On Sept. 28, 2014, California Governor Jerry Brown signed into law a bill that will hold employers liable for certain California Labor Code violations committed by their labor contractors, regardless of the employer’s control over or direct participation in such violations.

New Shared Liability Standard

Effective Jan. 1, 2015, under Labor Code § 2810.3 (Section 2810.3), each affected California employer will:

“Share” responsibility and liability with its labor contractors with respect to the “payment of wages” to […]

Since its inception in 2011, the 90 day trial period has been the source of substantial controversy, interpretation and analysis. Throughout this, a golden thread has emerged whereby the provisions are interpreted strictly and employers must be careful in exercising their rights to dismiss pursuant to the trial period.

This was highlighted recently in the decision of Hutchison v Canon New Zealand Limited where verbal notice of termination given within the 90 day trial period […]