Jeffrey Polsky was quoted in the SF Chronicle article, "State Adds More Than 30 Employment Laws, Including Sick Leave." Full text can be found in the January 12, 2015, issue, but a synopsis is below.
According to an annual list put out by the California Chamber of Commerce, more than 30 state employment laws take effect this year.
AB1897 now holds companies that employ workers through a staffing agency or other labor contractor accountable for wage-and-hour violations. The chambers report states that "in brief, if a labor contractor fails to pay its workers properly or fails to provide workers' compensation coverage for those employees, the 'client employer' can now be held legally responsible and liable."
"I think this is big in terms of companies potentially being on the hook for things they had no idea about or not understanding the potential liability they face," said Jeffrey Polsky. He explained that the law could discourage companies from hiring smaller, less-well-known staffing agencies that might not have the resources or wherewithal to make sure the relevant employment laws are being followed.
Polsky would advise clients who use staffing agencies to include a provision in their contract requiring the agency to indemnify the employer for failure to comply with employment laws.
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