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As Governor Is Forced To Veto Bill That Would Have Allowed Firms to Pay Employees Weekly."

Hogan & Hartson LLP, 10.18.2007

On October 14, 2007, California Governor Arnold Schwarzenegger rejected a propose Save d amendment to the California Labor Code that would have allowed temporary staffing agencies to pay employees on a weekly basis, rather than every time a project ends.

The Governor supported the weekly pay change, but vetoed the bill because it created additional worker’s compensation liability for staffing clients.

According to a veto message posted on the Governor’s website, while the Governor supported the intent behind clarifying compensation for temporary employees, the Governor did not approve of other aspects of the bill which would have imposed joint and several liability for workers’ compensation coverage of temporary employees on employers who contract with staffing agencies.

Although the Governor’s veto of Assembly Bill 1710 marks a loss for temporary staffing agencies,the Governor’s recent vetoes of other employment-related bills signal a partial return to sanity in California.

In total, the Governor vetoed 10 labor and employment measures on October 14th,many of which favored employees. In vetoing these bills, the Governor repeatedly stated his desire to avoid unwarranted burdens on California employers.  

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