The deadline is approaching for Governor Jerry Brown to either veto or sign an important piece of legislation that is poised to have a damaging impact on how technology companies do business in California. Assembly Bill 1897 attempts to shift responsibilities in subcontractor relationships by unfairly holding the majority of California employers liable for wage and hour violations by other employers that are out of their control.
Ultimately, AB 1897 will hurt California’s innovators, including many who are leading the way in job creation, product deployment, sustainable economic development, and global competitiveness. The technology industry employs well over one million Californians and thrives in an economic environment that fosters innovation and productivity. AB 1897 threatens that landscape.
First, AB 1897 will not stop a labor violation from occurring; it just allows a bad actor employer to shift liability to an innocent employer that did not commit the violation, know of the violation, or have the ability to prevent the violation. It’s a basic principle that employers who commit labor abuses should be held accountable.