IWLA urges rejection of California bill re-regulating warehouses and their customers

Bill would reverse policy enacted in 1980s during Gov. Brown's first term.

By ·

The International Warehouse Logistics Association today urged California Gov. Jerry Brown to veto Assembly Bill 1855 (Torres). The bill regulates the form and content of contracts entered into by California’s warehouse industry.

According to the IWLA, the bill if enacted would roll back 32 years of sensible working economic regulations strictly adhered to by California warehouse owners and operators. Most ironic, the bill reverses a policy this same governor enacted in 1980 during his first term.

AB 1855 was introduced by Assemblymember Torres earlier in 2012, and sought to redress labor law abuses by temporary staffing firms that hired “temp workers” to work in warehouses. However, the bill goes far beyond addressing abuses by these firms. Under AB 1855, warehouse companies and their customers would be required to file copies of warehouse contracts with the California Labor Commissioner in a form, content and manner set by the bill.

“Once again California is out of step with the rest of the United States, and AB 1855 places new contract burdens on any customer that is doing business with a warehouse in California,” said Joel Anderson, IWLA president & CEO.

Anderson noted that warehouse contracts with customers are already covered by the Uniform Commercial Code, a law adopted by all the states to allow companies to do business in states other than the one where they are based, under the same terms of contract law.

IWLA had urged members of the California state legislature to amend the bill in policy committees and on the floor before a final vote was taken. “The California legislature just doesn’t get it. Adding more burdens to businesses, especially those same burdens Gov. Brown removed during his first term, makes it much more economically attractive to store goods out of state especially in Nevada, Arizona and Oregon, and then ship those goods into California,” Anderson said. “That formula can only mean disaster. The loss of jobs and taxes will be immense because California will be the only state to have re-regulated warehouse contractors and contracts.”

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Efficiency improvements in Track/Trace Enhances Customer Loyalty
Consumer satisfaction with the quality of your products is clearly important, but the service you provide before and after the sale is equally important to any business, but often overlooked as benefiting the bottom line.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...