Your Employer Made You Sign a Training Repayment Agreement, California Says That's Probably Illegal Now

Your Employer Made You Sign a Training Repayment Agreement, California Says That's Probably Illegal Now

Claire Melehani

For decades, civil litigation in California has been defined not just by trial strategy — but by discovery battles.

If you’ve ever been involved in a lawsuit, you may already know: discovery can be the longest, most expensive, and most frustrating part of a case. Endless document demands. Delays. Objections. Motions to compel.

Beginning January 1, 2026, California is introducing a rule that may change how lawsuits move forward.

The new law — California Code of Civil Procedure section 2016.090 — is designed to encourage earlier, more transparent information exchange. Here’s what that means for you.

How Discovery Became So Expensive

Before 1958, California didn’t even have formal discovery. Litigation often involved limited document exchange and, in some cases, trial by surprise.

Over time, discovery expanded significantly — especially after major revisions in 1986. While the goal was efficiency, the reality today is often the opposite.

Discovery now frequently:

• Drives up litigation costs
• Delays resolution
• Creates strategic gamesmanship
• Pressures parties into settlement based on expense

In many cases, discovery becomes the case.

What Is CCP § 2016.090?

Effective January 1, 2026, CCP § 2016.090 introduces a framework similar to Federal Rule of Civil Procedure 26.

In qualifying civil cases, parties may be required to provide early, automatic disclosures, including:

• Key documents supporting claims and defenses
• Witness information
• Damage calculations
• Insurance details
  
  

The goal is simple: reduce delay by requiring both sides to “show their cards” earlier.

Does This Law Apply Retroactively?

This is where many people get confused — and where strategy matters.

CCP § 2016.090 does not apply retroactively to cases filed before January 1, 2026.

Instead, the rule applies to:

• Civil actions filed on or after January 1, 2026, and
• Only in cases that fall within the statute’s scope

It is a procedural rule, not a contract-based rule. That means:

• It does not depend on when agreements were signed
• It applies based on when the lawsuit is filed, not when the underlying dispute arose

Why That Distinction Matters

If your dispute involves:

• A contract signed in 2024
• Conduct that occurred in 2025

…but the lawsuit is filed in 2026 or later, the new discovery rules may apply.

On the other hand:

• If your case is already pending before 2026, the new rule generally will not govern your discovery process

Important Exceptions and Limitations

CCP § 2016.090 does not apply to every case.

The law:

• Allows parties to opt out by agreement
• Excludes certain matters (including family law)
• Does not apply in cases with trial preference
• Contains additional statutory limitations

This means early disclosure is not automatic in every lawsuit — it depends on the type of case and how the parties proceed.

Will This Eliminate Discovery Battles?

No — but it may change them.

Even in federal court, where similar rules exist, disputes still happen. However, early disclosure requirements can:

• Narrow issues sooner
• Reduce surprise tactics
• Encourage earlier settlement discussions
• Limit unnecessary motion practice
  
  

For parties who want to resolve disputes efficiently, this can be a meaningful shift.

What This Means for You

If you are filing — or defending — a lawsuit in California after January 1, 2026, you should expect:

• Earlier pressure to organize your evidence
• Faster exposure of strengths and weaknesses
• Less ability to delay disclosure strategically
• Greater importance placed on pre-filing preparation
  
  

In other words, litigation strategy starts earlier than ever.

Strategy Still Matters

Even with earlier disclosures, key issues remain:

• What must be disclosed — and when
• What is protected by privilege or trade secret law
• How to preserve leverage while complying with the rule
  
  

At McLellan Law Group, LLP, we approach discovery with a clear objective: protect your position while moving efficiently toward resolution.

Preparing for 2026 Litigation

If you anticipate a dispute — whether in business, real estate, employment, or fiduciary matters — now is the time to:

• Organize key documents
• Preserve communications
• Understand your legal position early
• Develop a strategy before filing
  
  

Because under this new rule, preparation is not optional — it is a competitive advantage.

Final Takeaway

California’s new discovery rule is not about changing the substance of your case — it’s about changing the timing.

It does not apply retroactively to pending cases, but it will apply to many lawsuits filed starting in 2026, regardless of when the underlying events occurred.

The question is no longer whether discovery will happen.

It’s how early you’re ready for it.