BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 556|
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THIRD READING
Bill No: SB 556
Author: Corbett (D)
Amended: 5/29/13
Vote: 21
SENATE JUDICIARY COMMITTEE : 5-1, 5/7/13
AYES: Evans, Corbett, Jackson, Leno, Monning
NOES: Anderson
NO VOTE RECORDED: Walters
SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 4-0, 5/8/13
AYES: Lieu, Leno, Padilla, Yee
NO VOTE RECORDED: Wyland
SUBJECT : Agency: ostensible
SOURCE : California Labor Federation
California Professional Firefighters
Consumer Federation of California
DIGEST : This bill provides that a public agency that
contracts for labor or services with a contractor is jointly and
severally liable for any damages caused during or in connection
with the performance of work performed under the contract if
certain circumstances exist that cause a member of the public to
believe that the contractor or his/her employee was an agent of
the public agency.
Senate Floor Amendments of 5/29/13 , specify that the provisions
of this bill apply only to public agencies that contract for
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labor or services with a contractor and specify that both are
jointly and severally liable for any damages caused. Amendments
also specify that "public agency" does not include the state.
ANALYSIS : Existing law:
1.Provides numerous comprehensive requirements, rights, and
remedies relating to the employer-employee relationship,
including, but not limited to, wages and other compensation,
hours, workers' compensation, labor code violation actions,
employment contracts, and standards for working conditions.
2.Defines "employee" to mean every person in the service of an
employer under any appointment or contract of hire or
apprenticeship, express or implied, oral or written, whether
lawfully or unlawfully employed, as specified. (Labor Code
Sec. 3351) But excludes specified individuals such as someone
who is employed by his/her parent, spouse or child. (Labor
Code Sec. 3352)
3.Defines "independent contractor" to mean any person who
renders service for a specified recompense for a specified
result, under the control of his/her principal as to the
result of his/her work only and not as to the means by which
such result is accomplished. (Labor Code Sec.3353) The
contract of employment is a contract by which one, who is
called the employer, engages another, who is called the
employee, to do something for the benefit of the employer or a
third person. (Labor Code Sec. 2750)
4.Specifies that it is unlawful for any person doing business in
California and advertising to consumers to make any false or
misleading advertising claims. Includes claims that purport
to be based on factual, objective, or clinical evidence;
compare the product's effectiveness or safety to that of other
brands; or, purport to be based on any fact. (BPC Sec. 17508)
5.Authorizes an employer to prescribe the weight, color,
quality, texture, style, form and make of uniforms required to
be worn by his/her employees. (Labor Code Sec. 452)
This bill:
1.Provides that a public agency that contracts for labor or
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services with a contractor is jointly and severally liable for
any damages caused during or in connection with the
performance of work performed under the contract if certain
circumstances exist that cause a member of the public to
believe that the contractor or his/her employee was an agent
of the public agency.
Specifically, the public agency that enters into a contract
for labor services is held jointly and severally liable if
either of the following occurred:
A. The contractor or contractor's employee wore a uniform
that is substantially similar to the uniform of the public
agency so as to cause a member of the public to believe
that the contractor or contractor's employee was an agent
of the public agency.
B. The contractor or contractor's employee operated a
vehicle with the logo of the public agency and the vehicle
had an appearance that would cause a member of the public
to believe that the contractor or contractor's employee was
an agent of the public agency.
1.Applies only to contracts entered into on or after January 1,
2014.
2.Specifies that for the purposes of this bill, "public agency"
does not include the state.
Background
Under existing law, a contract of employment is a contract by
which one, who is called the employer, engages another, who is
called the employee, to do something for the benefit of the
employer or a third person. Existing law and regulations set
forth the conditions under which a person may be classified as
an independent contractor, and thus not subject to many wage,
overtime, working conditions, and various other labor standards.
The Employment Development Department (EDD), the Franchise Tax
Board, and the federal government are the primary entities that
have established criteria for making a determination as to
whether a person may be classified as an independent contractor.
EDD has developed a guide, worksheets, and forms to assist
businesses in determining whether a worker is an employee or
independent contractor.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 5/29/13)
California Labor Federation (co-source)
California Professional Firefighters (co-source)
Consumer Federation of California (co-source)
California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
California Teamsters Public Affairs Council
Engineers and Scientists of California
International Longshore & Warehouse Union
Professional & Technical Engineers, Local 21
UNITE HERE!
United Food and Commercial Workers Union, Western States Council
Utility Workers Union of America, Local 132
OPPOSITION : (Reflects prior version of the bill)
Associated General Contractors
Building Owners and Managers Association of California
California Ambulance Association
California Business Properties Association
California Chamber of Commerce
California Chapter of American Fence Association
California Employment Law Council
California Fence Contractor's Association
California Hospital Association
California Manufacturers and Technology Association
California Restaurant Association
California Trucking Association
Civil Justice Association of California
CSAC Excess Insurance Authority
Engineering Contractor's Association
Flasher Barricade Association
International Council of Shopping Centers
International Franchise Association
International Warehouse Logistics Association
Marin Builders Association
Messenger Courier Association of America
NAIOP of California, the Commercial Real Estate Development
Association
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National Federation of Independent Business
Personal Insurance Federation of California
Rural County Representatives of California
Satellite Broadcasting & Communications Association
Western Electrical Contractors Association
AL:ej 5/29/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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