NFIB Reacts to Assembly Drastically Expanding General Contractor Liability

Date: September 14, 2017

Related Content: Issues State California Labor

Small businesses urge Governor Brown to Veto AB 1701 (Thurmond)

National Federation of Independent Business/California
Contact: Shawn Lewis (916) 342-9315; [email protected]
Follow: @NFIB_CA and on Facebook

NFIB Reacts to Assembly Drastically Expanding General Contractor Liability
Small businesses urge Governor Brown to Veto AB 1701 (Thurmond)

SACRAMENTO, Calif., September 14, 2017 – Following the California State Assembly passing Assembly Bill 1701 (Thurmond) last night, NFIB California State Executive Director Tom Scott issued the following statement on behalf of our 22,000 small business members:

“We are deeply concerned with the passage of AB 1701 and are urging Governor Jerry Brown to veto this bill as it unfairly holds businesses liable for employment actions for which they are not responsible, and it creates a new private right of action to sue innocent businesses.

“NFIB believes that every employee should be paid what they have earned and are legally entitled to. At the same time, we are strongly opposed to holding one business accountable for the decisions of another, which is what AB 1701 seeks to do. General contractors often hire many different subcontractors on a project who often sub work out to others as well. It is impossible for a general contractor to know the employees of other companies that may be working on a project, and it is extremely unfair to hold the general contractor responsible for the actions of an entirely separate business.

“It should be the direct employer of an aggrieved employee that is held accountable for any non-payment of wages, not the small business who has followed the law and paid their employees. At a time when small business owners already face a wide range of costs and potential lawsuits, NFIB is strongly urging Governor Brown to veto AB 1701.”


For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB has 350,000 dues-paying members nationally, with over 22,000 in California. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. To learn more visit

Related Content: Issues | State | California | Labor

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