- Written by Kevin Cleveland
The Court Has Extended The July 1, 2016 Cut-off For Signing Up To Make AB 1513 Payouts
On June 30, 2016, in Nisei Farmers League v. CA Labor and Workforce Development Agency et. al, the Court granted a temporary restraining order temporarily preventing the enforcement of the July 1, 2016 AB 1513 (CA Labor Code section 226.2) sign-up deadline. As a result, the time to sign up to make payments under AB 1513 and receive the safe harbor it provides has been extended until at least July 28, 2016. A hearing has been set for July 18, 2016 to determine if the entire enforcement of AB 1513 will be halted while the Nisei Farmers League prosecutes their case against the State to have AB 1513 declared unconstitutional. The lawsuit, in effect, claims that the law is too vague to be enforceable, provides inadequate description of what is required to comply with the law, is unlawful because the piece rate systems under which employers were paying employees were not contrary to the then existing law, that the law improperly interferes with contracts, functions as retroactive punishment, and constitutes an unlawful taking of property.
- Written by Jacquelyn E. Larson
On June 21, 2016, the U.S. Chamber of Commerce and the International Franchise Association released a report, titled “Main Street In Jeopardy” (the “Report”) asking Congress to overturn the National Labor Relations Board’s (“NLRB” or “Board”) new joint employers test.
As most employers know, the NLRB employed a new sweeping test for finding employers jointly liable in 2015, in a series of cases including Browning-Ferris. The NLRB will now find joint employers where both employers have some indicia of control over terms and conditions of employment, no matter how slight. The Report warns that businesses may now find themselves liable for workplaces they don’t control and workers they don’t employ. In the agricultural sector, this development is particularly concerning to growers and their farm labor contractors, where business relationships are often very close.