Amended IN Assembly April 09, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2754Introduced by Assembly Member RendonFebruary 15, 2024An act to amend Sections 2810 and 2810.3 of the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTAB 2754, as amended, Rendon. Employment contracts and agreements: sufficient funds: liability.(1) Existing law prohibits a person or entity from entering into a contract or agreement for labor or services with specified types of contractors if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided. Existing law creates a rebuttable presumption affecting the burden of proof that there has been no violation of the above-described prohibition if the contract meets specified requirements, including being in a single document and containing a description of the labor or services to be provided. a list of the current local, state, and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws and regulations.This bill would apply these provisions to motor carriers. carriers, except as specified. The bill would include in the requirements for the rebuttable presumption described above that the contract include a list of the current local, state, and federal motor carrier authority or registration and a copy of any agreement executed by an independent contractor identified pursuant to the provisions described above. The bill would define motor carriers for these purposes to mean an entity that utilizes commercial drivers to move containerized freight.(2) Existing law requires a client employer to share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for the payment of wages and the failure to obtain valid workers compensation coverage. Existing law also prohibits a client employer from shifting to the labor contractor legal duties or liabilities under workplace safety provisions with respect to workers provided by the labor contractor. Existing law defines terms for these purposes and authorizes the Labor Commissioner to adopt regulations and rules of practice and procedure necessary to administer and enforce these provisions. Existing law excludes certain types of employers from these provisions, including a client employer that is not a motor carrier of property based solely on the employers use of a third-party motor carrier of property with interstate or intrastate operating authority to ship or receive freight, and a client employer that is a motor carrier of property subcontracting with, or otherwise engaging, another motor carrier of property to provide transportation services using its own employees and commercial motor vehicles. This bill would delete the above-described exclusions for those client employers. The bill would define a client employer to include a business entity that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite, as specified. The bill would also require a client employer to share with a labor contractor all civil legal responsibility and civil liability for workers supplied by that labor contractor with respect to the reimbursement of and indemnification for business expenses and losses. The bill would expand the definition of labor contractor under these provisions to include providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority.Existing law does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor.This bill would revise that provision to specify that a client employer will be liable if either that client employer or the labor contractor misclassifies an employee as an independent contractor.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 2810 of the Labor Code is amended to read:2810. (a) A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.(b) There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).(c) Subdivision (a) does not apply to a any of the following:(1) A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a agreement.(2) A person who enters into a contract or agreement for labor or services to be performed on that persons home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.(3) A contract with a motor carrier contractor involving 30 days or fewer of cumulative labor or services within a one-year period.(d) To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:(1) The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor through whom the labor or services are to be provided.(2) A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.(3) The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(4) The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(5) The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.(6) The address of any real property to be used to house workers in connection with the contract or agreement.(7) The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.(8) The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for services under the contract or agreement.(9) The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a both of the following:(A) A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.(B) A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.(10) The signatures of all parties, and the date the contract or agreement was signed.(e) (1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.(2) If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.(f) A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(g) (1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employees actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.(2) An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.(h) The phrase construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(i) (1) The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.(2) The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.(3) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.(j) For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.(k) For the purposes of this section, motor carrier means an entity that utilizes commercial drivers to move containerized freight.SEC. 2. Section 2810.3 of the Labor Code is amended to read:2810.3. (a) As used in this section:(1) (A) Client employer means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.(B) Client employer includes a business entity, regardless of its form, that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite of the client employer, regardless of the operating authority under which the containerized freight is moved. moved, unless any of the following applies:(i) The freight container is not full.(ii) The shipments occur fewer than 11 times in a one-year period.(iii) The contract period is less than 31 cumulative days in a one-year period.(C) Client employer does not include any of the following:(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.(2) Labor has the same meaning provided by Section 200.(3) Labor contractor means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employers usual course of business, including providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority. Labor contractor does not include any of the following:(A) A bona fide nonprofit, community-based organization that provides services to workers.(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.(4) Wages has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.(5) 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.(6) Usual course of business means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for all of the following:(1) The payment of wages.(2) Failure to secure valid workers compensation coverage as required by Section 3700.(3) The reimbursement of, and indemnification for, business expenditures and losses.(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the workers representative shall notify the client employer of violations under subdivision (b).(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.(i) 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 within its possession, custody, or control 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. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioners jurisdiction.(k) 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 (i) that are under its jurisdiction.(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.(m) A waiver of this section is contrary to public policy, and is void and unenforceable.(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor, except that a client employer shall be liable if either it or the labor contractor misclassifies an employee as an independent contractor.(p) This section does not impose liability on the following:(1) A client employer that is not a household mover based solely on the employers use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.(2) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.(3) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.(4) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractors vehicles.
