These Labor Code provisions will prohibit employers from providing janitorial services without the required registration (which can be revoked by the Labor Commissioner under various circumstances). The referenced registration process imposes a number of obligations upon the employer. Among them are mandatory sexual violence and harassment prevention education.
Labor Code §1432 (b) provides that any person or entity (including a community association) that contracts with a janitorial services business that lacks current and valid registration will be subject to substantial civil fines of $2,000-$10,000 for a first offense and $10,000-$25,000 for subsequent violations.
Associations that contract with janitorial service providers will be able to verify the registration of the janitorial employer in a public database that will be provided by the Department of Industrial Relations in the Labor and Workforce Development Agency.
The referenced Labor Code provisions are not effective until 2018. However, many associations enter into one year contracts with service providers and many contracts automatically renew under various circumstances. Consequently, well in advance of the effective date of this new law, associations should carefully evaluate the terms of any janitorial-related contract executed, extended, renewed or modified. In that process, they should consider requiring provisions (in the body of the agreement or in an addendum), that require the janitorial service provider not only to complete its registration by July 1, 2018 (and thereafter maintain that registration through the entire term of the agreement), but also require that it defend and hold the Association harmless from any fines/detriment arising from a failure to do so. Associations should also consider including a right to immediately terminate the contract if, at any time on or after July 1, 2018, the service provider is indicated as being not properly registered for any reason.
Mr. Petchul is a Partner in Berding | Weil and serves as General and Litigation counsel to California community associations. His General Counsel work encompasses a full breadth of issues including preparation of opinion letters, disciplinary proceedings, governing document amendment, contract review, preparation and negotiation, election proceedings and strategic legal planning. Mr. Petchul has lived and practiced real estate and corporate law in southern California since 1991. For 15 years prior to joining Berding | Weil, Mr. Petchul, was a founding partner of the law firm of Hickey & Petchul, LLP, practiced almost exclusively within the community association industry, and in so doing, served as General and Litigation counsel to an extensive array of community associations and building owners.