Chapter 6. Division of Labor Standards Enforcement
Subchapter 13.5. Enforcement of Client Employer Liability Under Labor Code Section 2810.3

§ 13832. Methods for Determining Liability Among Multiple Client Employers.

(a) When enforcing client employer liability under Labor Code section 2810.3 where a labor contractor provides the same worker(s) to perform labor, work, or services at the premises or worksite of more than one client employer in a workweek or workday, the shared statutory liability for wages, damages, and penalties for each client employer must be allocated among the client employers. Allocation may be based upon any of the following methods, at the discretion of the Labor Commissioner in an administrative proceeding or the court in a civil action, as appropriate under the circumstances of the case:

(1) Hours Worked Per Workweek by the Worker for Each Client Employer. The amount of time that the worker spent performing labor, work, or services at the worksite or premises of each client employer, including compensable travel time to and from the first and last worksite, and between client employer worksites (if any), during the workweek, shall be calculated as a percentage of the total number of hours worked by the worker for the labor contractor during that workweek. The resulting percentage for each client employer shall be its share of liability as applied to the full amount of all wages, damages, and penalties owed by the labor contractor for that workweek.

(2) Hours Worked Per Workday by the Worker for Each Client Employer. The amount of time that the worker spent performing labor, work, or services at the worksite or premises of each client employer, including compensable travel time to and from the first and last worksite, and between client employer worksites (if any), during the workday, shall be calculated as a percentage of the total number of hours worked by the worker for the labor contractor during that workday. The resulting percentage for each client employer shall be its share of liability as applied to the full amount of all wages, damages, and penalties owed by the labor contractor for that workday.

(3) Worker Testimony to Determine Allocation in the Absence of Accurate Records. If any necessary records required in section 13831 are not produced, incomplete, inaccurate, or insufficient, the Labor Commissioner or a court may rely on any other available evidence, including reliable evidence from client employers. Just and reasonable inferences about the allocation may be made based on worker testimony, including any estimates, as to travel time and time spent performing labor, work, or services at the worksite or premises of each client employer.

(4) Equal Apportionment Where Evidence is Insufficient. If records described in section 13831, any other available evidence, and worker testimony are deemed insufficient to determine allocation of liability based on subdivision (1) or (2), the full amount of liability for wages, damages and penalties will be apportioned equally amongst all known client employers.

Note: Authority cited: Section 2810.3, Labor Code. Reference: Section 2810.3, Labor Code.

HISTORY

1. New section filed 4-16-2020; operative 7-1-2020 (Register 2020, No. 16).