Each year the California Chamber of Commerce releases a list of job killer bills to identify legislation that it says will decimate economic and job growth in California. The CalChamber tracks the bills throughout the rest of the legislative session and works to educate legislators about the serious consequences these bills will have on the state.

The 2018 annual list of job killer bills, calls attention to the negative impact that 28 proposed measures would have on California’s job climate and economic recovery should they become law. Of the 28 on the list, some have been removed as a result of the amendments removing targeted problems. Others have failed to meet legislative deadlines for the year. Of those remaining the following are likely the most crucial to follow.

AB 2351 (Eggman; D-Stockton) Targeted Tax on High Earners – Unfairly increases the personal income tax rate from 13.3% – which is already, by far, the highest income tax rate in the country – to 14.3% for one category of taxpayers (including some proprietors), who already pay half of California’s income taxes, forcing them to mitigate these costs through means that include reducing workforce, in order to provide more funding for higher education.

AB 3080 (Gonzalez Fletcher; D-San Diego) Ban on Settlement Agreements and Arbitration Agreements – Significantly expands employment litigation and increases costs for employers and employees by banning settlement agreements for labor and employment claims as well as arbitration agreements made as a condition of employment, which is likely preempted under the Federal Arbitration Act and will only delay the resolution of claims. Banning such agreements benefits the trial attorneys, not the employer or employee.

ACA 22 (McCarty; D-Sacramento) Middle Class Fiscal Relief Act – Unnecessarily increases California’s 8.84% corporate tax rate, already one of the highest in the nation, to 18.84%, which will encourage companies to leave the state and discourage companies from expanding or relocating here.

SB 993 (Hertzberg; D- Van Nuys) Tax on Services – Imposes a 3% tax on services purchased by businesses in California, with some exceptions, adding another layer of taxes onto California companies, raising costs, and putting them at a competitive disadvantage.

SB 1398 (Skinner; D-Berkeley) Increased Tax Rate – Threatens to significantly increase the corporate tax rate on publicly held corporations and financial institutions up to 15% according to the wages paid to employees in the United States, and threatens to increase that rate by 50% thereafter, if the corporation or institution reduces its workforce in the United States and simultaneously increases its contractors.

The 2018 list also tracks 2017 Carry-Over Bills that were started in 2017, and continue to be considered in the 2018 legislative session. More details and updates on all of the 2018 legislation can be tracked on the 2018 Job Killer Bills webpages.