California Assembly Bill AB1897 Amended / Bill

 BILL NUMBER: AB 1897AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 10, 2014 AMENDED IN ASSEMBLY MARCH 28, 2014 INTRODUCED BY Assembly Member Roger Hernndez FEBRUARY 19, 2014 An act to add Section 2810.3 to the Labor Code, relating to  privateemployment   private employment  . LEGISLATIVE COUNSEL'S DIGEST AB 1897, as amended, Roger Hernndez. Labor contracting: client liability. Existing law regulates the terms and conditions of employment and establishes specified obligations of employers to employees. Existing law prohibits a person or entity from entering into a contract for labor or services with a construction, farm labor, garment, janitorial, security guard, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include sufficient funds for the contractor to comply with laws or regulations governing the labor or services to be provided. This bill would require a client employer, as defined, to share with a labor contractor all  civil  legal responsibility and  civil  liability for the payment of wages, the failure to report and pay all required employer contributions, worker contributions, and personal income tax withholdings, and the failure to obtain valid workers' compensation coverage. The bill would define a client employer as an individual or entity that  receives   obtains or is provided  workers to perform labor or services within the usual course of business of the individual or entity from a labor contractor. The bill would define a labor contractor as an individual or entity that supplies workers, by contract or otherwise, to perform labor or services within the usual course of business for a client employer. The bill would specify that it does not prohibit client employers and labor contractors from mutually contracting for  otherwise lawful  remedies  , including indemnification,  for violations of its provisions by the other party. The bill would require a client employer or labor contractor to provide to a requesting  enforcement  agency or department, and make available for copying, information required to verify compliance with applicable state laws. The bill would authorize the Labor Commissioner  and   ,  the Division of Occupational Safety and Health  , and the Employment Development Department  to adopt necessary regulations and rules to administer and enforce the bill's provisions. The bill would provide that waiver of its provisions is contrary to public policy, void, and unenforceable. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2810.3 is added to the Labor Code, to read: 2810.3. (a) As used in this section: (1) "Client employer" means an individual or entity that  receives   obtains or is provided  workers to perform labor or services within the usual course of business of the individual or entity from a labor contractor. (2) "Labor contractor" means an individual or entity that contracts with a client employer to supply workers to perform labor or services within the usual course of business or otherwise provides workers to perform labor or services within the usual course of business for the client employer. (3) "Wages" has the same meaning provided by Section 200 and all sums payable to an employee or the state  because of   based upon  any failure to pay wages, as  may be required   provided  by law. (4) "Worker" does not include an employee who is exempt from the payment of an overtime rate of compensation for executive, administrative, and professional employees pursuant to wage orders by the Industrial Welfare Commission described in Section 515. (b) A client employer shall share with a labor contractor all  civil  legal responsibility and  civil  liability for the following: (1) The payment of wages to workers provided by a labor contractor. (2) The failure to report and pay all required employer contributions, worker contributions, and personal income tax withholdings as required by the Unemployment Insurance Code. (3) Failure to  obtain   secure  valid workers' compensation coverage as required by  law   Section 3700  . (c) A client employer shall not shift to the labor contractor any legal duties or liabilities under the provisions of Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor. (d) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other liability or requirement established by statute or common law. (e) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any  otherwise lawful  remedies against a labor contractor  , including, but not limited to,   for  indemnification for liability created by acts of a labor contractor. (f) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any  otherwise lawful  remedies against a client employer  , including, but not limited to,   for  indemnification for liability created by acts of a client employer. (g) Upon request by a state  enforcement  agency or department, a client employer or a labor contractor shall provide to the agency or department any information required to verify compliance with applicable state laws. Upon request, these records shall be made available promptly for inspection, and the state agency or department shall be permitted to copy them. (h) The Labor Commissioner  and the Division of Occupational Safety and Health  may adopt regulations and rules of practice and procedure necessary to administer and enforce  this section   the provisions of subdivisions (b) and (g) that are under his or her jurisdiction  .  (i) The Division of Occupational Safety and Health may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (c) and (g) that are under its jurisdiction.   (j) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (g) that are under its jurisdiction.   (i)   (k)  A waiver of this section is contrary to public policy, and is void and unenforceable.