CalChamber unveils year’s first ‘job creator’ proposal. State labor leader calls it ‘dangerous’
The California Chamber of Commerce has announced its first “job creator” bill of the year, but the proposal is already facing opposition from the state’s largest union.
Senate Bill 592, authored by Sen. Josh Newman, D-Fullerton, would protect employers from being financially penalized in some lawsuits over labor violations.
Currently, employers are financially liable for violations if a court’s decision overturns existing policy from the Division of Labor Standards Enforcement. If approved, the bill would shield employers from these fines if they can prove “good faith” and show that they relied on DLSE guidance.
Newman, through his office, declined to comment on the bill. The measure is co-sponsored by the California Hispanic and Asian Chambers of Commerce.
“What we’re saying is those $1,000 in fines that come from an employer relying on the state’s opinion and their guidance, they should not be penalized for that,” said Julian Canete, president of the California Hispanic Chamber of Commerce. “They thought they were doing the right thing.”
CalChamber supported a similar bill in 2017 that eventually failed in a Senate policy committee. At the time, the measure faced opposition from labor groups including the California Labor Federation, the umbrella organization representing the state’s 2 million union members.
Lorena Gonzalez, the current head of the federation, said this current version of the bill remains “dangerous” and takes away workers’ rights. She argues SB 592 would end up granting blanket immunity to employers instead of judging each case individually.
“When it comes to labor law, you have to look at the whole picture and you must have the voice of the workers,” Gonzalez said. “We’re never going to agree to take away the voice of the workers in determining whether there’s a labor law violation.”
Canete pushed back on criticism that the measure is anti-worker. Under the bill, employers would still owe any unpaid wages and must provide a defense that demonstrates they are entitled to this “good faith” determination.
Canete added that small business owners are particularly at risk in lawsuits as they can not afford penalty fines or attorneys for litigation.
“It would eventually save our small businesses a headache, but also give them a better understanding of the compliance they have to meet,” he said.
Translating employment law website
Unlike the 2017 version, SB 592 proposes a secondary change to state labor law.
The measure would also require the Department of Industrial Relations to translate its entire website, which includes the employment laws and guidelines. If approved, all website materials would be available in Spanish, Chinese, Tagalog and Vietnamese by Jan. 1, 2026.
“We definitely support employee rights and they should also be able to understand the law in a language that’s much more fluent to them,” Canete said.
Gonzalez said the labor federation supports this portion of the bill.
“If Senator Newman wants it to pass, he should redline the entire portion about limiting employer liability,” said Gonzalez.
Since 2008, CalChamber has released an annual list of what it deems “job creator” bills. In April, the organization will release its list of “job killer” bills.
This story was originally published March 9, 2023 at 11:42 AM with the headline "CalChamber unveils year’s first ‘job creator’ proposal. State labor leader calls it ‘dangerous’."
