CalChamber Battles Increased Liability for California Employers

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"Job-killer" bills increasing employer exposure to discrimination litigation were the focus of of two new installments of CalChamber News, released as legislators returned to Sacramento following the summer break. The California Chamber of Commerce is urging members to ask senators and members of the Senate Appropriations Committee to oppose AB 1450 (Allen; D-Santa Rosa), AB 1999 (Brownley; D Santa Monica) and AB 2039 (Swanson; D-Alameda).

Danger in Workplace

The first CalChamber News segment focused on AB 1450, which essentially prohibits employers from legitimately inquiring into an applicant's most recent employment history, due to fear that such an inquiry will ultimately lead to penalties and costs on the basis that the applicant was discriminated against because of his or her status as unemployed.

"The Legislature of California is preventing an employer from determining whether or not a new employee is going to be dangerous or a hazard," says CalChamber President and CEO Allan Zaremberg of AB 1450.

In the video, Zaremberg says the bill puts "everyone at risk" because employers could not properly screen potential employees.

Cumulative Impact

The second CalChamber News segment discussed AB 1999 and AB 2039, which would add significant burdens to California employers. AB 1999 expands the Fair Employment and Housing Act to create a new protected classification for family caregivers. AB 2039 increases the number of employees who can take protected leave under the California Family Rights Act.

"When you look at the cumulative impact that all of these leaves have on employers, it is significant," said Jennifer Barrera, CalChamber policy advocate and employment law expert.

Zaremberg said: "These kinds of situations don't exist anywhere else in the country. When you have increased exposure to liability you think twice before you invest in California."

Action Needed

Although all three bills were placed on the Senate Appropriations suspense file on August 6, pending a review of their fiscal impact, they will be considered at the committee's next meeting.

Contact your senators and members of Senate Appropriations to urge them to oppose AB 1450, AB 1999 and AB 2039.