Amended IN Assembly April 09, 2024 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2754Introduced by Assembly Member RendonFebruary 15, 2024An act to amend Sections 2810 and 2810.3 of the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTAB 2754, as amended, Rendon. Employment contracts and agreements: sufficient funds: liability.(1) Existing law prohibits a person or entity from entering into a contract or agreement for labor or services with specified types of contractors if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided. Existing law creates a rebuttable presumption affecting the burden of proof that there has been no violation of the above-described prohibition if the contract meets specified requirements, including being in a single document and containing a description of the labor or services to be provided. a list of the current local, state, and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws and regulations.This bill would apply these provisions to motor carriers. carriers, except as specified. The bill would include in the requirements for the rebuttable presumption described above that the contract include a list of the current local, state, and federal motor carrier authority or registration and a copy of any agreement executed by an independent contractor identified pursuant to the provisions described above. The bill would define motor carriers for these purposes to mean an entity that utilizes commercial drivers to move containerized freight.(2) Existing law requires a client employer to share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for the payment of wages and the failure to obtain valid workers compensation coverage. Existing law also prohibits a client employer from shifting to the labor contractor legal duties or liabilities under workplace safety provisions with respect to workers provided by the labor contractor. Existing law defines terms for these purposes and authorizes the Labor Commissioner to adopt regulations and rules of practice and procedure necessary to administer and enforce these provisions. Existing law excludes certain types of employers from these provisions, including a client employer that is not a motor carrier of property based solely on the employers use of a third-party motor carrier of property with interstate or intrastate operating authority to ship or receive freight, and a client employer that is a motor carrier of property subcontracting with, or otherwise engaging, another motor carrier of property to provide transportation services using its own employees and commercial motor vehicles. This bill would delete the above-described exclusions for those client employers. The bill would define a client employer to include a business entity that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite, as specified. The bill would also require a client employer to share with a labor contractor all civil legal responsibility and civil liability for workers supplied by that labor contractor with respect to the reimbursement of and indemnification for business expenses and losses. The bill would expand the definition of labor contractor under these provisions to include providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority.Existing law does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor.This bill would revise that provision to specify that a client employer will be liable if either that client employer or the labor contractor misclassifies an employee as an independent contractor.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly April 09, 2024
Amended IN Assembly April 09, 2024
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 2754
Introduced by Assembly Member RendonFebruary 15, 2024
Introduced by Assembly Member Rendon
February 15, 2024
An act to amend Sections 2810 and 2810.3 of the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2754, as amended, Rendon. Employment contracts and agreements: sufficient funds: liability.
(1) Existing law prohibits a person or entity from entering into a contract or agreement for labor or services with specified types of contractors if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided. Existing law creates a rebuttable presumption affecting the burden of proof that there has been no violation of the above-described prohibition if the contract meets specified requirements, including being in a single document and containing a description of the labor or services to be provided. a list of the current local, state, and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws and regulations.This bill would apply these provisions to motor carriers. carriers, except as specified. The bill would include in the requirements for the rebuttable presumption described above that the contract include a list of the current local, state, and federal motor carrier authority or registration and a copy of any agreement executed by an independent contractor identified pursuant to the provisions described above. The bill would define motor carriers for these purposes to mean an entity that utilizes commercial drivers to move containerized freight.(2) Existing law requires a client employer to share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for the payment of wages and the failure to obtain valid workers compensation coverage. Existing law also prohibits a client employer from shifting to the labor contractor legal duties or liabilities under workplace safety provisions with respect to workers provided by the labor contractor. Existing law defines terms for these purposes and authorizes the Labor Commissioner to adopt regulations and rules of practice and procedure necessary to administer and enforce these provisions. Existing law excludes certain types of employers from these provisions, including a client employer that is not a motor carrier of property based solely on the employers use of a third-party motor carrier of property with interstate or intrastate operating authority to ship or receive freight, and a client employer that is a motor carrier of property subcontracting with, or otherwise engaging, another motor carrier of property to provide transportation services using its own employees and commercial motor vehicles. This bill would delete the above-described exclusions for those client employers. The bill would define a client employer to include a business entity that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite, as specified. The bill would also require a client employer to share with a labor contractor all civil legal responsibility and civil liability for workers supplied by that labor contractor with respect to the reimbursement of and indemnification for business expenses and losses. The bill would expand the definition of labor contractor under these provisions to include providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority.Existing law does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor.This bill would revise that provision to specify that a client employer will be liable if either that client employer or the labor contractor misclassifies an employee as an independent contractor.
