Labor legislation faces stiff Senate Appropriations Committee inspection

Progressive legislators in Sacramento who set out this year to remake labor law in the state ran into an impediment on when the Legislature came back from a month-long recess on Monday: the Senate Appropriations Committee.

Unlike other legislative committees, Appropriations concerns itself only with the cost of potential laws and whether they will fit within the state budget passed in June.

Numerous bills with widespread Democratic support ended the day on the dreaded "suspense file," including a closely watched pair of labor bills, AB 5 and AB 51, both by Assemblywoman Lorena Gonzalez, D-San Diego. The suspense classification can apply to any measure with a potential cost of more than $150,000.

"Please refrain from lengthy policy discussions because you've already had your policy committees," committee Chair Sen. Anthony Portantino, D-La Canada Flintridge, warned lawmakers at the beginning of the multi-hour hearing.

Both bills could potentially die on the file without ever receiving another vote though that would be unusual for popular, high-profile bills. But the decision could force supporters to accept amendments they otherwise would not.

AB 5 seeks to codify the state Supreme Court's Dynamex decision regarding the limits of what workers could be considered independent contractors under state law. AB 51 would bar employers from requiring an arbitration clause as a condition of employment; Former Gov. Jerry Brown vetoed a similar measure last year because he said it would violate the Federal Arbitration Act.

Department of Finance Legislative Director Jolie Onodera testified AB 51 would lead to state costs in excess of $400,000 a year to enforce. Onodera said the price tag for AB 5 would be more than $2 million, not counting potential litigation.

Numerous travel agents, interpreters and other professionals were on hand to urge that their profession be granted an exemption to AB 5 that would allow them to remain independent contractors. At least one Republican could not resist an urge to relitigate the underlying court decision.

"I believe that this Dynamex decision from the California Supreme Court might go down in history as one of the worst decisions that court has ever made," Sen. Brian Jones, R-Santee, said, pausing briefly for scattered applause from the audience. "Please be patient with the Legislature as we try to work this out."

-- Malcolm Maclachlan