GOVERNMENT RELATIONS


In addition to the unfinished bills left from the 2019 session, the Legislature has until February 21 to introduce new bills for consideration in 2020. Unfin- ished business, or two-year bills, have until January 31 to move out of their house of origin. Among the new laws effective


What to Expect in the Next Legislative Session? T


By Felipe Fuentes


he Legislature reconvenes January 6, 2020 to begin the second half of the 2019-20 legislative session.


known as the Dynamex case, this new pro-employment standard brings potential new costs, administrative duties, and legal risks for hiring parties on multiple fronts, including,


but not limited to:  Payroll taxes  Meals, breaks and overtime policies and enforcement and premium pay


 Benefits  Leave and PTO policies,


requirements and enforcement


January 1, 2020, Assembly Bill 5 (AB 5) is a statute that will have the most impact on contractors and the construction industry. Tis new law codifies a 2018 California Supreme Court decision that presumes a worker who performs services for an employer is an employee unless they meet the “ABC” test established in the Dynamex case to be considered an independent contractor. Previously


 Wage order violations  Labor Code violations and Private


Attorney General Actions (PAGA) claims


 Unemployment insurance  Workers’ compensation coverage,


claims, and premiums AGC and others in the construc-


tion industry were able to negotiate partial exemptions in AB 5 for specific provisions for subcontracting and trucking for construction. While


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not perfect, these exemp- tions provide a roadmap for compliance. AGC’s Legal Advisory Committee has suggested guidance on AB 5 compliance, and it is available online and in trainings throughout the districts. More information may be found here: http://agc-ca.org/Member- Services/Legislative-Advocacy/ AB-5-and-the-Dynamex-Decision/. As for unfinished business, the


Legislature deferred action on a number of measures that will likely adversely impact our industry. Below is a list of bills that AGC opposed


Continued on page 6


www.AGC-CA.org


Associated General Contractors of California 5


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