(1) Existing law prohibits a person or entity from entering into a contract or agreement for labor or services with specified types of contractors if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided. Existing law creates a rebuttable presumption affecting the burden of proof that there has been no violation of the above-described prohibition if the contract meets specified requirements, including being in a single document and containing a description of the labor or services to be provided. a list of the current local, state, and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws and regulations.
This bill would apply these provisions to motor carriers. carriers, except as specified. The bill would include in the requirements for the rebuttable presumption described above that the contract include a list of the current local, state, and federal motor carrier authority or registration and a copy of any agreement executed by an independent contractor identified pursuant to the provisions described above. The bill would define motor carriers for these purposes to mean an entity that utilizes commercial drivers to move containerized freight.
(2) Existing law requires a client employer to share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for the payment of wages and the failure to obtain valid workers compensation coverage. Existing law also prohibits a client employer from shifting to the labor contractor legal duties or liabilities under workplace safety provisions with respect to workers provided by the labor contractor. Existing law defines terms for these purposes and authorizes the Labor Commissioner to adopt regulations and rules of practice and procedure necessary to administer and enforce these provisions. Existing law excludes certain types of employers from these provisions, including a client employer that is not a motor carrier of property based solely on the employers use of a third-party motor carrier of property with interstate or intrastate operating authority to ship or receive freight, and a client employer that is a motor carrier of property subcontracting with, or otherwise engaging, another motor carrier of property to provide transportation services using its own employees and commercial motor vehicles.
This bill would delete the above-described exclusions for those client employers. The bill would define a client employer to include a business entity that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite, as specified. The bill would also require a client employer to share with a labor contractor all civil legal responsibility and civil liability for workers supplied by that labor contractor with respect to the reimbursement of and indemnification for business expenses and losses. The bill would expand the definition of labor contractor under these provisions to include providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority.
Existing law does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor.
This bill would revise that provision to specify that a client employer will be liable if either that client employer or the labor contractor misclassifies an employee as an independent contractor.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 2810 of the Labor Code is amended to read:2810. (a) A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.(b) There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).(c) Subdivision (a) does not apply to a any of the following:(1) A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a agreement.(2) A person who enters into a contract or agreement for labor or services to be performed on that persons home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.(3) A contract with a motor carrier contractor involving 30 days or fewer of cumulative labor or services within a one-year period.(d) To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:(1) The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor through whom the labor or services are to be provided.(2) A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.(3) The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(4) The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(5) The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.(6) The address of any real property to be used to house workers in connection with the contract or agreement.(7) The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.(8) The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for services under the contract or agreement.(9) The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a both of the following:(A) A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.(B) A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.(10) The signatures of all parties, and the date the contract or agreement was signed.(e) (1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.(2) If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.(f) A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(g) (1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employees actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.(2) An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.(h) The phrase construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(i) (1) The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.(2) The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.(3) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.(j) For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.(k) For the purposes of this section, motor carrier means an entity that utilizes commercial drivers to move containerized freight.SEC. 2. Section 2810.3 of the Labor Code is amended to read:2810.3. (a) As used in this section:(1) (A) Client employer means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.(B) Client employer includes a business entity, regardless of its form, that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite of the client employer, regardless of the operating authority under which the containerized freight is moved. moved, unless any of the following applies:(i) The freight container is not full.(ii) The shipments occur fewer than 11 times in a one-year period.(iii) The contract period is less than 31 cumulative days in a one-year period.(C) Client employer does not include any of the following:(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.(2) Labor has the same meaning provided by Section 200.(3) Labor contractor means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employers usual course of business, including providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority. Labor contractor does not include any of the following:(A) A bona fide nonprofit, community-based organization that provides services to workers.(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.(4) Wages has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.(5) 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.(6) Usual course of business means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for all of the following:(1) The payment of wages.(2) Failure to secure valid workers compensation coverage as required by Section 3700.(3) The reimbursement of, and indemnification for, business expenditures and losses.(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the workers representative shall notify the client employer of violations under subdivision (b).(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.(i) 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 within its possession, custody, or control 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. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioners jurisdiction.(k) 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 (i) that are under its jurisdiction.(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.(m) A waiver of this section is contrary to public policy, and is void and unenforceable.(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor, except that a client employer shall be liable if either it or the labor contractor misclassifies an employee as an independent contractor.(p) This section does not impose liability on the following:(1) A client employer that is not a household mover based solely on the employers use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.(2) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.(3) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.(4) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractors vehicles.
