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Controversial Workers’ Comp Bill Removed From Agenda

SACRAMENTO, CA – April 19, 2017 - AB 206 (Gonzalez-Fletcher, D-San Diego), a bill that requires workers comp insurance to day laborers, such as nannies and landscape maintenance workers, was removed from the agenda of the California Assembly Insurance Committee today.

“This was one of the most controversial bills of the year in the insurance area,” IIABCal Lobbyist John Norwood said. “The bill would have substantially expanded the workers’ compensation coverage currently provided under homeowners and renters policies.”

Under current law, occasional residential workers are covered by the workers’ comp component of the homeowners or renters policies if they work at least 52 hours over the proceeding 90 days and are paid at least $100.

“AB 206 would have eliminated the 52-hour threshold thereby providing coverage for any person working at a residential property that was paid $100 or more,” Norwood said. “The target for this bill which was sponsored by the Applicants Attorneys Association were so-called day laborers that are hired by homeowners or by contractors and brought on the residential property to do projects.

“Since this would substantially change the type of work that is currently covered from household chores and child care to more construction related work, the bill was expected to dramatically increase the cost of this component of the homeowners or renters insurance policy,” Norwood said.

AB 206 is a two-year bill, so it might be heard again next January, he said.