07/04/2022

Legislature passes bill that penalizes retailers hiring rule-breaking trucking companies

A bill that would penalize retailers that hire trucking companies which have legal judgments against them for labor law violations is now a signature away becoming law after it was passed by the California legislature on Friday, Aug. 31.

Senate Bill 1402, authored by state Sen. Ricardo Lara (D-Bell Gardens), was passed by a majority vote in the Senate on Friday afternoon – right at the start of Labor Day Weekend — after being approved by the state Assembly the day before and sent along to Gov. Jerry Brown.

. . . Under the legislation, when retailers hire trucking companies that have unpaid legal judgments against them, those retailers become jointly liable should the trucking companies commit new violations of state labor and employment laws.

Such violations could include failure to pay wages, imposing unlawful expenses on employees, failure to provide worker’s compensation insurance and misclassifying employees as independent contractors.

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