Labor contracting: customer liability.
Summary
Existing law requires a client employer to share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for the payment of wages and the failure to obtain valid workers' compensation coverage. Existing law also prohibits a client employer from shifting to the labor contractor legal duties or liabilities under workplace safety provisions with respect to workers provided by the labor contractor. Existing law defines terms for these purposes and authorizes the Labor Commissioner to adopt regulations and rules of practice and procedure necessary to administer and enforce these provisions. Existing law excludes certain types of employers from these provisions, including, but not limited to, a client employer that is not a motor carrier of property based solely on the employer's use of a third-party motor carrier of property with interstate or intrastate operating authority to ship or receive freight, and a client employer that is a motor carrier of property subcontracting with, or otherwise engaging, another motor carrier of property to provide transportation services using its own employees and commercial motor vehicles. This bill would require a customer that, as part of its business, engages or uses to perform port drayage services a port drayage motor carrier, as defined, that is on a list established by the Division of Labor Standards Enforcement and posted on its Internet Web site pursuant to the bill to share with the motor carrier all civil legal responsibility and civil liability for port drayage services obtained after the date the motor carrier appeared on the list, as specified. The bill would require the division to notify a port drayage motor carrier at least 15 business days before adding the port drayage motor carrier to its Internet Web site and would require a port drayage motor carrier who provides port drayage services to a customer, prior to providing those services, and within 30 business days of entry of the judgment, to furnish prescribed notice to the customer concerning unsatisfied judgments against the motor carrier for unpaid wages, damages, unreimbursed expenses, and penalties. The bill would define terms for its purposes, including defining "customer," with certain exceptions, to mean a business entity, regardless of its form, that engages or uses a port drayage motor carrier to perform port drayage services on the customer's behalf, as described. The bill would prohibit a customer and a port drayage motor carrier from taking any adverse action against a commercial driver for providing notification of violations or filing a claim or civil action. The bill would, with certain exceptions, not apply the joint and severable liability to customers who engage a drayage motor carrier whose employees are covered by a collective bargaining agreement or to a customer who wishes to terminate an existing contract until the termination date or until 90 business days following the listing of the drayage motor carrier on the division's Internet Web site, whichever is shorter. The bill would require a customer or port drayage motor carrier to provide to the Labor Commissioner, and make available for copying, information within its possession, custody, or control required to verify compliance with applicable state laws. The bill would authorize the Labor Commissioner and the Employment Development Department to adopt necessary regulations and rules to administer and enforce the bill's provisions. The bill would provide that waiver of its provisions is contrary to public policy, void, and unenforceable. The bill would provide that its provisions are severable.
Bill status
signed
all 5 stages cleared
Introduction
Feb 2018
Committee Review
Aug 2018
Senate Passage
May 2018
Assembly Passage
Aug 2018
Signed into Law
Sep 2018
Introduced Feb 16, 2018
Signed Sep 22, 2018
Floor votes · Senate May 30, 2018 · Assembly Aug 30, 2018
How they voted
20–9
Passed · 2 other
Total votes 31
May 30, 2018
D
Democratic21
95% Yea
R
Republican10
90% Nay
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
39
Key actions
11
Committee
13
Amendments
1
Sep 22, 2018
Signed into law
Approved by the Governor.
legislature
Aug 31, 2018
Upper · Passed
Assembly amendments concurred in. (Ayes 26. Noes 12. Page 6134.) Ordered to engrossing and enrolling.
upper
Aug 30, 2018
Assembly · Passed
Assembly Vote: pass (45-24-1)
assembly
Aug 30, 2018
Introduced
In Senate. Concurrence in Assembly amendments pending.
upper
Aug 16, 2018
Lower · Passed
From committee: Do pass as amended. (Ayes 12. Noes 5.) (August 16).
lower
Jun 26, 2018
Lower · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 2.) (June 26). Re-referred to Com. on APPR.
lower
Jun 21, 2018
Lower · Passed
From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (June 20). Re-referred to Com. on JUD.
lower
Jun 14, 2018
Committee
Referred to Coms. on L. & E. and JUD.
lower
May 30, 2018
Senate · Passed
Senate Vote: pass (20-9-2)
senate
May 25, 2018
Upper · Passed
From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4310.) (May 25).
upper
Apr 25, 2018
Upper · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1. Page 4817.) (April 25). Re-referred to Com. on APPR.
upper
Apr 25, 2018
Upper · Passed
From committee: Do pass and re-refer to Com. on L. & I.R. (Ayes 5. Noes 2. Page 4816.) (April 24). Re-referred to Com. on L. & I.R.
upper
Apr 25, 2018
Upper · Passed
From committee: Do pass and re-refer to Com. on L. & I.R. (Ayes 4. Noes 2. Page 4816.) (April 24). Re-referred to Com. on L. & I.R.
upper
Apr 19, 2018
Committee
Re-referred to Coms. on JUD. and L. & I.R.
upper
Apr 10, 2018
Committee
Re-referred to Com. on RLS.
upper
Apr 4, 2018
Committee
Re-referred to Com. on L. & I.R.
upper
Mar 8, 2018
Committee
Referred to Com. on RLS.
upper
Feb 16, 2018
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.
upper
1 primary · 2 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Ricardo Lara
DDemocratic
Co
Steve Bradford
DDemocratic
Co
Tony Thurmond
DDemocratic
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