Employee Relations update 5/30/2014
CSAC Removes Opposition to Bill Increasing Employer Liability for Contractors
CSAC joined with Los Angeles County, the California Association of Joint Powers Authorities and the California Special Districts Association in working with the author and sponsors of Assembly Bill 1897 to place a clear public agency exemption amendment in the bill when it was considered on the Assembly Floor this week. Among other things, AB 1897, by Assembly Member Roger Hernandez, would provide that a client employer share with a labor contractor all civil legal responsibility and civil liability for the following:
- The payment of wages to workers provided by a labor contractor.
- The failure to report and pay all required employercontributions, worker contributions, and personal income tax withholdings.
- Failure to secure valid workers’ compensation coverage.
CSAC worked diligently to portray the costs and issues to counties that contract for necessary services and to explain that counties as employers already ensure that applicable labor and wage laws are followed in such circumstances. Accordingly, an amendment that clearly exempts counties, cities and special districts from the provisions of AB 1897 were adopted on Thursday.