New Contractor and Subcontractor Labor Law Helps Employees

CaAlmost a week ago, Governor Jerry Brown signed a new law that made companies liable for any contractors or subcontractors’ violations of labor laws.

The Daily Journal cited a case being litigating by Altshuler and Berzon LLP in San Francisco against retail giant Wal-Mart. Attorney Michael Rubin currently represents a class of warehouse workers contracted by Wal-Mart but employed by a staffing company.

Though Wal-Mart was not the employer, it did set the workers’ terms and conditions of employment. Wal-Mart purportedly pressured and encouraged the subcontracting company to circumvent labor laws. This new law will make Wal-Mart directly liable for the subcontracting company’s violation of labor codes.

While plaintiff’s attorneys argue that this loop hole is closing, defense counsel, namely Laura J. Maechtlen from defense firm Seyfarth Shaw, argue that the new law “casts the net too wide.”

Source: Daily Journal