***ACTION NEEDED*** LIEN AND LIABILITY BILLS UPDATE

Two labor-backed bills that could place pull your business into labor disputes that you have nothing to do with, will be heard in the Senate in the next two weeks.  We vociferously oppose both bills.

 AB 2416 (Stone; D-Scotts Valley) Unproven Wage Liens, passed the Assembly Labor Committee this week.  This bill creates a dangerous and unfair precedent in the wage and hour arena by allowing employees to file liens on an employer’s real or personal property, or property where work was performed, based upon alleged yet unproven wage claims.

 At the CCRES our members reported that there was a lot of confusion within the Legislature about what the bill actually does, how it is different from a Mechanic’s Lien, and what the transactional impact is.  Here are some materials that will help answer some of those questions:

 ***ACTION NEEDED*** The bill will be heard on Tuesday in the Senate Judiciary Committee.  Here is a list of the members.  Please call any member with which you have a relationship with and/or have property in that district, and let them know how this bill will negatively impact your ability to provide jobs once you are targeted by advocates using this law as a leverage point in negotiations.

 AB 1897 (Hernandez; D-West Covina) Labor Contracting; Client Liability.  This bill would force one company to essentially insure the wage and hour obligations, workers’ compensation coverage, and occupational health and safety duties of a separate employer’s employees, which will discourage the use of contractors and their employees.

 The CalChamber has identified both bills as “Job Killers,” and a large coalition of business groups are marshalling our forces in Sacramento to educate legislators about negative impacts of this measure.  This bill will be heard on June 24 in the Senate Judiciary Committee.

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