Following is a brief summary of the Tustin Chamber’s positions on bills that have been identified as “job killer” bills.
OPPOSE AB 1450 (Allen) – Employment: Discrimination: Status as Unemployed.
Prohibits employers from legitimately inquiring into an applicant’s most recent employment history, due to fear that any such inquiry will ultimately lead to penalties and costs on the basis that the applicant was discriminated against because of his/her status as unemployed. In order to avoid accidentally exposing an applicant’s current status as “unemployed” during the application process, employers will ultimately be barred from: (1) asking for information regarding the applicant’s most recent employer; (2) the dates of employment with the most recent employer; or (3) reasons for the separation of employment with the most recent employer. Any of these legitimate inquiries could reveal that the applicant is currently unemployed, thereby subjecting the prospective employer to fees, penalties, and potential litigation. It also unfairly targets state contractors by imposing a three-year debarment from state contracts if found to have violated the provisions of the bill, thus essentially providing a hiring preference for the unemployed with state contractors.
OPPOSE AB 2408(Skinner) – Taxation: Deductions: Net Operating Loss Carrybacks.
Creates Inequity in the Tax Structure. Harms struggling small businesses and start-ups by repealing the Net Operating Loss (NOL) carry back deduction, a lifeline that helps employers stay afloat, retain employees, and continue investing in their businesses in an economic downturn. California businesses of all sizes and structures report and pay tax on their net income based on an arbitrary 12-month reporting period. An NOL occurs when a taxpayer’s business expenses exceed their revenue during that arbitrary 12-month reporting period. The NOL deduction allows a business taxpayer to offset current losses against future taxable income (carryover) or prior liabilities (carryback). This bill reinforces with employers that California’s taxing environment is unpredictable. Lack of predictability adds to risk, increased risk adds to overall cost of doing business, further hindering California’s economic recovery.
Whatever your position, contact your legislators to let them know what your positions are on these bills. Thank you.
Government Affairs Counsel Chair