Contractor Liability ‘Job Killer’ Bill Goes to Governor​​​​​​

Aug 29 2014 - Workers' Compensation, Workplace Policies - HRWatchdog

job-killersA California Chamber of Commerce-opposed “job killer” bill that forces one company to ensure the wage-and-hour obligations of another passed the Legislature and is on its way to the governor’s desk.

AB 1897, (R. Hernández; D-West Covina), unfairly imposes liability on a contracting entity for the contractor’s wage and hour violations and lack of workers’ compensation coverage despite the lack of any evidence that the contracting entity controlled the working conditions or wages of the contractor’s employees.

In opposing AB 1897, the CalChamber and a coalition of business and employer organizations has pointed out that the bill:

  • Holds an innocent business liable for the employment obligations of another employer; and
  • Will create significant litigation.

Moreover, adequate protections already exist for documented problems with contracting.

Action Needed

The CalChamber is urging members to contact the Governor to ask that he veto AB 1897. An easy-to-edit sample letter is available at​.

Staff Contact: Jennifer Barrera

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