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California Legislature Shelves "Opportunity to Work Act"...For the Time Being


Last week, the California Legislature effectively put the brakes on taking any action on AB 5, the Opportunity to Work Act, for the time being.  The bill, as currently written, would add Section 559 to the California Labor Code and require employers with 10 or more employees in the state to offer additional work hours to existing nonexempt employees before the employer could hire additional employees or temporary employees.  Perhaps one of the more important carve outs in the bill is the fact that employers would not be required to offer additional work hours to existing employees if those hours would result in overtime compensation being paid.

This bill was expected to face criticism from employers and pro-business groups with many viewing AB 5 as a burdensome restriction on an employer's ability to freely hire employees at its discretion.  With the California Assembly Appropriations Committee deciding to turn AB 5 into a two year bill (in essence meaning AB 5 will not move forward this year but may be available for further action and consideration next year), opponents of the bill have scored a victory for the time being.  It will be interesting to see what progress, if any, this bill makes next year.  Stay tuned.


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