As of January 1, 2026, AB-692, Kalra. Employment: Contracts in Restraint of Trade have officially changed California labor laws.
This law targets predatory "stay-or-pay" contracts used by many trucking companies. These are also known as Training Repayment Agreement Provisions (TRAPs).
In this blog post, we will examine how AB-692 impacts fleet drivers, while laying it out beside a hypothetical scenario where the fleet manager compels the driver to disregard speed limits to deliver a load before the deadline under the threat of job loss and training fee repayments.
Speeding in a commercial motor vehicle (CMV) can be expensive, and the consequences of a conviction can be far-reaching, impacting a commercial driver’s career for years.
NOTE: The information about AB-692 is FYI only. If you have questions about your employment contract, ask a labor law attorney. If, however, you have questions about speeding in a CMV, contact a CA traffic attorney immediately.
For commercial drivers in California, this legislation marks a significant shift in workplace protections.
Many motor carriers have required new hires to sign agreements stating that if they leave the company before a certain period—often one to two years—they must repay thousands of dollars in “training costs.”
In reality, these so-called training programs frequently involved routine onboarding or minimal instruction, yet drivers were threatened with substantial repayment demands—as much as $10,000.
AB-692 strengthens California’s long-standing prohibition against contracts that restrain someone from engaging in a lawful profession, trade, or business.
Understanding Your Rights Under AB-692
In practical terms, the law limits an employer’s ability to enforce agreements that function as financial penalties for leaving a job. If a training repayment requirement effectively locks a driver into a position or discourages them from seeking better opportunities, it may now be unlawful.
For commercial drivers, this means greater mobility within the industry. Drivers who wish to move to another carrier for better pay, improved routes, or safer working conditions may no longer face the same fear of crushing debt.
The law aims to prevent companies from using repayment clauses as leverage to retain workers against their will, and control their ability to do their job safely when threatened with unsafe or unlawful driving practices, such as speeding to make a deliver on schedule.
However, AB-692 does not prohibit legitimate, clearly defined educational agreements where the training is voluntary, transferable, and truly provides value beyond the employer’s immediate needs.
For instance, when a trucking company offers to pay for CDL driving school in exchange for immediate employment. Agreements that are vague, inflated, or structured primarily to deter resignation are likely to face legal scrutiny.
Commercial drivers should review any employment contract carefully and seek clarification about repayment provisions. Potential employees are to be given five business days to review their employment contract before signing.
With AB-692 now in effect, trucking companies operating in California must reassess their contract practices to ensure compliance, while drivers gain stronger protections against restrictive employment terms.
This legal shift allows drivers to prioritize their safety and their records over their current employer. They can now focus on avoiding commercial speeding tickets without financial coercion. If you signed a contract after 1 January 2026, you have rights.
If a company violates AB-692, it may face significant legal penalties. Drivers can recover actual damages or a statutory minimum of $5,000.
Avoiding the Consequences of Speeding in a CMV
On SR-99 and I-5 in Fresno County and across California, safety is paramount. Speeding in a CMV can be expensive. Some CDL holders pay between $367 and $800. However, a conviction for misdemeanor speeding in a CMV could cost in excess of $1000.
Further, the impact to the driver’s budget could be far-reaching. It could add CA DMV NOTS points and FMCSA CSA severity points.
While there are no steep mountain grades, like the Grapevine, you may encounter reduced speed limits in Fresno County due to construction or when entering urbanized areas. Any speeding in a CMV in a construction zone is a serious offense.
A conviction for a serious offense can devastate your professional driving career. It adds 1.5 points to your DMV record and can impact your PSP. Two such convictions in three years can lead to the driver’s disqualification from interstate cargo delivery for sixty days or more.
In Fresno County, CA, traffic court judges decide these traffic tickets. Typically, the DA or prosecutor is not involved with a traffic infraction. However, for a misdemeanor like excessive speeding, going 15 or more mph over the statewide 55-mph commercial vehicle speed limit, they do.
“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.
CDL holders in the Central Valley understand that they should ask Bigger & Harman about disputing their traffic tickets in court, while continuing to drive and earn.
“Bigger & Harmen APC are outstanding attorneys. I have a CDL license and received a minor traffic ticket in California and did not need any points on my license since I have a clean driving record. These attorneys got it dismissed. I highly recommend them and will use again if needed. Outstanding service. A big thank you.”—Jarrette S
Consult Bigger & Harman About Speeding in a CMV in Fresno County, CA
The portion of this blog about AB-692 is FYI only. However, if you’ve been ticketed for speeding in a CMV, call Bigger & Harman at 661-367-8232—se habla Español.
Our legal team focuses entirely on traffic defense. We understand how to negotiate a reduced penalty, dispute undependable radar evidence, or petition for a dismissal if warranted.
Schedule your free initial consultation today via attorney@biggerharmanlaw.com or through our secure and convenient contact form.
Download our e-book, Protecting Your Commercial Driver License.
❓ Frequently Asked Questions (FAQ) Section
Q: Does AB-692 apply to contracts I signed back in 2025 or before?
A: No, the amendment applies to contracts entered into on or after January 1, 2026. Older agreements must still comply with existing California wage and hour laws. If you have a question about a contract, you should consult an attorney versed in CA labor laws.
Q: Is speeding in a CMV 15 mph over the 55-mph limit a "serious offense" in Fresno, CA?
A: Yes, speeding 15 or more mph over the statewide 55 mph speed limit for CMVs is a misdemeanor in CA (although it could be charged as an infraction), and a serious offense at the DOT FMCSA level, which could lead to a driver disqualification. If you have been ticketed, consult a CA traffic attorney immediately.
Q: What should I do if my carrier threatens me with a TRAP debt if I don’t deliver a load on time?
A: First, you must consider your overall driving career and how speeding in a CMV could impact it. Otherwise, you should seek legal counsel to review your specific employment contract. Many of these "stay-or-pay" provisions are now illegal under AB-692 after 1 January 2026.
References:
CA Vehicle Code Sections 22406 & 22406.1, Speed Laws.
49 CFR Part 383.51, Paragraph 6.2.5, Disqualification of Drivers.
The Cornell Law School LII WEX Definitions: Misdemeanor.
AB-692, Kalra. Employment: Contracts in Restraint of Trade