Legislative News


Thursday, September 22nd, 2011

Make Your Voice Heard Before Governor Acts on Key California Workers’ Comp Bills

Through our coalition with the Workers’ Compensation Action Network, we are able to bring you this Legislative Alert and up-to-date legislative information. Please read the following update on new workers’ compensation measures, that will increase costs and litigation in the workers’ compensation system.

Governor Jerry Brown is busy plowing through more than 600 bills sent to him courtesy of the California Legislature, including several workers’ compensation measures with potential to signficantly impact the system. The governor has already started signing and vetoing measures but must move fast to keep pace with an October 9 deadline.

That’s why we need you to take action today to ask him to sign a key cost-saving measure and veto two bills that will increase costs and litigation in the workers’ compensation system.

Your efforts to communicate with lawmakers on these bills throughout the session have been critical. Now, in the final stage of this year’s lawmaking process, we need to communicate directly with the governor and make sure he knows where employers stand on these issues.

You can visit WCAN’s Action Center to learn more about each bill and send an email to Governor Brown.

  • AB 1155 (Apportionment): This legislation would increase costs and litigation in California’s workers’ compensation system by undermining provisions that protect employers from paying for disability that did not arise from work. Take Action
  • AB 378 (Compound Drugs): This bill closes a costly loophole in current law which allows for abusive prescribing and billing practices for compound drugs, co-packs and medical foods in California’s workers’ compensation system. Click here to read an article from Capitol Weekly about AB 378. Take Action
  • AB 947 (Extends Temporary Disability Benefits): This bill will significantly increase costs and incentivize delays in return to work by creating an exemption to the 104 week cap on temporary disability benefits for injured workers that undergo surgical procedures. The Orange County Register editorialized against this bill in late August. Take Action

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Monday, June 6th, 2011

Little-Known Tax. Massive Impact. Join Our Efforts to Repeal the “3% Withholding Tax”

Brought to you by the U.S. Chamber of Commerce

A little-known federal tax that has the potential to bust the budget of your state and local governments, result in higher taxes, and threaten small businesses, doctors and farmers is headed your way.

Few have heard of it, but many will be affected – unless we can stop it before becoming law in 2013.

The “3% Withholding Tax” mandates that federal, state and local governments withhold 3% from payments for goods and services upfront. It sounds harmless enough until you consider the small businesses that rely on every penny of cash flow to keep their doors open and how they’ll be impacted by a 3% loss of revenue.

Last week, the U.S. Chamber announced a grassroots campaign aimed at repealing the 3% Withholding Tax. Visit RepealWithholdingNow.com to learn more about our efforts and sign our National Letter to stop the 3% withholding.

Here’s how the tax would impact you:

  • The federal government, as well as your state and local governments, withhold 3% from payments to any business that provides them with a product or service. This may include your local office supply store, local builders, electric company or even a business selling equipment to first responders.
  • These businesses will then be forced to raise their prices to make up for the 3% of revenue being held hostage — or simply take a huge hit and risk going out of business.
  • Higher prices could drastically impact government budgets, which are already strapped for cash.
  • Local or state governments may be forced to raise your taxes to help make up for the budget gap.

Like most things, when you punish small businesses, the whole economy suffers.

Similar to the 1099 mandate included in the health care bill, the 3% withholding requirement was an unrelated offset included in the Tax Reconciliation Act of 2005. Unless repealed, the 3% Withholding Tax will go into effect on January 1, 2013.

In today’s economy, the decks are stacked high enough against employers. The last thing they need is another provision aimed at raising revenue at their expense.

Visit RepealWithholdingNow.com and join our efforts to stop the latest burden on business and assault on jobs.

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