California Labor and Employment Legislation Alert

The first half of the 2011-12 Regular Session of the California Legislature has concluded.  Attached is a summary of those labor and employment-related bills that Governor Brown approved and will become law on January 1, 2012 (except as otherwise specified), as well as significant bills that Governor Brown vetoed. 

While Governor Brown exercised his veto power far less than his predecessor did, employers should be relieved that Governor Brown did not approve all the new legislation favoring the plaintiffs’ bar and organized labor to the detriment of California employers.  Governor Brown vetoed a number of bills that he believed would harm California businesses.  However, he did give a nod to organized labor by approving several bills that will make operations more difficult for many California employers. 

The most significant labor and employment-related bills the Governor approved place restrictions on employers’ use of credit reports, prohibit and penalize “willful misclassification” of independent contractors, and place requirements on health insurance plans and employers regarding coverage of employees on maternity leave and payment for maternity and autism services.  Notably, the Governor approved a bill revising certain procedures under the Agricultural Labor Relations Act, which Governor Brown originally signed into law back in the 1970s, but he vetoed more sweeping reform of the ALRA with respect to card checks.