Legislators Moving Forward with Previously Stalled Proposals

(January 13, 2020) The California Chamber of Commerce today announced it is continuing the battle against five job killer bills that are moving again as the 2020 legislative session begins.

CalChamber’s full list of 2020 job killer legislation will likely be released in mid-March. Bills that make CalChamber’s yearly job killer list are those that pose a threat to California’s economic growth, competitiveness and job creation.

The five identified job killer bills are:

• SB 37 (Skinner; D-Berkeley) Staggering Corporate Tax Hike — Imposes a targeted tax on California business, which, for certain companies, would raise California’s corporate tax rate – already one of the highest in the nation – up to a staggering 22.26%, which amounts to an increase of about 150% and would undoubtedly discourage companies from locating or further investing in the state.

SB 37 will be considered by the Senate Governance and Finance Committee on January 15.

• SB 246 (Wieckowski; D-Fremont) Targeted Tax on Oil and Gas Operators — Unfairly targets one industry by imposing a 10% oil and gas severance tax onto an oil and gas operator, adding another layer of taxes onto this industry that will significantly increase the costs of doing business, thereby increasing prices paid by consumers for goods and services in this expensive state as well.

SB 246 will be considered by the Senate Governance and Finance Committee on January 15.

Action Alert: Oppose Job Killer SB 246

• SB 567 (Caballero; D-Salinas) Expands Costly Presumption of Injury — Significantly increases workers’ compensation costs for public and private hospitals by presuming certain diseases and injuries are caused by the workplace and establishes an extremely concerning precedent for expanding presumptions into the private sector. Amendments were passed on January 8, 2020, but the amendments do not address these concerns.

SB 567 failed to move out of the Senate Labor, Public Employment and Retirement Committee last year, but was granted reconsideration.

• AB 628 (Bonta; D-Oakland) Uncapped New Leave of Absence for Employees and Their Family Members — Significantly expands the definition of sexual harassment under the Labor Code, which is different than the definition in the Government Code, leading to inconsistent implementation of anti-harassment policies, confusion, and litigation. Also, provides an unprecedented, uncapped leave of absence for victims of sexual harassment and their “family members” which is broadly defined, that will add another layer of burdens on employers and their ability to manage their workforce.

AB 628 failed to pass the Assembly last year, but was granted reconsideration.

• AB 882 (McCarty; D-Sacramento) Limitation on Ability to Maintain a Safe Workplace — Significantly undermines an employer’s ability to maintain a safe, drug-free workplace, by prohibiting an employer from discharging an employee who has tested positive for a drug that is being used for medical purposes, which will expose employers to costly litigation.