This California Law Firm Publication by Ogletree, Deakins, Nash, Smoak & Stewart, P.C. discusses a new California law which will require companies to increase oversight of its contractors' employees. Under AB 1897, companies with 25 of more employees which obtain or receive workers from labor contractors to perform work within their regular course of business, will be liable for the payment of wages to those employees. Companies will also be liable for the contractors' failures to secure workers compensation coverage and for compliance with all occupational health and safety requirements. Companies will be liable under this law even if they were not aware of the occurrence of any violations. Certain companies will be exempt from the law's requirements, including political subdivisions of the state and those companies that use five or fewer workers from labor contractors at a time. AB 1897 becomes effective on January 1, 2015.