California 2019-2020 Regular Session

California Assembly Bill AB3240 Latest Draft

Bill / Amended Version Filed 05/05/2020

                            Amended IN  Assembly  May 05, 2020 Amended IN  Assembly  May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3240Introduced by Assembly Member GrayFebruary 21, 2020 An act to add Section 2803.7 to the Labor Code, and to add Section 17131.12 to the Revenue and Taxation Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTAB 3240, as amended, Gray. Labor disputes: strike pay. strikes: health care coverage.Existing law prohibits an employer from discontinuing or changing coverage for medical or other health benefits for its employees without providing specified notice of the termination or change at least 15 days in advance.This bill would prohibit an employer of 100 or more employees from terminating, reducing, or modifying the employers contribution to an employees health care coverage while the employee is engaged in a lawful strike.Existing law, the Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill would exclude strike pay, as defined, from gross income for taxation purposes.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 2803.7 is added to the Labor Code, to read:2803.7. An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employers contribution to the employees health care coverage for the duration of the employees participation in a lawful strike. SEC. 2.Section 17131.12 is added to the Revenue and Taxation Code, to read:17131.12.Gross income does not include strike pay, as that term is defined in Section 1259 of the Unemployment Insurance Code.

 Amended IN  Assembly  May 05, 2020 Amended IN  Assembly  May 04, 2020 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 3240Introduced by Assembly Member GrayFebruary 21, 2020 An act to add Section 2803.7 to the Labor Code, and to add Section 17131.12 to the Revenue and Taxation Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTAB 3240, as amended, Gray. Labor disputes: strike pay. strikes: health care coverage.Existing law prohibits an employer from discontinuing or changing coverage for medical or other health benefits for its employees without providing specified notice of the termination or change at least 15 days in advance.This bill would prohibit an employer of 100 or more employees from terminating, reducing, or modifying the employers contribution to an employees health care coverage while the employee is engaged in a lawful strike.Existing law, the Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill would exclude strike pay, as defined, from gross income for taxation purposes.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Assembly  May 05, 2020 Amended IN  Assembly  May 04, 2020

Amended IN  Assembly  May 05, 2020
Amended IN  Assembly  May 04, 2020

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

 Assembly Bill 

No. 3240

Introduced by Assembly Member GrayFebruary 21, 2020

Introduced by Assembly Member Gray
February 21, 2020

 An act to add Section 2803.7 to the Labor Code, and to add Section 17131.12 to the Revenue and Taxation Code, relating to employment. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 3240, as amended, Gray. Labor disputes: strike pay. strikes: health care coverage.

Existing law prohibits an employer from discontinuing or changing coverage for medical or other health benefits for its employees without providing specified notice of the termination or change at least 15 days in advance.This bill would prohibit an employer of 100 or more employees from terminating, reducing, or modifying the employers contribution to an employees health care coverage while the employee is engaged in a lawful strike.Existing law, the Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. This bill would exclude strike pay, as defined, from gross income for taxation purposes.

Existing law prohibits an employer from discontinuing or changing coverage for medical or other health benefits for its employees without providing specified notice of the termination or change at least 15 days in advance.

This bill would prohibit an employer of 100 or more employees from terminating, reducing, or modifying the employers contribution to an employees health care coverage while the employee is engaged in a lawful strike.

Existing law, the Personal Income Tax Law, in conformity with federal income tax law, generally defines gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income. 



This bill would exclude strike pay, as defined, from gross income for taxation purposes.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 2803.7 is added to the Labor Code, to read:2803.7. An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employers contribution to the employees health care coverage for the duration of the employees participation in a lawful strike. SEC. 2.Section 17131.12 is added to the Revenue and Taxation Code, to read:17131.12.Gross income does not include strike pay, as that term is defined in Section 1259 of the Unemployment Insurance Code.

The people of the State of California do enact as follows:

## The people of the State of California do enact as follows:

SECTION 1. Section 2803.7 is added to the Labor Code, to read:2803.7. An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employers contribution to the employees health care coverage for the duration of the employees participation in a lawful strike. 

SECTION 1. Section 2803.7 is added to the Labor Code, to read:

### SECTION 1.

2803.7. An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employers contribution to the employees health care coverage for the duration of the employees participation in a lawful strike. 

2803.7. An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employers contribution to the employees health care coverage for the duration of the employees participation in a lawful strike. 

2803.7. An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employers contribution to the employees health care coverage for the duration of the employees participation in a lawful strike. 



2803.7. An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employers contribution to the employees health care coverage for the duration of the employees participation in a lawful strike. 





Gross income does not include strike pay, as that term is defined in Section 1259 of the Unemployment Insurance Code.