SB 940 - Temporary Service Employees

In 2008, the legislature passed SB 940 (Yee - Temporary services employees: wages), which modifies Labor Code § 201.3, and changes payroll practices applicable to “temporary service workers.” With certain exceptions, temporary workers must be paid on a weekly basis. Wages for the current week’s work are due on the payday of the following calendar week. When the assignment is completed, the final wages for the assignment must be paid by the date of the regular payday in the week following the completion of the assignment, provided, however, that certain temporary employees assigned to work “day to day” must be paid at the end of each day. Failure to comply with these deadlines subjects the employer to waiting time penalties.

The full text of the bill, including the full text of the new and amended Labor Code sections, can be read at this link.

Comments

[Tim Colling]

Unfortunately the wording of SB940 is so broad that many other types of employers, just temp agencies, are probably also subject to it (and don't know so!):

"Temporary services employer" means an employing unit that
contracts with clients or customers to supply workers to perform
services for the clients or customers and that performs all of the
following functions:
(A) Negotiates with clients and customers for matters such as the
time and place where the services are to be provided, the type of
work, the working conditions, and the quality and price of the
services.
(B) Determines assignments or reassignments of workers, even if
workers retain the right to refuse specific assignments.
(C) Retains the authority to assign or reassign a worker to
another client or customer when the worker is determined unacceptable
by a specific client or customer.
(D) Assigns or reassigns workers to perform services for clients
or customers.
(E) Sets the rate of pay of workers, whether or not through
negotiation.
(F) Pays workers from its own account or accounts.
(G) Retains the right to hire and terminate workers.

So, if you think about it, this applies for example to
- Plumbing repair companies that come out to fix the leaky toilet in your house
- Painting companies that come to your office or house to paint the walls
- etc...

- Tim