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Saturday, March 7, 2026

Labor Committee Proposals Will Harm Small Employers - CBIA

The state legislature’s Labor and Public Employees Committee is reviewing a series of mandates that will have a devastating impact on small and mid-sized employers.

The proposals create new compliance standards, duplicative safety standards, increased litigation, and significant restrictions on routine business contractual procedures.

While many of the bills are recycled versions of unsuccessful proposals from previous legislative sessions, there are several new measures in the mix.

HB 5003 is portrayed as a “workforce development bill,” with sweeping provisions impacting several of the state’s largest employment hubs.

The bill makes several changes across a range of industry sectors, particularly the healthcare, cannabis, and service contracting industries.

It requires healthcare employers to indemnify employees for workplace assaults and provide full wage continuation without charging leave, while also mandating new electronic reporting of patient violence through the state health information exchange.

This will upend existing protections through the workers’ compensation system, potentially leading to significant cost and liability increases for hospitals and community health centers.

The bill expands the successor contractor law to numerous industries—including warehouses, residential complexes, hospitals, schools, and commercial buildings—requiring new contractors to retain prior employees for 90 days and imposing steep daily penalties for violations.

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