AB 692, Kalra. Employment: Contracts in Restraint of Trade is a new amendment to California law, effective January 1, 2026. It severely restricts "stay-or-pay" clauses in employment contracts. These clauses previously forced drivers to stay with a company or repay some conditional "debts."
Although there are exceptions, the use of the threat of many “training” and “certification” repayment agreements are now prohibited. Many consider these schemes as “Indentured servitude” or “slave labor.”
Many employers used these contracts to trap drivers. Drivers had to meet deadlines or face "stay-or-pay" penalties, some up to $10,000.
Now, employers cannot force you to repay training or relocation "debts." However, a misdemeanor conviction and the subsequent “serious offense” scar on your PSP for speeding in a CMV still threatens your CDL.
Consequences of a Conviction for Speeding in a CMV
A conviction for “excessive speeding” in a CMV carries these heavy penalties in CA and at the FMCSA:
- A Possible Criminal Record: A 15+ mph violation is a misdemeanor offense in CA.
- Convictions for Speeding 15 or more mph over the statewide commercial speed limit of 55 mph could result in fines exceeding $3,000 with the added State and County surcharges.
- Total Cost: Fines for 1-14 mph over the speed limit typically range from $336 to $800.
- DMV Points: The DMV assesses 1.5 NOTS (Negligent Operator Treatment System) points.
- Federal Records: The FMCSA records "serious offenses" on the commercial driver’s PSP, which could result in a driver disqualification with a second conviction for excessive speeding within three years.
- Suspension: Four NOTS points in one year trigger a "negligent operator" status that requires the commercial driver to request a DMV NOTS hearing to contest the negligent operator status or NOTS points. When a commercial driver receives the majority of their points in their CMV, they may be eligible for leeway based on the miles driven in their CMV or get points removed from their driving record.
These consequences might be avoided by challenging traffic tickets with the assistance of a CA traffic ticket attorney.
“A misdemeanor is a type of offense punishable under criminal law. A misdemeanor is typically a crime punishable by less than 12 months in jail.”—Cornell Law School Legal Information Institute (LII) WEX Definitions: Misdemeanor.
Protecting Your CDL and Career
A CA driver is only allowed four NOTS points in one year, six in two years, or eight within three. Exceeding these limits could lead to a six-month suspension and 12-month probation in CA.
However, CA Vehicle Code (VC) Section 12810.5 allows the DMV to provide some commercial drivers with additional leeway.
You or an attorney might attend a DMV NOTS hearing to request more leeway. Your attorney would argue that you faced an inordinate risk based on the miles driven in a CMV. However, challenging all moving violations in court could be the better option.
Fight charges that could result in a “serious offense” at the FMCSA, like speeding in a CMV, cell phone use, an unsafe lane change, or following too close to avoid a first conviction.
Legal help to challenge a speeding in a CMV charge in Santa Barbara County is often the best path forward.
Contact Bigger & Harman About Speeding in a CMV in San Luis Obispo County
Our team at Bigger & Harman understands the procedures for challenging moving violations in the San Luis Obispo County, CA courts, like Grover Beach, San Luis Obispo and Paso Robles Courthouses.
We have the knowledge and experience to protect your CDL and your driving future. Although there are no guaranteed results, we are often able to negotiate with the courts for a reduced, no-point violation with a fine only or an outright dismissal.
You can reach us at (661) 349-9300 or marque 859-1177 para Español. We can also help with Punjabi.
Email us at attorney@biggerharmanlaw.com. Use our secure website contact form for a free initial consultation. Contact us today to discuss your situation.
Download our e-book, Protecting Your Commercial Driver License.
❓ Frequently Asked Questions (FAQ) Section
Q: What is a misdemeanor speeding offense in CA?
A: There is only one misdemeanor speeding charge in California. Speeding in a CMV more than 15 mph over the statewide commercial vehicle limit is a misdemeanor. A conviction can result in a permanent criminal record, a fine up to $3,000 with assessments, and jail time/probation. You need a CA traffic attorney with trial experience to obtain the best results for this charge.
Q: What is an FMCSA serious offense?
A: The FMCSA classifies several commercial vehicle violations as a serious offense, such as “excessive speeding” 15+ mph over the speed limit, an unsafe lane change, cell phone use, and others in 49 CFR Part 383.51, Paragraph 6.2.5, Disqualification of Drivers. Two such convictions within three years of the first will lead to a 60-day disqualification. Subsequent convictions will lead to longer disqualifications until a lifetime ban from interstate commercial driving is implemented.
Q: How does AB-692 protect commercial drivers?
A: AB-692 bans "stay-or-pay" contracts created after 1 January 2026 from containing language that would force drivers to repay training, certification, or other costs if they are terminated or quit. This prevents fleets from using debt to force drivers into unsafe practices. It helps drivers leave coercive employment situations without consequences. These can be complicated, and drivers should discuss possible violations with a labor law professional.
References:
CA VC Sections 22406 & 22406.1, Speed Laws.
The Cornell Law School LII WEX Definitions: Misdemeanor.
The DOT FMCSA 49 CFR Part 383.51, Paragraph 6.2.5, Disqualification of Drivers.
AB 692, Kalra. Employment: Contracts in Restraint of Trade.