Numerous Immigration-Related Laws Take Effect in California

A number of recent laws in California may have a significant impact on employers of foreign workers in the state. 

New Compliance Responsibilities for Employers that Contract for Labor 

Employers that contract for labor have increased liability under two new laws. A.B. 1897 makes a "client employer" jointly liable, along with any labor agency or labor contractor that supplies the “client employer” with workers, for payment of wages to those workers and workers’ compensation coverage. A "client employer" is defined as a business entity that obtains (or is provided) workers from a labor contractor to perform labor within its usual course of business. 

S.B. 477 changes the definition of a foreign labor contractor to mean a person who performs foreign labor contracting activity. “Foreign labor contracting activity” means recruiting or soliciting for compensation a foreign worker who resides outside of the United States in furtherance of that worker’s employment in California, including when that activity occurs wholly outside the United States. The law also requires, effective July 1, 2016, that foreign labor contractors register with the Labor Commissioner. 

Increased Penalties for Unfair Immigration-Related Employment Practices 

A.B. 2751 amends provisions of existing law that prohibit an employer or person from engaging in unfair immigration-related practices against a person for the purpose of retaliation, including threatening to file or filing a false report or complaint with any state or federal agency. A civil penalty of up to $10,000 per violation can be assessed, and the new law requires any such penalty to be awarded to the employee who engages in protected conduct and is retaliated against. The law also prohibits an employer from discharging or in any manner discriminating, retaliating, or taking any adverse action against an employee because the employee updates or attempts to update personal information based on a lawful change of name, social security number, or federal employment authorization document. An employer’s compliance with these provisions cannot serve as the basis for a claim of discrimination, including any disparate treatment claim. 

Driver’s and Professional Licenses for Undocumented Foreign Nationals

Effective January 1, 2015, California began to issue driver’s licenses to undocumented foreign nationals under A.B. 60. This law, which was enacted in 2013, allows undocumented foreign nationals to obtain a driver’s license if they are able to prove their identity and residence in California. 

A.B. 1660 makes it a violation of the California Fair Housing and Employment Act for an employer or other covered entity to discriminate against an individual on the basis of national origin, which includes discrimination on the basis of possessing a driver's license granted without proof of lawful presence in the United States. The law makes clear that an employer’s actions in compliance with federal employment eligibility verification requirements are not a violation of state law. 

Finally, S.B. 1159 bars denial of professional licenses based on citizenship or immigration status, and allows licensing bodies to accept an applicant's individual tax identification number instead of a social security number. 

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