On July 22, California Governor Arnold Schwarzenegger signed into law Senate Bill 940, which will change payroll practices applicable to "temporary service" workers as defined in the statute.
The new law, effective January 1, 2009, clarifies the wage payment obligations of staffing firms doing business in California. The Labor Code amendment provides that the end of a temporary assignment is not a discharge from employment requiring immediate payment of wages. Instead, such employees may be paid on a weekly basis. Certain day laborers and labor dispute replacements must be paid daily. Temporary employees who are discharged from the staffing agency, or who are not eligible for reassignment, still must be paid immediately upon such termination, or within 72 hours of a voluntary resignation. There is an exception to the requirement--staffing firms are not required to pay weekly for employees on assignment in excess of 90 consecutive calendar days. The weekly payment requirement does not apply to these employees unless their employers pay them weekly.