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Buzz Around California’s AB 1897 Has Been Amazing

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Big Buzz Around California’s AB 1897 and Temporary Employment Agencies  

The Buzz around California’s AB 1897. Please note that this article will likely apply to other states than just California.  Senate Bill AB 1897 has caused quite a stir in California. Our California clients have begun to pay attention in a big way since January 1st. There are pages and pages of analyses on AB 1897.

Map Of Buzz Around California's AB 1897 With Location Icon
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I first heard of the bill at the National Workers Comp and Disability Conference last November.   When I first heard of  AB 1897, I thought the presenters were just being too paranoid.   That was until I actually read the bill.

I then started receiving emails from California companies and multi-state companies with interests in the state.

A great summary of the bill, its effects, and a few strategies to avert a claim from a temporary employee or employees were written by CalChamber.   If you read the bottom of page 2 of the guide, there can be catastrophic results such as a class action lawsuit.

[From  The CalChamber guide: ]

Basically, if the labor contractor fails to pay its employees properly or fails to provide workers’ compensation coverage for those employees, the client employer will now be legally responsible.

Why do I reference California so often on Workers Compensation?   The laws and rules from the state often end up as similar concerns in other states.  As we often say at J&L Insurance Consultants, what happens in California will be coming to a state near you in the future.  California remains the Work Comp pacesetter for change. 

Making sure your temporary employee provider has a legitimate policy in place is tantamount to not paying for employees your company did not realize it had in place.

Reviewing your contracts with your temporary service provider and verifying their Workers Comp policy in effect is going to be very important in the future.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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