This bill would have a severe economic impact on local, family businesses like the beer wholesalers by exposing them to increased liability and the potential for costly litigation claims.
AB 1127 … would place a powerful hammer in the hands of over-zealous prosecutors to intimidate businesses into pleading to lesser Labor Code violations when threatened with Penal Code prosecution.
Additionally, in a construction setting, where the type of work is inherently more dangerous than an office setting, it will be difficult to hire managers and supervisors for fear that they would be held criminally liable for accidents.
Under this measure, accidents will have devastating effects on employers. Encouraging lawsuits is good for attorneys, bad for business, and ultimately, bad for employees.
The provisions of this bill are extremely open-ended, and encumber both employers and Cal/OSHA with many unreasonable administrative burdens and costs.
We are also concerned by the provision that would prohibit a citation from being stayed pending an appeal. This provision would require that alleged violations be corrected before they are proven to exist, making an employer guilty until proven innocent.
… the construction industry is involved in Voluntary Protection Programs with their employees to help encourage safety precautions and identify possible dangers before an injury occurs. AB 1127 does nothing to encourage this type of cooperation between employers and employees to promote worksite safety.
Serves to drive independent contractors out of business and inhibit the ability of small business to survive by making the business liable for actions of a contractor. Small business and contractors who become small businesses are taking up the slack from corporate downsizing and contribute greatly to the prosperity of the state.
This bill would have a negative impact on California’s economy by creating an overly rigid regulatory structure that would discourage new businesses from locating here and existing businesses from expanding, therefore, slowing the economy.
It is our belief that while AB 1127 will not guarantee the prevention of even one injury, it has the potential to cost our members hundreds of thousands of dollars in new programs based on unsound science and face potential increases in workers’ compensation costs.