, education, and advocacy. Ms. Teukolsky has more than 20 years of experience litigating employment cases. She has been a CELA member since 2002. She served as Co-Chair of CELA’s Wage & Hour Committee from 2019-2021, and currently serves on the Amicus Committee. Her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times. To learn more about Ms. Teukolsky, click here. If you believe you have been wrongfully terminated, harassed, or suffered from other unlawful workplace practices, click here to get in touch with our office.
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California has passed a law banning “stay-or-pay” provisions in employment agreements. Effective January 1, 2026, A.B. 692 prohibits employers from requiring workers to repay training costs or other debts if they leave their jobs.
Stay-or-pay requirements, also known as training repayment agreement provisions, or TRAPs, cause workers to stay with an employer out of fear of repaying thousands of dollars in training costs. Employers use TRAPs to incentivize workers to stay in their jobs. Critics say that stay-or-pay clauses limit job mobility and force employees to work for lower wages. The American Civil Liberties Union has called these contracts “a form of indentured servitude.” TRAPs often exacerbate gender and racial disparities in the workplace because immigrants and women of color disproportionately hold low wage jobs with stay-or-pay provisions. The law, which adds a new section to the California Labor Code, permits employees subject to TRAPs to sue for civil penalties with a minimum of $5,000 per worker. Some narrow exceptions exist for loan repayment assistance program contracts and tuition repayment contracts. Lauren Teukolsky has represented workers for over two decades and her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times. If you believe you are subject to an unlawful TRAP, click here to get in touch. On October 8, 2025, Governor Newsom signed the Equal Pay Enforcement Act (SB 642) into law. Effective January 1, 2026, the new law strengthens California’s Equal Pay Act by broadening wage transparency requirements and extending the timeframe for employees to bring claims.
Under SB 642, employers are now required to provide a good faith estimate of expected pay in job postings. Pay ranges may only vary 10% above and below the mean pay for any given position. The law extends the time that employees may file a claim from two to three years. It adopts the continuing violations doctrine, allowing workers to seek back pay for up to six years. Additionally, the law clarifies that the requirement of equal “wages” covers not just monetary pay, but also equity grants like stock and stock options. The law modernizes existing protections by removing binary gender language, protecting all employees regardless of gender identity. SB 642 is an important step toward addressing the racial and gender wage gap. American women lose $1.7 trillion annually because of the wage gap. Black women earn just 64 cents for every dollar earned by a white man. Mariko Yoshihara, Policy Director for the California Employment Lawyers Association, explained that, “one of the biggest barriers to advancing pay equity is that workers often don’t know that they are being paid unfairly until it is too late.” Lauren Teukolsky has represented workers for over two decades and her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times. If you would like to speak with her about an employment matter, click here. California is leading the nation with new regulations on the use of artificial intelligence (AI) in employment practices. Starting October 1, 2025, employers must follow antidiscrimination rules when using AI systems to make decisions on hiring, firing, promotion, or performance evaluations. If an AI system demonstrates bias against a protected group, even unintentionally, it may violate state civil right protections. This addresses a growing concern that AI tools used in decision-making may amplify existing inequalities in the workplace.
A wide range of AI tools used by employers are covered by the new regulations, from resume screeners to automated applicant ranking systems. Employers are encouraged to test these tools regularly for biases and document active preventative measures taken to mitigate potential discrimination in their AI tools. These records must be preserved for four years. The bottom line is that employers must explain how employment decisions using AI tools are made with preventative measures in mind. For workers, these regulations provide a legal pathway to relief if they believe AI has been used to discriminate against them. For employers, the regulations create an incentive to conduct frequent bias testing and training as insurance against any lawsuits. Employers can raise evidence of anti-bias testing as an affirmative defense against AI discrimination lawsuits. Courts will have to weigh factors like the quality and timing of an employer’s bias testing, and whether any harmful results were addressed. Additional AI legislation, SB 7, is on Governor Newsom’s desk awaiting signature. The bill could restrict employers from using AI to make personnel decisions without human involvement. California agencies are considering additional AI regulations in housing, education, lending, and health care. Lauren Teukolsky has represented workers for over two decades and her commentary on the latest developments in employment law is regularly featured by major publications such as Bloomberg Law, Law360, Law.com, and the Los Angeles Times. If you would like to speak with her about an employment matter, click here. |
AuthorLauren Teukolsky is the founder and owner of Teukolsky Law, A Professional Corporation. Archives
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