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 2810 of the Labor Code is amended to read:2810. (a) A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.(b) There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).(c) Subdivision (a) does not apply to a any of the following:(1) A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a agreement.(2) A person who enters into a contract or agreement for labor or services to be performed on that persons home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.(3) A contract with a motor carrier contractor involving 30 days or fewer of cumulative labor or services within a one-year period.(d) To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:(1) The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor through whom the labor or services are to be provided.(2) A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.(3) The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(4) The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(5) The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.(6) The address of any real property to be used to house workers in connection with the contract or agreement.(7) The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.(8) The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for services under the contract or agreement.(9) The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a both of the following:(A) A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.(B) A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.(10) The signatures of all parties, and the date the contract or agreement was signed.(e) (1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.(2) If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.(f) A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(g) (1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employees actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.(2) An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.(h) The phrase construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(i) (1) The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.(2) The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.(3) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.(j) For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.(k) For the purposes of this section, motor carrier means an entity that utilizes commercial drivers to move containerized freight.
SECTION 1. Section 2810 of the Labor Code is amended to read:
### SECTION 1.
2810. (a) A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.(b) There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).(c) Subdivision (a) does not apply to a any of the following:(1) A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a agreement.(2) A person who enters into a contract or agreement for labor or services to be performed on that persons home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.(3) A contract with a motor carrier contractor involving 30 days or fewer of cumulative labor or services within a one-year period.(d) To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:(1) The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor through whom the labor or services are to be provided.(2) A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.(3) The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(4) The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(5) The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.(6) The address of any real property to be used to house workers in connection with the contract or agreement.(7) The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.(8) The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for services under the contract or agreement.(9) The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a both of the following:(A) A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.(B) A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.(10) The signatures of all parties, and the date the contract or agreement was signed.(e) (1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.(2) If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.(f) A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(g) (1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employees actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.(2) An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.(h) The phrase construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(i) (1) The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.(2) The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.(3) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.(j) For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.(k) For the purposes of this section, motor carrier means an entity that utilizes commercial drivers to move containerized freight.
2810. (a) A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.(b) There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).(c) Subdivision (a) does not apply to a any of the following:(1) A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a agreement.(2) A person who enters into a contract or agreement for labor or services to be performed on that persons home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.(3) A contract with a motor carrier contractor involving 30 days or fewer of cumulative labor or services within a one-year period.(d) To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:(1) The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor through whom the labor or services are to be provided.(2) A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.(3) The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(4) The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(5) The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.(6) The address of any real property to be used to house workers in connection with the contract or agreement.(7) The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.(8) The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for services under the contract or agreement.(9) The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a both of the following:(A) A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.(B) A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.(10) The signatures of all parties, and the date the contract or agreement was signed.(e) (1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.(2) If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.(f) A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(g) (1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employees actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.(2) An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.(h) The phrase construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(i) (1) The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.(2) The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.(3) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.(j) For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.(k) For the purposes of this section, motor carrier means an entity that utilizes commercial drivers to move containerized freight.
2810. (a) A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.(b) There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).(c) Subdivision (a) does not apply to a any of the following:(1) A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a agreement.(2) A person who enters into a contract or agreement for labor or services to be performed on that persons home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.(3) A contract with a motor carrier contractor involving 30 days or fewer of cumulative labor or services within a one-year period.(d) To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:(1) The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor through whom the labor or services are to be provided.(2) A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.(3) The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(4) The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(5) The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.(6) The address of any real property to be used to house workers in connection with the contract or agreement.(7) The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.(8) The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for services under the contract or agreement.(9) The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a both of the following:(A) A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.(B) A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.(10) The signatures of all parties, and the date the contract or agreement was signed.(e) (1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.(2) If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.(f) A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(g) (1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employees actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.(2) An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.(h) The phrase construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.(i) (1) The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.(2) The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.(3) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.(j) For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.(k) For the purposes of this section, motor carrier means an entity that utilizes commercial drivers to move containerized freight.
2810. (a) A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.
(b) There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).
(c) Subdivision (a) does not apply to a any of the following:
(1) A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a agreement.
