916.447.4113 info@thecpsa.org

This will impact ongoing business operations and our productive economy. Many of the labor bills
moving through the State Legislature may certainly disrupt the pool and spa industry. Although some
of those harmful bills have died or have been made into 2-year bills, there are other labor-related
bills you should be aware of.

AB 170 (Gonzalez) pertains to sexual harassment liability in employment and would require a client
employer to share with a labor contractor all civil legal responsibility and civil liability for harassment
for all workers supplied by that labor contractor. There are many concerns with this bill but a major
sticking point is that if one of your employees is harassed by someone at a company you contract
with, you and your company then become liable for their actions. This bill passed the Senate Labor,
Public Employment and Retirement Committee on June 12 with a 4-1 vote, and will be heard next by
the Senate Judiciary Committee on July 2.

AB 196 (Gonzalez) addresses paid family leave, revising the formula for determining benefits
available pursuant to the Family Temporary Disability Insurance Program by redefining the weekly
benefit amount to be equal to 100% of the wages paid to an individual for employment by employers
during the quarter of the individual’s disability base period in which these wages were highest. The
bill is pending hearing in the Senate Labor, Public Employment and Retirement Committee.

AB 403 (Kalra) would amend the complaint process of the Division of Labor Standards Enforcement
by extending the period to file a complaint to within two years after the occurrence of the violation,
except that violations of certain provisions to be filed within one year. There’s concern that this bill
undermines the current DLSE process and provides for one-sided fees and costs for a prevailing
plaintiff. This bill has been referred to the Senate Judiciary Committee.

AB 673 (Carrillo) concerns penalties around the failure to pay wages, providing that penalties for late
payment of wages shall be recovered by the Labor Commissioner as civil penalties, payable to the
affected employee, who may also enforce civil penalties for late payment of wages through the
Private Attorneys General Act but cannot also recover statutory penalties for the same violation.
Opposition was removed with the most recent amendments to restrict multiple recovery of penalties
for the same violation.

AB 1066 (Gonzalez) pertains to unemployment insurance as it allows workers involved in a trade
dispute to collect unemployment benefits after a four-week waiting period. The bill would impact any
companies that rely on union workers for any labor to construct pools or spas. This bill is pending
hearing in the Senate Labor, Public Employment and Retirement Committee.

AB 1296 (Gonzalez) is a bill supported by California Pool & Spa Association regarding recovering taxes
in the underground economy and establishes the Tax Recovery in the Underground Economy Criminal
Enforcement Program (TRUE) in the Department of Justice to combat underground economic
activities through a multi-agency collaboration. The bill is set for hearing in the Senate Judiciary
Committee on July 2.

SB 530 (Galgiani) addresses discrimination and harassment in the construction industry by instructing
the Division of Labor Standards Enforcement to develop an industry-specific harassment and
discrimination prevention policy for the industry. This bill has garnered unanimous support to date
and is set for its next hearing on June 26 in the Assembly Labor and Employment Committee.