Governor Gavin Newsom vetoed the Protect Call Center Jobs Act of 2019 (A.B. 1677), which would have penalized California companies that move their call centers out of the country or out of the state.
Newsom vetoed the legislation on October 12, 2019, following appeals from the Insights Association and our California Chamber of Commerce coalition during and after the legislative process.
We opposed California A.B. 1677 because it could have impeded incoming customer satisfaction research calls and make business more difficult for some research firms.
As explained in our final request for a veto, on September 17, the coalition stated:
"California’s costly laws and regulations make it hard for companies to do business in this state. Instead of alleviating some of those burdensome regulations, AB 1677 adds to the problem and seeks to penalize these companies for leaving California by forcing any company who chooses to relocate a California call center to a foreign country to report the relocation to the Division of Industrial Relations (DIR) within 30 days. This reporting allows the DIR to post the relocation information on the internet for public review. Failure to timely report the relocation triggers a $10,000 fine for every day of violation in addition to potential liability under the Private Attorneys General Act (PAGA), thereby exposing businesses to significant statutory penalties, costs and litigation. Assuming the intent of AB 1677 is to discourage call centers from relocating outside of the state, we do not believe that public shaming is the proper method. Rather, legislation should be directed at encouraging businesses to stay in this state by alleviating some of the burdens that are forcing them to leave California."