Nicole Rice

Bargaining units for independent contractors to form

By Nicole Rice, Policy Director, Government Relations

Capitol Update, April 8, 2016

Manufacturers use independent contractors to perform many services critical to the production of their product; regulatory compliance and the maintenance of their facilities. A bill introduced by Assembly Member Lorena Gonzalez (D-San Diego) would make those services much more expensive and increase opportunities for litigation.

AB 1727 would giveindependent contractors in almost every industry the ability to collectively organize and negotiate with those who hire them, defined as “hosting platforms.” In simple terms, a “hosting platform” is any facility where any medium is used to connect service seekers with those would can perform the work, such as the Internet, telephone, or a website. There isn’t one company that doesn’t use a facility through some type of medium to locate and hire independent contractors. The applications could be extensive.

Once organized, these “bargaining units” could then negotiate the terms and prices of the services rendered. The units could be as small as 10 individuals, meaning you could have multiple units in varying departments depending on the different types of services such contractors provide. The bill prohibits retaliation against or termination of an individual exercising this right and is actionable under the Private Attorneys General Act and Business and Professions Code 17200 for its Sherman Act implications.

CMTA is opposed to the measure. 

Read more Labor & Employment articles

Capitol updates archive 989898989