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New California law affects labor contracts

California became the largest and most successful economy in the United States with the resources to make nearly anything and labor pools with the right abilities. Labor disputes have shaped how employers treat employees at several times over the years, but strikes are not the only way to change this sort of history.

A new law just created in Sacramento is the most recent change in the relationship between business owners and the people who do the work. Companies who are accustomed to engaging freelance and contract employees in the so-called “gig economy” will have to grant these workers protections closer to regular employees.

These protections include minimum wage guarantees as well as paid sick days and health insurance benefits. The reasoning is that taxpayers end up paying the bill for employers who would rather not have to grant these guarantees to workers.

Some smaller businesses are concerned that this move would cause serious financial issues that may impact profits or even their own existence. Disputes over the status of employees may complicate legal matters as well as cost employers more.

Disputes over all sorts of contracts in the construction industry can slow or stop projects, leading to failures of operations or entire businesses. This is why the best offense is a good defense, including lawyers to manage the legal implications of contracts.

If employers are not sure if their practices fit new or old guidelines in California, it may be best to discuss the matter with legal counsel. An attorney can help review contracts in which businesses engage and make sure compliance practices avoid potential disputes.