Opportunity to Work Act (Bill AB5)

The California legislature is proposing Bill AB5 which, if passed, would require employers with 10 or more employees to offer additional work hours to an existing non-exempt employee(s) before utilizing a staffing firm and/or contractor. The employer will be required to document that they offered the additional work hours to their employee(s). If the employer doesn’t comply with the new Labor standards, the employee has the right to file a complaint. The bill proposes that violation of this provision will be punishable by a civil penalty.

The American Staffing Association (ASA) and California Staffing Professionals (CSP) have partnered together to encourage California staffing companies (and clients) to contact their Assembly representatives, stressing the harm of this bill. Here are a few additional actions laid out by ASA and CSP:

  • Urge legislators to oppose the bill. You can use the sample letter provided. Please modify the letter to tell your staffing company’s story.
  • Contact your firm’s clients. Urge them to reach out to legislators and provide additional explanation as to the potential harm of the proposed bill. Here’s a sample letter for clients to send.
  • Keep CSP updated on your efforts. The CSP’s lobbyist would like to know which staffing firms and clients have contacted legislators. Send the list to Scott Bicksler at sbicksle@aerotek.com.

Questions? Please contact your Assurance advisor.

Information contained herein is not intended to constitute tax or legal advice and should not be used for purposes of evading or avoiding otherwise applicable regulatory responsibilities as issued by the federal or state government(s) and/or taxes owed under the Internal Revenue Code. You are encouraged to seek advice from your legal or tax advisor based on your circumstances.