New California Law for 2015- You May Be Liable for Someone Else’s Employees

3 Nov

Many organizations regularly use staffing firms, temporary help agencies and even PEOs (Professional Employer Organizations) for the people who carry out activities important to their operations. Now, in most instances, even if such workers are on the payroll and even if they are supervised by some other employer, your company may legally be liable for wage and hour law violations and failure to provide workers’ compensation for such workers. (AB 1897) This new law imposes liability regardless of the amount of direction or control you exert over these these workers.
There are some protections for employers and some limits to the application of this new law:
• Businesses with fewer than 25 employees are exempt
• The law only applies if you use 5 or more temporary or supplied workers at one time
• Salaried administrative, executive or professional personnel are not covered by the law
• You can include in contracts with the agencies or firms supplying you such workers that they will indemnify you and hold you harmless for any wage violations or workers’ compensation violations, and defend you from any law suits or claims for such violation (except for OSHA violations.)
Since this law takes effect January 1, 2015, you should carefully review any contracts with staffing firms, temporary agencies, PEO firms or labor contractors
.  If you have questions, contact us at Don Dressler Consulting. Our email is:

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