Bill Text: CA AB1563 | 2009-2010 | Regular Session | Enrolled

California Assembly Bill 1563 (Prior Session Legislation)

Bill Title: Employment: contracts or agreements for labor or

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Vetoed) 2010-01-14 - Consideration of Governor's veto stricken from file. [AB1563 Detail]

Download: California-2009-AB1563-Enrolled.html

BILL NUMBER: AB 1563	ENROLLED
	BILL TEXT

	PASSED THE SENATE  SEPTEMBER 1, 2009
	PASSED THE ASSEMBLY  SEPTEMBER 8, 2009
	AMENDED IN SENATE  JULY 23, 2009
	AMENDED IN SENATE  JUNE 18, 2009
	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Committee on Labor and Employment (Monning (Chair),
Eng, Furutani, Ma, and Portantino)

                        MARCH 11, 2009

   An act to add Section 2825 to the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1563, Committee on Labor and Employment. Employment: contracts
or agreements for labor or services.
   Existing law prohibits a person or entity from entering into a
contract or agreement for labor or services with a construction, farm
labor, garment, janitorial, or security guard contractor where the
person or entity knows or should know that the contract or agreement
does not include funds sufficient to allow the contractor to comply
with all applicable local, state, and federal laws or regulations
governing the labor or services to be provided. The Division of Labor
Standards Enforcement, within the Department of Industrial
Relations, is charged with the responsibility of enforcing minimum
labor standards under state law. The division's Bureau of Field
Enforcement is responsible for investigating and enforcing statutes
relating to the above targeted areas. The Economic and Employment
Enforcement Coalition, composed of the division and other state and
federal agencies, combines and coordinates investigative and
enforcement efforts of the various agencies targeting the underground
economy.
   This bill would provide that in an investigation by the Economic
and Employment Enforcement Coalition or the Bureau of Field
Enforcement involving a labor contractor employing 15 or more workers
in any of these 5 targeted areas, if the Division of Labor Standards
Enforcement has a reasonable suspicion that a violation of potential
financial significance, as defined, has been committed or cited by
the division, the division must obtain the relevant terms of the
contract from the contractor and make a written record thereof, as
well as a record of whether there is a likelihood that the applicable
contract violates those provisions requiring adequate funding. The
bill also would require the division to make a record of its reasons
supporting its decision to either file or not file a legal action.



THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2825 is added to the Labor Code, to read:
   2825.  (a) In any investigation by the Economic and Employment
Enforcement Coalition or the Bureau of Field Enforcement involving a
labor contractor employing 15 or more workers in the fields of
construction, farm labor, garment, janitorial, or security guard
service, if the Division of Labor Standards Enforcement has a
reasonable suspicion that violations of potential financial
significance have been committed or if such violations have been
cited by the division and have not been set aside by the division
within 15 days of their issuance, the division shall do the
following:
   (1) Issue an administrative subpoena for the relevant portions for
any written contract covering the work performed by the contractor.
   (2) If there is no written contract, obtain from the contractor
the relevant terms of any oral contract and make a written record of
the information provided by the contractor.
   (3) Record whether the terms of an applicable contract appear to
violate the provisions of Section 2810 and, if so, whether the
division filed a legal action pursuant to that section. If no legal
action was filed, this record shall explain the reasons why the
division chose not to do so.
   (b) For purposes of this section, a violation of "financial
significance" includes, but is not limited to, the following
violations, which are within the jurisdiction of the Division of
Labor Standards Enforcement:
   (1) Failure to have a worker's compensation insurance policy
covering all employees.
   (2) Multiple minimum wage violations over a period of one or more
months.
   (3) Multiple serious overtime violations over a period of one or
more months.
   (c) The Division of Labor Standards Enforcement shall make a
record, including a brief analysis and explanation of reasons, in
each instance that provisions of Section 2810 were likely violated
but the division determined that implementation of this section was
not feasible or practicable.