PERSONAL SERVICES CONTRACTS – OPPOSE

As part of an employer coalition, we OPPOSE AB 790, which would require that targeted companies provide notices to personal service workers of another entity regarding the personal service workers’ right to form or assist labor organizations as permitted under federal law.

Specifically, AB 790 requires that the Department of Industrial Relations identify employers with a market capitalization of at least $1,000,000,000 and owns, operates, maintains, or rents any building in California. Those employers who enter into a personal service contract with a separate entity would need to provide the employees of that separate entity with specified information regarding the employees’ right to form or assist labor organizations as provided for by federal law.

“Personal services” is broadly defined as janitorial, housekeeping, custodial, food service, laundry service, window cleaning, bus driving, security guard, or any other “similar services” as the Department of Industrial Relations (DIR) identifies.

From a practical standpoint, this bill is nearly impossible to ensure compliance because AB 790 would require that a client company provide notices to workers of another entity. How is the client company supposed to ensure that employees of another entity are receiving notices from the client company?

For example, what if a different window cleaner cleans the outside of the building because another window cleaner called in sick. Does the replacement window cleaner need to be provided the notice if they have never received one from the client company? How is the client company supposed to keep track of the fact that a new window cleaner cleaned their windows that day and did or did not receive the required notice that day or previously?

Compliance becomes even more concerning considering the broadly defined entities it would apply to. For example, the bill encompasses public companies whose evaluation is over $1,000,000,000; however, the client company does not need to be headquartered or own property in the state for AB 790 to apply, simply renting “any” property in California suffices. Thus, a client company would need to ensure that they provide these notices to personal service contract workers providing services at a rental property when the client company doesn’t even have business in California, but simply rents property in the state.

The bill is on the Floor next week and we oppose.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)