(2) A person who enters into a contract or agreement for labor or services to be performed on that persons home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.
(3) A contract with a motor carrier contractor involving 30 days or fewer of cumulative labor or services within a one-year period.
(d) To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:
(1) The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor through whom the labor or services are to be provided.
(2) A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.
(3) The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.
(4) The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.
(5) The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.
(6) The address of any real property to be used to house workers in connection with the contract or agreement.
(7) The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.
(8) The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor for services under the contract or agreement.
(9) The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a both of the following:
(A) A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.
(B) A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.
(10) The signatures of all parties, and the date the contract or agreement was signed.
(e) (1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.
(2) If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.
(f) A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(g) (1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employees actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.
(2) An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.
(h) The phrase construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, motor carrier, or warehouse contractor.
(i) (1) The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.
(2) The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.
(3) A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.
(j) For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.
(k) For the purposes of this section, motor carrier means an entity that utilizes commercial drivers to move containerized freight.
SEC. 2. Section 2810.3 of the Labor Code is amended to read:2810.3. (a) As used in this section:(1) (A) Client employer means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.(B) Client employer includes a business entity, regardless of its form, that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite of the client employer, regardless of the operating authority under which the containerized freight is moved. moved, unless any of the following applies:(i) The freight container is not full.(ii) The shipments occur fewer than 11 times in a one-year period.(iii) The contract period is less than 31 cumulative days in a one-year period.(C) Client employer does not include any of the following:(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.(2) Labor has the same meaning provided by Section 200.(3) Labor contractor means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employers usual course of business, including providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority. Labor contractor does not include any of the following:(A) A bona fide nonprofit, community-based organization that provides services to workers.(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.(4) Wages has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.(5) 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.(6) Usual course of business means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for all of the following:(1) The payment of wages.(2) Failure to secure valid workers compensation coverage as required by Section 3700.(3) The reimbursement of, and indemnification for, business expenditures and losses.(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the workers representative shall notify the client employer of violations under subdivision (b).(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.(i) 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 within its possession, custody, or control 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. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioners jurisdiction.(k) 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 (i) that are under its jurisdiction.(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.(m) A waiver of this section is contrary to public policy, and is void and unenforceable.(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor, except that a client employer shall be liable if either it or the labor contractor misclassifies an employee as an independent contractor.(p) This section does not impose liability on the following:(1) A client employer that is not a household mover based solely on the employers use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.(2) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.(3) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.(4) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractors vehicles.
SEC. 2. Section 2810.3 of the Labor Code is amended to read:
### SEC. 2.
2810.3. (a) As used in this section:(1) (A) Client employer means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.(B) Client employer includes a business entity, regardless of its form, that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite of the client employer, regardless of the operating authority under which the containerized freight is moved. moved, unless any of the following applies:(i) The freight container is not full.(ii) The shipments occur fewer than 11 times in a one-year period.(iii) The contract period is less than 31 cumulative days in a one-year period.(C) Client employer does not include any of the following:(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.(2) Labor has the same meaning provided by Section 200.(3) Labor contractor means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employers usual course of business, including providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority. Labor contractor does not include any of the following:(A) A bona fide nonprofit, community-based organization that provides services to workers.(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.(4) Wages has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.(5) 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.(6) Usual course of business means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for all of the following:(1) The payment of wages.(2) Failure to secure valid workers compensation coverage as required by Section 3700.(3) The reimbursement of, and indemnification for, business expenditures and losses.(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the workers representative shall notify the client employer of violations under subdivision (b).(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.(i) 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 within its possession, custody, or control 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. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioners jurisdiction.(k) 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 (i) that are under its jurisdiction.(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.(m) A waiver of this section is contrary to public policy, and is void and unenforceable.(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor, except that a client employer shall be liable if either it or the labor contractor misclassifies an employee as an independent contractor.(p) This section does not impose liability on the following:(1) A client employer that is not a household mover based solely on the employers use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.(2) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.(3) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.(4) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractors vehicles.
