California Governor Vetoes Two Employment Law Bills

California lawmakers have recently passed several bills that will affect companies doing business in the state. On Sept. 30, Gov. Gavin Newsom announced he is vetoing two bills that had come to his desk for signatures. This is welcome news to companies, although several bills that will have widespread effect throughout the state have been (and likely will be) signed into law.

These two bills have been vetoed:

Bill Entitling Striking Workers to Unemployment Insurance Benefits (SB 799)

Previously, the California legislature had voted to allow workers on strike to receive unemployment insurance benefits when off for work more than two weeks. This bill was a significant departure from existing law, which does not allow striking workers to receive unemployment insurance benefits.

Citing concerns over increasing unemployment taxes for employers and unemployment trust fund debt for the state, Gov. Newsom vetoed the bill.

Bill Requiring Household Domestic Service Employers to Comply with Cal/OSHA Regulations (SB 686)

If signed by Gov. Newsom, this bill would have required household domestic services employers to comply with the state’s applicable occupational safety and health regulations. This could have subjected any individual household that employs domestic workers to Cal/OSHA regulations, which are primarily designed for businesses. Gov. Newsom vetoed this bill, noting the “severe cost burdens and penalties” middle- and low-income families and older Californians would have faced.

For more information, please contact the Barnes & Thornburg attorney with whom you work or John Kuenstler at 312-338-5924 or john.kuenstler@btlaw.com or Amy Choe at 424-239-3755 or amy.choe@btlaw.com.

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