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Home < Issues < 2007 State Legislation

AB 377 (Arambula)

Labor Contractors

Fresno Chamber Position: OPPOSE

Existing Law:

Existing law requires an employer to furnish each employee with an accurate itemized statement showing the name and address of the employer in order to prove the legal status. It is considered a misdemeanor if this is intentionally violated.

Proposed Legislation:

This bill would require an employer who is a farm labor contractor to disclose in the itemized statement the name and address of the legal entity that secured the employer's services. Because a willful violation of the bill's provisions would be a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Argument:

This bill would create unnecessary paperwork and bookkeeping burdens on farm labor contractors.

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The Honorable Arnold Schwarzenegger Governor, State of California State Capitol Sacramento, CA 95814 Dear Governor Schwarzenegger: I request your VETO of AB 377 (Arambula), which creates the potential of new joint liability for farmers who contract for labor services. AB 377 inappropriately attempts to impose new joint liability on agricultural operations. AB 377 requires farm labor contractors to print the name and address of the person who contracts for services on the farm labor contractor’s employee pay stubs. We are concerned that this requirement is an attempt to impose new joint liability on farmers for the actions of farm labor contractors. AB 377 imposes unreasonable liability for another’s actions. We are concerned that AB 377’s provisions unreasonably make an entity legally liable for any violation of state labor laws made by another employer by listing the contracting business on the other company’s pay stub. We believe this concern is valid because the Assembly Labor Committee’s August 14, 2006 analysis shows that proponents believe that AB 377 ensures “that farm workers and state agencies are able to hold all responsible parties accountable… ” if the contractor fails to meet state labor law requirements. You vetoed a similar bill last year, AB 2327, also by Arambula. In your veto message you pointed out that this bill would only place unnecessary and burdensome requirements on law-abiding contractors and impose additional liabilities on growers through no fault of their own. We know of no new information that would change the impact of the provisions of this bill. We support strong penalties for those that choose not to abide by the way. However, this bill fails to distinguish between the good and the bad actors, and creates new liability for all. For these and other reasons, I request your VETO of AB 377 (Arambula).

Contact Amy Huerta, the Chamber's Government Affairs Manager for more information at (559) 495-4818 or ahuerta@fresnochamber.com