Most California businesses using labor contractors or staffing agencies will soon face new potential liability for the workers compensation – and wage and hour violations of their subcontractors. AB 1897 becomes effective on January 1, 2015.
Employment law attorneys Janet Grumer and Aaron Colby discussed proactive steps companies can take to address the expansion of the risk from using outside labor.
- Key parts of the new legislation, including the requirement that businesses “share with a labor contractor all…liability for all workers supplied by that labor contractor” for failure to pay wages, and for failure to secure workers’ compensation insurance coverage
- Applicability of the new legislation – and the exceptions and exclusions
- Practical considerations for evaluating and managing labor contractor relationships
- How Indemnity provisions in labor contractor agreements may help – or not