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AB-3240 Labor disputes: strikes: health care coverage.(2019-2020)

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Date Published: 05/05/2020 09:00 PM

Amended  IN  Assembly  May 05, 2020
Amended  IN  Assembly  May 04, 2020


Assembly Bill
No. 3240

Introduced by Assembly Member Gray

February 21, 2020

An act to add Section 2803.7 to the Labor Code, and to add Section 17131.12 to the Revenue and Taxation Code, relating to employment.


AB 3240, as amended, Gray. Labor disputes: strike pay. strikes: health care coverage.
Existing law prohibits an employer from discontinuing or changing coverage for medical or other health benefits for its employees without providing specified notice of the termination or change at least 15 days in advance.
This bill would prohibit an employer of 100 or more employees from terminating, reducing, or modifying the employer’s contribution to an employee’s health care coverage while the employee is engaged in a lawful strike.

Existing law, the Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.

This bill would exclude strike pay, as defined, from gross income for taxation purposes.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


 Section 2803.7 is added to the Labor Code, to read:

 An employer with 100 or more employees who offers health care coverage for nonoccupational injuries or illness to their employees shall not terminate, reduce, or modify the employer’s contribution to the employee’s health care coverage for the duration of the employee’s participation in a lawful strike.

SEC. 2.Section 17131.12 is added to the Revenue and Taxation Code, to read:

Gross income does not include strike pay, as that term is defined in Section 1259 of the Unemployment Insurance Code.