California Legislature—2013–14 Regular Session

Assembly BillNo. 1897


Introduced by Assembly Member Roger Hernández

February 19, 2014


An act to amend Section 2810 of the Labor Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 1897, as introduced, Roger Hernández. Employment.

Existing law prohibits a person or entity from entering into a contract or agreement for labor or services with specified types of contractors, including warehouse contractors among others, if 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.

This bill would make nonsubstantive changes to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

Section 2810 of the Labor Code is amended to
2read:

3

2810.  

(a) A person or entity shall not enter into a contract or
4agreement for labor or services with a construction, farm labor,
5garment, janitorial, security guard, or warehouse contractor,begin delete whereend delete
6begin insert ifend insert the person or entity knows or should know that the contract or
7agreement does not include funds sufficient to allow the contractor
P2    1to comply with all applicable local, state, and federal laws or
2regulations governing the labor or services to be provided.

3(b) There is a rebuttable presumption affecting the burden of
4proof that there has been no violation of subdivision (a)begin delete whereend deletebegin insert ifend insert
5 the contract or agreement with a construction, farm labor, garment,
6janitorial, security guard, or warehouse contractor meets all of the
7requirements in subdivision (d).

8(c) Subdivision (a) does not apply to a person or entity who
9executes a collective bargaining agreement covering the workers
10employed under the contract or agreement, or to a person who
11enters into a contract or agreement for labor or services to be
12performed on his or her home residences, provided that a family
13member resides in the residence or residences for which the labor
14or services are to be performed for at least a part of the year.

15(d) To meet the requirements of subdivision (b), a contract or
16agreement with a construction, farm labor, garment, janitorial,
17security guard, or warehouse contractor for labor or services shall
18be in writing, in a single document, and contain all of the following
19provisions, in addition to any other provisions that may be required
20by regulations adopted by the Labor Commissioner from time to
21time:

22(1) The name, address, and telephone number of the person or
23entity and the construction, farm labor, garment, janitorial, security
24guard, or warehouse contractor through whom the labor or services
25are to be provided.

26(2) A description of the labor or services to be provided and a
27statement of when those services are to be commenced and
28completed.

29(3) The employer identification number for state tax purposes
30of the construction, farm labor, garment, janitorial, security guard,
31or warehouse contractor.

32(4) The workers’ compensation insurance policy number and
33the name, address, and telephone number of the insurance carrier
34of the construction, farm labor, garment, janitorial, security guard,
35or warehouse contractor.

36(5) The vehicle identification number of any vehicle that is
37owned by the construction, farm labor, garment, janitorial, security
38guard, or warehouse contractor and used for transportation in
39connection with any service provided pursuant to the contract or
40agreement, the number of the vehicle liability insurance policy
P3    1that covers the vehicle, and the name, address, and telephone
2number of the insurance carrier.

3(6) The address of any real property to be used to house workers
4in connection with the contract or agreement.

5(7) The total number of workers to be employed under the
6contract or agreement, the total amount of all wages to be paid,
7and the date or dates when those wages are to be paid.

8(8) The amount of the commission or other payment made to
9the construction, farm labor, garment, janitorial, security guard,
10or warehouse contractor for services under the contract or
11agreement.

12(9) The total number of persons who will be utilized under the
13contract or agreement as independent contractors, along with a list
14of the current local, state, and federal contractor license
15identification numbers that the independent contractors are required
16to have under local, state, or federal laws or regulations.

17(10) The signatures of all parties, and the date the contract or
18agreement was signed.

19(e) (1) To qualify for the rebuttable presumption set forth in
20subdivision (b), a material change to the terms and conditions of
21a contract or agreement between a person or entity and a
22construction, farm labor, garment, janitorial, security guard, or
23warehouse contractor must be in writing, in a single document,
24and contain all of the provisions listed in subdivision (d) that are
25affected by the change.

26(2) If a provision required to be contained in a contract or
27agreement pursuant to paragraph (7) or (9) of subdivision (d) is
28unknown at the time the contract or agreement is executed, the
29best estimate available at that time is sufficient to satisfy the
30requirements of subdivision (d). If an estimate is used in place of
31actual figures in accordance with this paragraph, the parties to the
32contract or agreement have a continuing duty to ascertain the
33information required pursuant to paragraph (7) or (9) of subdivision
34(d) and to reduce that information to writing in accordance with
35the requirements of paragraph (1) once that information becomes
36known.

37(f) A person or entity who enters into a contract or agreement
38referred to in subdivisions (d) or (e) shall keep a copy of the written
39contract or agreement for a period of not less than four years
40following the termination of the contract or agreement. Upon the
P4    1request of the Labor Commissioner, any person or entity who
2enters into the contract or agreement shall provide to the Labor
3Commissioner a copy of the provisions of the contract or
4agreement, and any other documentation, related to paragraphs
5(1) to (10), inclusive, of subdivision (d). Documents obtained
6pursuant to this section are exempt from disclosure under the
7California Public Records Act (Chapter 3.5 (commencing with
8Section 6250) of Division 7 of Title 1 of the Government Code).

9(g) (1) An employee aggrieved by a violation of subdivision
10(a) may file an action for damages to recover the greater of all of
11his or her actual damages or two hundred fifty dollars ($250) per
12employee per violation for an initial violation and one thousand
13dollars ($1,000) per employee for each subsequent violation, and,
14upon prevailing in an action brought pursuant to this section, may
15recover costs and reasonable attorney’s fees. An action under this
16section shall not be maintained unless it is pleaded and proved that
17an employee was injured as a result of a violation of a labor law
18or regulation in connection with the performance of the contract
19or agreement.

20(2) An employee aggrieved by a violation of subdivision (a)
21may also bring an action for injunctive relief and, upon prevailing,
22may recover costs and reasonable attorney’s fees.

23(h) The phrase “construction, farm labor, garment, janitorial,
24security guard, or warehouse contractor” includes any person, as
25defined in this code, whether or not licensed, who is acting in the
26capacity of a construction, farm labor, garment, janitorial, security
27guard, or warehouse contractor.

28(i) (1) The term “knows” includes the knowledge, arising from
29familiarity with the normal facts and circumstances of the business
30activity engaged in, that the contract or agreement does not include
31funds sufficient to allow the contractor to comply with applicable
32laws.

33(2) The phrase “should know” includes the knowledge of any
34additional facts or information that would make a reasonably
35prudent person undertake to inquire whether, taken together, the
36contract or agreement contains sufficient funds to allow the
37contractor to comply with applicable laws.

38(3) A failure by a person or entity to request or obtain any
39information from the contractor that is required bybegin delete anyend deletebegin insert anend insert
40 applicable statute or by the contract or agreement between them,
P5    1constitutes knowledge of that information for purposes of this
2section.

3(j) For the purposes of this section, “warehouse” means a facility
4the primary operation of which is the storage or distribution of
5general merchandise, refrigerated goods, or other products.



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