Calif. Law Is Cause For Caution Among 'Client Employers'

Law360, New York (November 24, 2014, 10:41 AM EST) -- The California Legislature recently passed AB 1897, effective Jan. 1, 2015, which adds Section 2810.3 to the state's Labor Code. This new law makes "client employers" jointly liable with "labor contractors" for the payment of wages and the failure to obtain valid workers' compensation coverage.

AB 1897 further underscores the Legislature's concern over the growing use of leased and temporary employees by California employers. In the last 20 years, the Legislature has addressed the perception that the growth of staffing agency arrangements has negatively impacted lower skilled employees. Prior legislation in this area created client employer liability in the garment manufacturing...

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