Bad labor bills head for Senate Floor vote

By CMTA Staff

Capitol Update, Aug. 15, 2014

Three of the year’s most troubling labor and employment bills advanced to the Senate Floor this week. Together, these measures propose to significantly increase the cost and risk of manufacturing in California:

  • AB 1522 (Lorena Gonzalez, D-San Diego)
    Requires employers to provide at least three days of paid sick leave to each employee who works 30 or more days in a calendar year.
  • AB 1897 (Roger Hernandez, D-West Covina)
    Requires employers that obtain workers from third-party contractors to be legally liable and responsible for wage and hour, workers’ compensation and workplace health and safety violations.
  • AB 2416 (Mark Stone, D-Scotts Valley)
    Allows an employee or their representative to record and enforce a lien on the employer’s real or personal property, or the property where the work was performed, for alleged but unproven claims related to wage and hour, penalties and other compensation as allowed under law.

The bills were approved by the Senate Appropriations Committee on a partisan vote with Democrats in support and Republicans not voting. AB 1522 and AB 1897 were amended, but the changes were not significant enough to address our substantive concerns. Therefore, CMTA remains opposed to all three bills.

If the measures are passed by the Legislature, the Governor will decide their fate. While it’s still unclear where the Administration will ultimately land on these issues, it’s worth mentioning that the Department of Finance (DOF) just recently announced its opposition to the bills. DOF believes these policies will result in significant unbudgeted state costs and expose employers to new liabilities that could “diminish incentives for businesses to operate in California and therefore could be a sole or contributing factor to a business’ decision to close or downsize,” causing a corresponding fiscal impact on state revenues. 

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