California Assembly Bill AB1677

California 2019-2020 Regular Session

• Introduced: 2/22/19
• Refer: 3/25/19
• Report Pass: 3/25/19
• Refer: 3/26/19
• Report Pass: 4/25/19
• Refer: 4/25/19
• Refer: 5/8/19
• Report Pass: 5/16/19
• Engrossed: 5/29/19
• Refer: 5/30/19
• Refer: 6/12/19
• Report Pass: 6/19/19
• Refer: 6/19/19
• Report Pass: 6/26/19
• Refer: 6/26/19
• Report Pass: 7/3/19
• Refer: 7/3/19
• Refer: 8/12/19
• Report Pass: 8/30/19
• Enrolled: 9/12/19
• Vetoed: 10/12/19

Caption

Call centers: protections.

Impact

The passage of AB 1677 directly modifies existing labor laws by imposing strict notification requirements for employers intending to move call center jobs out of the state. Additionally, it provides for significant civil penalties, which can reach up to $10,000 per day for non-compliance with the notification mandate. These penalties are intended to deter employers from relocating jobs without due consideration for their workforce, effectively promoting the retention of call center jobs within California.

Summary

Assembly Bill 1677, also known as the Protect Call Center Jobs Act of 2019, establishes new regulations aimed at protecting call center jobs in California by requiring employers to notify the Labor Commissioner at least 120 days in advance of any plans to relocate customer service operations outside the country. This bill was introduced to address concerns regarding job losses linked to offshoring, particularly in the context of call centers that provide essential customer service functions. The measure seeks to provide greater job security for employees and hold employers accountable for their relocation decisions.

Sentiment

The general sentiment around AB 1677 appears to be supportive among labor advocates and affected employees, who view the bill as a crucial step toward safeguarding jobs and protecting workers' rights. However, some business groups expressed concerns about potential burdens caused by the regulations, arguing that the strict guidelines could deter investment and hinder business flexibility. This polarized sentiment reflects a broader debate on balancing job protection measures with economic competitiveness in the state.

Contention

Notable points of contention concerning AB 1677 focus on its potential economic impact. Supporters argue that the bill will reduce job losses through proactive employer engagement, while critics claim it could lead to reduced investment in California as companies may seek more flexible regulatory environments elsewhere. Furthermore, the provision that blocks employers who violate the notification rules from receiving state grants or tax credits for five years has raised concerns about the ramifications for businesses reliant on state support.