Monday, October 10, 2011

Governor Brown Legislation/ Oct 20th event

On Friday, Governor Brown signed Small Business California sponsored legislation SB 826[Leno]. This would place minimal fines on claims administrators who fail to report or provide inaccurate information to the Workers Compensation Information System. This is important because workers compensation policy is developed by information provided the WCIS. Initially, this bill was opposed by the California Chamber, California Manufacturers, the Joint Underwriting Association and the Coalition of Workers Compensation. We were able to eliminate their opposition, except for the Joint Powers Association. But, we were able to get the support of claims administrators.

Yesterday was the last day for the Governor to sign or veto bills. We are waiting to find out what happened on Sunday but we do know that SB 459[Corbett] was signed by the Governor. This bill will increase fines on employers who willfully and knowingly misclassify independent contractors. Small Business California applauds going after the underground economy because this is a big issue for small business, but we would like to see the state clarify the definition of independent contractors. EDD and IRS do not have the same definition and we think this should be clarified.

As you all know, the IRS established a 20 points list which helps to define an independent contractor (link below), but they do not say how many points must be followed to establish independent contractor status.

Another supported bill we are watching closely is SB 469 [Vargus]. This bill will require super-stores over 90,000 square feet to do an economic study of the impacts to the community, including small businesses. We should hear the Governors position today.
October 20th is quickly approaching and if you haven’t done so already, please take the survey (link below).

Also, if you are in the Bay Area I hope you will attend the symposia at the Julia Morgan Ballroom in SF. (registration link below):

This event is being co-hosted by Travelers and Small Business California. We have added a section talking about big business working with small business and are pleased to have John Legnitto, from Recology, talking about what they are doing to help small businesses. Please take the survey and register now for this free event. We will also validate parking.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA 94116

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