California Governor signs payroll bill to preserve entertainment industry jobs

California Governor Jerry Brown recently ratified legislation to let production companies hire payroll companies.

The bill, which was unopposed in both the House and the Senate, allows production companies to engage in human resource outsourcing with regard to taxpaying, union dues, insurance and worker compensation. It indefinitely extends legislation set to expire in 2012 that let payroll firms act as employers of record to companies handling these responsibilities, Reuters explains.

The passage of the legislation addresses problems faced by employees, tax collectors and healthcare providers after production companies - which often only exist for the duration of a project - are dissolved.

"The entertainment industry is a source of so many jobs for my constituents, the state as a whole, and other industries that depend on filming occurring in California," said Assemblyman Mike Gatto, who sponsored the bill. "When we can easily change the law or regulations to preserve good jobs, it's the right thing to do."

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