New California Laws 2026
AB 1155: Ending the choice between pay and credit in law school
By Joe O’Hanlon and Meg Czeisler E ffective Aug. 1, 2026, Assembly Bill (AB) 1155 will require California law schools to give stu- dents academic credit for externships even when paid. Traditionally, schools exercised discre- tion to prohibit students from receiving both com- pensation and school credit for externships, often forcing students to choose between financial stabil- ity and academic progress. The McGeorge School of Law Student Bar Asso- ciation sponsored the bill, and Assemblymember Mike Fong (D-Alhambra) introduced it to the floor. AB 1155 enjoyed broad-based support as it moved through the legislature, registering zero “no” votes in the Assembly and Senate before passing on Oct. 3, 2025. The parameters set forth in AB 1155 are clear. It only applies to J.D., LL.M. and S.J.D. students in good academic standing. “Externship” is field place- ment work at state agencies, nonprofits, NGOs or private firms that satisfy law school requirements. “Compensation” includes stipends, hourly wages, travel reimbursements and employer benefits. Substantively, AB 1155 does not require extern- ship sites to compensate students—that remains at the employer’s discretion. Rather, it protects stu- dents when they do secure paid externships. It pre- vents law schools from denying academic credit sim- ply because an externship is compensated, and from charging additional fees for placements. It also bars employers from requiring students to commit to fu- ture employment in exchange for pay, while protect- ing employers from workers’ compensation liability. The significance of AB 1155 lies in the socioeco- nomic equity gap in California legal education cre- ated, in part, by the intersection of steep tuition and high cost of living. The bill’s Assembly Higher Ed- ucation analysis by Kevin Powers reported striking statistics. J.D. program tuition at ABA-approved Cal- ifornia schools averages nearly $175,000 and $75,000 at California-accredited schools. This burden weighs especially heavy on first-generation law students, who comprise one-third of statewide enrollment. These costs are then compounded by location. Cal- ifornia law schools cluster in expensive metropolitan areas—Los Angeles, the Bay, San Diego and Sacra- mento—where living costs exceed the national av- erage by 20%- to 70%. Consequently, many students
must work during school to make ends meet. Enter ABA and California accreditation standards mandating experiential learning credits during law school. Routinely, schools would withhold those credits when externships were paid. Consequently, externships intensified financial pressures despite their potential as income sources. Economically disadvantaged students, disproportionately those of color, would face an impossible choice: either bear a triple burden of unpaid externship work, paid em- ployment and full-time coursework, or take out ad- ditional loans to focus on externships and school. Thirty-five percent of law students face anticipated debt exceeding $120,000. AB 1155 is finally chipping away at these econom- ic barriers, at least in most California law schools. It is notably not binding against the University of California. Instead, its requirements are “requests” upon the school’s regents, who can decide to apply them through resolution. Still, it is progress. More students will receive credit for experiential learning opportunities that also help pay the bills. In time, its impact will proliferate, advancing socioeconomic di- versity across the California legal profession at large.
Joe O’Hanlon and Meg Czeisler are attorneys at Panish | Shea | Ravipudi LLP.
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