Any property put up by an employee, or applicant as a part of the contract of employment, directly or indirectly, shall be deemed to be put up as a bond and is subject to the provisions of this article whether the property is put up on a note or as a loan or an investment and regardless of the wording of the agreement under which it is put up.

(Enacted by Stats. 1937, Ch. 90.)

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Terms Used In California Labor Code 406

  • applicant: means an applicant for employment. See California Labor Code 400
  • Contract: A legal written agreement that becomes binding when signed.