2810.3. (a) As used in this section:(1) (A) Client employer means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.(B) Client employer includes a business entity, regardless of its form, that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite of the client employer, regardless of the operating authority under which the containerized freight is moved. moved, unless any of the following applies:(i) The freight container is not full.(ii) The shipments occur fewer than 11 times in a one-year period.(iii) The contract period is less than 31 cumulative days in a one-year period.(C) Client employer does not include any of the following:(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.(2) Labor has the same meaning provided by Section 200.(3) Labor contractor means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employers usual course of business, including providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority. Labor contractor does not include any of the following:(A) A bona fide nonprofit, community-based organization that provides services to workers.(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.(4) Wages has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.(5) 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.(6) Usual course of business means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for all of the following:(1) The payment of wages.(2) Failure to secure valid workers compensation coverage as required by Section 3700.(3) The reimbursement of, and indemnification for, business expenditures and losses.(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the workers representative shall notify the client employer of violations under subdivision (b).(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.(i) 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 within its possession, custody, or control 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. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioners jurisdiction.(k) 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 (i) that are under its jurisdiction.(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.(m) A waiver of this section is contrary to public policy, and is void and unenforceable.(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor, except that a client employer shall be liable if either it or the labor contractor misclassifies an employee as an independent contractor.(p) This section does not impose liability on the following:(1) A client employer that is not a household mover based solely on the employers use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.(2) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.(3) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.(4) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractors vehicles.
2810.3. (a) As used in this section:(1) (A) Client employer means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.(B) Client employer includes a business entity, regardless of its form, that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite of the client employer, regardless of the operating authority under which the containerized freight is moved. moved, unless any of the following applies:(i) The freight container is not full.(ii) The shipments occur fewer than 11 times in a one-year period.(iii) The contract period is less than 31 cumulative days in a one-year period.(C) Client employer does not include any of the following:(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.(2) Labor has the same meaning provided by Section 200.(3) Labor contractor means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employers usual course of business, including providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority. Labor contractor does not include any of the following:(A) A bona fide nonprofit, community-based organization that provides services to workers.(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.(4) Wages has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.(5) 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.(6) Usual course of business means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for all of the following:(1) The payment of wages.(2) Failure to secure valid workers compensation coverage as required by Section 3700.(3) The reimbursement of, and indemnification for, business expenditures and losses.(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the workers representative shall notify the client employer of violations under subdivision (b).(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.(i) 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 within its possession, custody, or control 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. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioners jurisdiction.(k) 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 (i) that are under its jurisdiction.(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.(m) A waiver of this section is contrary to public policy, and is void and unenforceable.(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor, except that a client employer shall be liable if either it or the labor contractor misclassifies an employee as an independent contractor.(p) This section does not impose liability on the following:(1) A client employer that is not a household mover based solely on the employers use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.(2) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.(3) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.(4) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractors vehicles.
2810.3. (a) As used in this section:
(1) (A) Client employer means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.
(B) Client employer includes a business entity, regardless of its form, that utilizes a labor contractors workers to ship or receive containerized freight to or from the premises or worksite of the client employer, regardless of the operating authority under which the containerized freight is moved. moved, unless any of the following applies:
(i) The freight container is not full.
(ii) The shipments occur fewer than 11 times in a one-year period.
(iii) The contract period is less than 31 cumulative days in a one-year period.
(C) Client employer does not include any of the following:
(i) A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.
(ii) A business entity with five or fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.
(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.
(2) Labor has the same meaning provided by Section 200.
(3) Labor contractor means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employers usual course of business, including providing workers to ship or receive a client employers containerized freight to or from the client employers facility or worksite, under either the client employers operating authority, the labor contractors operating authority, or the drivers own operating authority. Labor contractor does not include any of the following:
(A) A bona fide nonprofit, community-based organization that provides services to workers.
(B) A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.
(C) A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.
(D) A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this act.
(4) Wages has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.
(5) 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.
(6) Usual course of business means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.
(b) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for all of the following:
(1) The payment of wages.
(2) Failure to secure valid workers compensation coverage as required by Section 3700.
(3) The reimbursement of, and indemnification for, business expenditures and losses.
(c) A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.
(d) At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the workers representative shall notify the client employer of violations under subdivision (b).
(e) Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.
(f) The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.
(g) This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.
(h) This section does not prohibit a labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.
(i) 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 within its possession, custody, or control 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. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.
(j) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioners jurisdiction.
(k) 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 (i) that are under its jurisdiction.
(l) The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.
(m) A waiver of this section is contrary to public policy, and is void and unenforceable.
(n) This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.
(o) This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor, except that a client employer shall be liable if either it or the labor contractor misclassifies an employee as an independent contractor.
(p) This section does not impose liability on the following:
(1) A client employer that is not a household mover based solely on the employers use of a third-party household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.
(2) A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.
(3) A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.
(4) A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractors vehicles.