IMPORTANT AB 1513 UPDATE: Court Declines To Further Delay The Implementation Of AB 1513
By: Kevin Cleveland
Updating our previous e-blast regarding the legal challenge to AB 1513, on July 18, 2016, in Nisei Farmers League v. CA Labor and Workforce Development Agency et. al, the Court heard oral argument regarding Plaintiff’s request for a preliminary injunction against the enforcement of AB 1513 (CA Labor Code section 226.2). On July 25, 2016, the Court issued an order denying the request. As a result, the temporary restraining order previously issued by the Court expired on July 18, 2016. Pursuant to the Court’s order, companies have until July 28, 2016 to sign up with the Department of Industrial Relations (“DIR”) to indicate their intent to make AB 1513 payments if they have not yet done so.
The Court’s denial of the request for a preliminary injunction does not bode well for the challenge to AB 1513 by the Nisei Farmers League. The basis of the Court’s denial was that Plaintiff failed to show that they were likely to succeed on any of their causes of action. Should Plaintiff continue with their challenge, they will be facing an uphill battle.
COUNSEL TO MANAGEMENT:
Other than the July 1, 2016 deadline to sign up with the DIR being extended to July 28, 2016, the Court’s rulings in the Nisei case did not affect the deadlines created by AB 1513 (CA Labor Code section 226.2). If you are not signed up to make payments but would like to participate in AB 1513, you have until July 28, 2016 to sign-up and should immediately discuss this matter with your attorney. If you have already signed up, you should consult your attorney regarding the next steps to ensure that your company is doing everything necessary to take advantage of the AB 1513 safe harbor before the December 15, 2016 deadline to complete all necessary steps. If you are one of the Saqui Law Group’s clients, we will be sending out additional information on next steps shortly now that the Court has ruled on this matter.