California employers may be able to breathe a sigh of relief – for now. One of the most controversial legislative proposals of the year – AB 5 by Assemblymember Lorena Gonzalez Fletcher (D-San Diego) – appears have been shelved for the year.
Based on similar ordinances enacted in San Francisco, and (most recently as Measure E) in San Jose, AB 5 would have enacted the “Opportunity to Work Act” in an effort to require employers to provide additional hours of work to part time employees. AB 5 would have applied to employers with 10 or more employees in the state, and required such employers to offer additional hours of work to an existing employee before hiring any additional employees or subcontractors, including hiring an additional employee or subcontractor through the use of a temporary employment agency, staffing agency, or similar entity.
AB 5 was one of the most heavily-opposed bills by the employer community, and been labeled a “job killer” by the California Chamber of Commerce.
However, several employer representatives in Sacramento have received confirmation from the author’s office that she is “parking” the bill this year (it is currently pending in the Assembly Appropriations Committee after passing its first policy committee) – meaning the bill will move no further in the legislative process in 2017.
But this respite may be short-lived. The author has committed to picking up this fight next year – and the bill would be eligible to be taken up in January 2018.
This is still one to watch…but appears this might be a battle for another day.