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California Gov. Arnold Schwarzenegger vetoed a bill Sunday requiring temporary agencies to pay workers weekly. AB 1710 would have also clarified that firms wouldn't need to pay temps the day an assignment ends.
In addition, the bill would have held both temporary firms and clients jointly responsible for damages in situations where neither had workers' comp coverage, according to a California Assembly analysis of the bill. Schwarzenegger honed in on the workers' comp portion in his veto message.
"Although I support the intent of this bill to clarify the manner in which temporary service employers must pay wages, I cannot support the provision of this bill which expands liability regarding workers' compensation coverage," according to Schwarzenegger's veto message.
The bill arose after a California Supreme Court decision in the case of Smith v. L'Oreal ruled companies could be required to pay temporary workers immediately after the end of an assignment.