We keep finding new anti-business laws signed by Governor Davis before he left out of office. This one is Labor Code Section 2810. Under this law it now illegal to enter into any contract for labor if you (as the hirer) know, or should know, that the price is not enough to allow the labor contractor to comply with all local, state and federal laws governing the services to be provided.

For starters, the law sets out no less than ten categories of information that you must collect before signing any agreement. If you fail to ask for ANY ONE of the items detailed below, the law says that you are deemed to know that information.

What am I expected to know?

Compliance with section 2810 will be presumed if your contract is reduced to a single document which includes ALL of the following:

1. The name, address, and telephone number of the person or entity requesting the labor or service and the labor contractor;

2. A description of the labor or service to be provided including when the service is to start and end;

3. The employer's identification number;

4. The labor contractor's worker's compensation insurance policy number and the name, address and phone number of the insurance carrier;

5. The vehicle identification number of all vehicles owned by the labor contractor which may be used for transportation in connection with the contracted service;

6. The address of any real property used to house workers in connection with the agreement;

7. The total number of workers to be employed under the agreement, the total amount of wages to be paid and the date(s) wages are to be paid;

8. The amount of commission or other payment made to the labor contractor;

9. The total number of persons who will be utilized as independent contractors along with a list of current license identification numbers; and

10. The signatures of all parties to the agreement and the date the agreement was signed.

If the total number of workers or independent contractors is unknown, the number may be estimated. But you are charged with a continuing duty to confirm the number and to supplement the original agreement in writing. All written agreements must be kept for at least four years following the end of the contract.

What Do You Risk By Adopting A "Don't Ask, Don't Tell" Policy?

Any employee of your contractor who is injured or damaged by a violation of this section may file a civil complaint against you. If it is found that the contract price was not enough to meet the requirements of all laws and regulations found to apply to the job, you will be responsible for the employee's actual damages, or alternatively, for penalties of $250 per employee per violation for the initial violation, and $1,000 per employee for each additional violation. The employee may also file for injunctive relief; that is, a court order requiring or prohibiting you from further violations.

In addition, you will be ordered to pay the employee's attorney's fees.

Who Is Not Covered By This Law?

The law exempts homeowners. The only other exemption is for labor contractors providing services under a union bargaining agreement. Want to guess who sponsored this law, and why? For strategies on coping with this new challenge, call or e-mail us.

By The Way:

Over the years that we spent developing our specialty in Cal/OSHA defense, our Rolodex has filled with the names of the safety and health professionals we have gotten to know. If you have a problem which needs professional attention and are uncertain how to proceed, call or e-mail us. Even if you have no current need for our support, we will be happy to help you to find the right expert consultant for your situation.