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AB-170 Employment: sexual harassment: liability.(2019-2020)

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Date Published: 06/13/2019 09:00 PM
AB170:v96#DOCUMENT

Amended  IN  Senate  June 13, 2019
Amended  IN  Assembly  April 01, 2019
Amended  IN  Assembly  March 21, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 170


Introduced by Assembly Member Gonzalez

January 08, 2019


An act to add Section 12940.2 to the Government Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 170, as amended, Gonzalez. Employment: sexual harassment: liability.
The California Fair Employment and Housing Act (FEHA) prohibits various actions as unlawful employment practices and makes it an unlawful employment practice for an employer, labor organization, employment agency, apprenticeship training program, or any training program leading to employment, to engage in harassment of an employee or other specified person. FEHA also makes harassment of those persons by an employee, other than an agent or supervisor, unlawful if the entity, or its agents or supervisors, knows or should have known of this conduct and fails to take immediate and appropriate corrective action. Under FEHA, an employer may also be responsible for the acts of nonemployees, with respect to sexual harassment of employees and other specified persons, if the employer, or its agents or supervisors, knows or should have known of the conduct and fails to take immediate and appropriate corrective action. FEHA defines harassment for these purposes to include sexual harassment, gender harassment, and harassment based on pregnancy, childbirth, or related medical conditions.
Existing law also requires a client employer, as defined, to share with a labor contractor, as defined, all civil legal responsibility and civil liability for all workers supplied by that labor contractor for the payment of wages and the failure to obtain valid workers’ compensation coverage.
This bill 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. The bill would define the terms “client employer” and employer, “labor contractor” contractor,” “motion picture payroll services,” and “employee leasing arrangement for purposes of these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 12940.2 is added to the Government Code, to read:

12940.2.
 (a) A client employer shall share with a labor contractor all civil legal responsibility and civil liability for harassment, as described in subdivision (j) of Section 12940, for all workers supplied by that labor contractor.
(b) The provisions of this section are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.
(c) For purposes of this section, the following terms have the following meanings:
(1) “Client employer” means a private business entity, regardless of its form, that obtains workers to perform labor within the usual course of business from a labor contractor. “Client employer” does not include the following: a business entity with fewer than 25 workers, including those hired directly and those obtained by a labor contractor, or a business entity with 5 or fewer workers supplied by a labor contractor.
(2) “Labor contractor” means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employer’s usual course of business. “Labor contractor” does not include community nonprofit organizations, labor organizations, apprenticeship programs, motion picture payroll services, as defined, or a third party who is a party to an employee leasing arrangement, as defined. arrangement.
(3) “Motion picture payroll services” means any employing unit that directly or through its affiliated entities meets all of the following criteria:
(A) Contractually provides the services of motion picture production workers to a motion picture production company or to an allied motion picture services company.
(B) Is a signatory to a collective bargaining agreement for one or more of its clients.
(C) Controls the payment of wages to the motion picture production workers and pays those wages from its own account or accounts.
(D) Is contractually obligated to pay wages to the motion picture production workers without regard to payment or reimbursement by the motion picture production company or allied motion picture services company.
(E) At least 80 percent of the wages paid by the motion picture payroll services company each calendar year are paid to workers associated between contracts with motion picture production companies and motion picture payroll services companies.
(4) “Employee leasing arrangement” has the same meaning as that term is defined by Rule 4 of Section V of the California Workers’ Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2019, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to assume all civil legal responsibility and civil liability under this section.