Bill protecting employers who rely in good faith on government advice fails passage

By CMTA Staff

Capitol Update, May 11, 2012 Share this on FacebookTweet thisEmail this to a friend

SB 1374 (Tom Harman, R-Huntington Beach), which would have provided employers an affirmative defense when relying in good faith on state government advice regarding compliance with its laws and regulations, failed passage this week in the Senate Judiciary Committee on a partisan vote.

California has more than 500 agencies responsible for interpreting and enforcing laws.  Individuals and employers are expected and encouraged to seek out guidance and information from these agencies to determine how to comply with the state’s numerous regulations.  Ironically, those seeking guidance from an agency and relying on it are given no protection or benefit if litigation is ultimately filed to challenge the agency’s advice.

SB 1374 would have eliminated this problem by providing Californians the security in knowing that their actions would have been protected when legally challenged if based upon the advice received from the agency.  SB 1374 was supported by CMTA and other numerous business organizations.

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