“Job Killer” Bills Move to Next House​​​​

May 30 2014 - Benefits, Minimum Wage, Workers' Compensation - HRWatchdog

job-killersThree California Chamber of Commerce-opposed “job killer” bills passed their house of origin yesterday:

  • AB 1522 — would mandate that all employers provide paid sick leave;
  • AB 1897 — would make contracting entities liable for the contractor’s wage-and-hour violations; and
  • SB 935 — would tie the minimum wage to inflation.

Paid Sick Leave

AB 1522 (Gonzalez; D-San Diego) would require all employers, large and small, to provide all employees in California with paid sick leave. AB 1522 also threatens employers with statutory penalties, as well as litigation for alleged violations.

In opposing AB 1522, the CalChamber notes that although many employers voluntarily offer sick leave for full-time employees, expanding that benefit to mandate paid sick leave for temporary, seasonal and part-time employees will create a huge burden on employers. The bill also creates a private right of action for employees and unions, thereby dramatically increasing an employer’s risk for legal fees and costs. The CalChamber raised other concerns as well.

Unfairly Imposes Liability

AB 1897 (Hernandez; D-West Covina) would impose liability on any contracting entity for the contractor’s wage and hour violations, lack of workers’ compensation coverage, and/or failure to remit employee contributions, despite the lack of any evidence that the contracting entity controlled the working conditions or wages of the contractor’s employees.

The CalChamber has pointed out that the bill would unfairly hold liable the overwhelming majority of employers in California for the wage-and-hour violations of another that they could neither control nor prevent.

Minimum Wage

SB 935 (Leno; D- San Francisco) would increase employer costs by increasing the minimum wage to $13 by 2017 and then increased thereafter according to the Consumer Price Index.

Please visit CalChamber’s Daily Headlines for complete coverage of these three “job killer” bills.

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