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California bill would clarify temp pay

July 11 2008

A bill in California clarifying when temporary agencies must pay their workers was presented on Thursday to Gov. Arnold Schwarzenegger for his signature, the American Staffing Association, which promoted the bill, reported.

The bill, SB 940, makes clear that temporary workers will be considered timely paid following the end of an assignment if a staffing firm pays its employees on a weekly basis. The bill responds to concerns that arose after the California Supreme Court decided in the case of Smith v. L'Oreal that companies would be required to pay temporary workers immediately after the end of an assignment.

The American Staffing Association said the bill also provides relief from weekly pay requirements for firms that assign workers on a longer-term basis.

Schwarzenegger vetoed a similar bill in October because of workers' comp changes proposed in it. SB 940 doesn't have the workers' comp language.

The American Staffing Association said it's encouraging companies doing business in California to contact the governor and urge him to sign the bill.

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