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Quote of the Week: Law puts ‘significant liability’ on staffing buyers

October 07, 2014

“We are very disappointed in the governor’s decision to approve AB 1897,” Tom Nassif, president and CEO of Western Growers, said in a statement regarding California law AB 1897 that was signed by Gov. Jerry Brown on Sept. 28.

“This labor union-sponsored bill will unfairly impose significant liability onto an innocent third-party employer for violations of wage and other obligations of a labor contractor even though the third-party employer does not control the contractor,” Nassif said. “All employers should be ensuring a safe work environment, the payment of wages, and workers’ compensation for their employees, and California has in recent years strengthened these laws and increased enforcement to focus on bad actors. Creating liability for innocent third-party employers is unnecessary and harmful to our state’s job climate.”

Western Growers is an organization that represents local and regional family farmers in Arizona and California.

For more information on AB 1897, click here.

The law was supported by labor interests in the state. However, “instead of letting the commentary shape the public’s perception of the new legislation, though, the public would be better served to consider the text contained in the actual bill,” writes Matthew Stanford in the California Civil Rights Law Group blog.

The bill takes effect Jan. 1., accordng to an analysis by Robin Largent of Carothers DiSante & Freudenberger LLP.