California Bill Would Make Hospitals Legally Responsible for Labor Subcontractors

California Assembly Bill 1897 would increase the legal responsibility of healthcare organizations when using labor subcontractors.

Under the recently amended bill, a hospital would share all legal responsibility and liability with companies that supply individuals to the hospital to perform services or labor. For instance, if a labor contractor fails to pay the workers supplied, the responsibility for employee payment would fall on the hospital, according to a Sacramento Business Journal report.

The bill has been met with resistance from some lobbyists. "This is a huge overreach," said Ken DeVore, a lobbyist with the National Federation of Independent Business, in the report. Not taking on responsibility for legal and financial liabilities of contracted workers is "the whole reason you subcontract out," he said.

The bill was introduced by Assembly Member Roger Hernadez (D-West Covina).

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