California, Australia Contrast Worker Mobility Rules as 2027 Ban Nears for Australians Under AUD 183,100
Updated
Updated · Littler Mendelson PC · Jun 11
California, Australia Contrast Worker Mobility Rules as 2027 Ban Nears for Australians Under AUD 183,100
1 articles · Updated · Littler Mendelson PC · Jun 11
Summary
California and Australia were compared in a World Cup 2026 labor-law analysis that highlighted a widening contrast in how each jurisdiction treats worker mobility and post-employment restraints.
California already bans non-competes and, from Jan. 1, 2026, sharply limited “stay or pay” clauses that require workers to repay training, signing-bonus or relocation costs if they leave early.
The new California law leaves narrow carve-outs, including certain portable tuition costs and some upfront discretionary payments, but only with stand-alone agreements, prorated repayment and retention periods of 2 years or less.
Australia still allows some restraints under common law—except under New South Wales' separate statute—but the federal government plans 2027 reforms banning non-competes for workers below the AUD 183,100 high-income threshold, plus wage-fixing and no-poach agreements.
The comparison points to convergence: California already uses bright-line limits, while Australia is moving from case-by-case enforcement toward more defined statutory restrictions.