JULY 2014 – AB 2416 Nonsense Assembly Bill

Nonsense Assembly Bill threatens every business and resident in the State

Once again the legislators in Sacramento have demonstrated their lack of support for the businesses in the State. An Assembly Bill 2416, has careened through the Assembly (on party lines) has made its way to the Senate floor.

AB 2416 creates a new super-lien that would allow employees, governmental agencies or anyone authorized on behalf of the employee to file liens on an employer’s real or personal property, and/or property where work was performed, based on their alleged-yet-unproven wage claims.

It holds non-employer  third parties liable for unpaid wages, precludes any financing options for real property Super-Priority Liens, forces a violation of the mortgage contract, freezes future financing options, places no limit on the number of liens recorded and forces property owners to court to deal with unproven claims.

Existing legal remedies are in place for wage disputes. Employees have a number of options at their disposal to address wage disputes without impacting mortgage financing, blurring property titles and clogging up the court system any further.

AB 2416 would cripple California businesses, severely disrupt commercial and personal real estate markets and would allow unproven wage dispute claims to take precedence over almost all other liens or judgments.

This “job killer” is not only bad for business but bad for the State of California.

The Redlands Chamber has been campaigning to oppose the bill and has asked Chamber members to send letters to not only our representative but also Senators that they believe will listen to reason.

It is imperative that we expose the nonsense legislation that is rampant in Sacramento, identify those that are responsible for it and make them accountable for the outcome.

Success in not determined by the number of ridiculous bills that get approved, but rather metered by the logical, sensible, constructive legislation passed that will keep California viable and identified as business friendly.