New California Law Affects Companies That Hire Temporary Workers
Effective, January 1, 2015, A.B. 1897 should be of particular interest to those in the agriculture, construction, trucking, health care, security, and food services industries.
California’s AB 1897 imposes joint liability on client companies when the labor contractor fails to secure workers’ compensation coverage for, or pay wages to, workers that are supplied to “client employers.”
A new California labor law (AB 1897) raises risk management issues for companies that use temporary workers or contract labor in the state, and should be of particular interest to those in the agriculture, construction, trucking, health care, security, and food services industries.
The law, which takes effect January 1, 2015, increases the potential liability for companies that use labor contractors, with particular concerns regarding workers’ compensation and employment practices liability.
In “California Labor Law Brings Risk Management Implications,” we discuss the provisions of the law, what steps to take before it goes into effect, and how it will impact:
- Temporary staffing and joint employer liability.
- Workers’ compensation insurance coverage.
- Wage and hour and employment practices liability.
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