BILL ANALYSIS �
AB 1744
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 1744 (Bonnie Lowenthal)
As Amended August 31, 2012
Majority vote
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|ASSEMBLY: |49-26|(May 30, 2012) |SENATE: |21-13|(August 31, |
| | | | | |2012) |
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Original Committee Reference: L. & E.
SUMMARY : Requires temporary services employers to disclose
specified information on the itemized payroll statement provided
to employees and on an existing notice provided at the time of
hire.
The Senate amendments :
1)Delete prior language and instead provide that if the employer
is a temporary services employer, the itemized statement must
include the rate of pay and the total hours worked for each
temporary services assignment.
2)Provide that this requirement becomes effective on July 1,
2013.
3)Provide that an existing notice provided to employees at the
time of hire, where the employer is a temporary services
employer, must also include the name, physical address of the
main office, mailing address, and telephone number of the
entity for whom the employee will perform work, and any other
information the Labor Commissioner deems material and
necessary.
4)Avoid a chaptering out conflict with two other pending bills
that amend the same provision of law.
5)Provide for a specified exception related to security services
companies.
EXISTING LAW :
AB 1744
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1)Provides that every employer must furnish each employee with
an itemized statement at the time of each payment of wages
that shows, among other things, the name and address of the
legal entity that is the employer. A knowing and intentional
violation of this provision is a misdemeanor.
2)Exempts the state or a city, county, city and county,
district, or other governmental entity from the above
provisions.
3)Requires all garment contractors provide the name of the
garment manufacturer on an employee's payroll statement.
4)Provides that the listing by an employer of the name and
address of the legal entity that secured the services of the
employer on the itemized payroll statement shall not create
any liability on the part of that legal entity.
AS PASSED BY THE ASSEMBLY , this bill required temporary service
employers to disclose on the itemized payroll statement
furnished to employees the name and address of the legal
entities that secured the services of the employer and total
hours worked for each legal entity.
FISCAL EFFECT : According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : According to the author, the percentage of
Californians whose jobs are temporary has nearly quadrupled in
the past 30 years. The author states that "temporary services
employers" are not required to specify information on the
employee's paystub. According to the author, listing this
information will bring clarity to temporary employees and
modernize the Labor Code to reflect this growing form of
alternative employment.
Research suggests that the temporary service industry is
expanding and moving from a stopgap-staffing provider to a more
systematic and continuous role as an intermediary between
companies and labor supplies across a broad array of industries
and occupations (Peck and Theodore, 2005). According to the
United States (U.S.) Bureau of Labor Statistics, temporary
employment in the U.S. increased from 1.1 million to 2.3 million
in 2008, totaling 1.7% of total U.S. employment.
AB 1744
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The California Labor Federation (CLF), writing in support of
this bill, states that it will ensure that temporary employees
are properly paid. CLF writes that temporary workers are
particularly vulnerable to abuse and often have no guarantee of
work and do not know ahead of time where they will be dispatched
or what they will be asked to do. They note that some temporary
workers rotate between assignments with different rates of pay
for different tasks or sites. CLF writes that this modest bill
provides essential protection to temporary workers.
This bill also amends provisions of law enacted last year as AB
469 (Swanson), Chapter 655, Statutes of 2011, which required a
written notice with specified information to be provided to
employees at the time of hire. Specifically, this bill provides
that where the employer is a temporary services employer, the
notice must also include the name, physical address of the main
office, mailing address, and telephone number of the entity for
whom the employee will perform work, and any other information
the Labor Commissioner deems material and necessary. For
temporary services employers, the Labor Commissioner's existing
template requires specific information on the legal entity for
whom the employee is providing work. This requirement is
included under existing law but was not explicitly stated in
Labor Code Section 2810.5, resulting in some confusion.
Therefore, this amendment further clarifies the notice
requirement as it relates to providing basic information for
employments by a temporary services employer.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN:
0005894