Gov. Arnold Schwarzenegger upheld his tradition of rejecting “job-killer” bills by vetoing all six bills designated by the California Chamber of Commerce as such last week.

Schwarzenegger also signed into law a chamber-designated “job-creator” bill that will reinstate air quality permits for hundreds of construction projects in the L.A. region.

The six vetoes announced Oct. 11 continue Schwarzenegger’s tradition of rejecting bills with the job-killer label; since he took office, he has vetoed 53 out of 57 such bills.

“Schwarzenegger understands that California business cannot withstand additional regulation at a time when we are struggling with economic recovery,” said Allan Zaremberg, chief executive of the state chamber. “Allowing these job-killer bills to become law would have further hampered hiring and hurt our state’s competitiveness.”

The bills Schwarzenegger vetoed were:

– AB 2, which would have allowed lawsuits over health insurers’ decisions to rescind coverage;

– AB 793, which would have broadened the ability of employees to sue for discrimination;

– AB 943, which would have restricted the ability of employers to use credit reports in hiring decisions;

– AB 1404, which would have limited the amount of pollution offsets that businesses could use to meet their greenhouse gas emission reduction goals;

– SB 242, which would have imposed penalties on employers who failed to post signs or otherwise communicate with customers in additional languages; and

– SB 789, which would have made it easier for farm workers to gain union representation. Schwarzenegger vetoed this bill in early September.

On the other side of the ledger, Schwarzenegger signed into law SB 827, which as of Jan. 1 reinstates permits that had been granted for hundreds of construction projects in Los Angeles, Orange, Riverside and San Bernardino counties. The South Coast Air Quality Management District permits were frozen by a judge as the result of a lawsuit filed by environmental groups challenging the district’s awarding of emission reduction credits at below-market costs.

(It was previously reported in this column that the Legislature sent seven job-killer bills to Schwarzenegger. But only six passed the Legislature; at the last minute, one bill was held in the Senate Appropriations Committee. It can be moved to the Senate floor for a vote at any time the Senate is in session.)

Workers’ Comp Setbacks

Meanwhile, Schwarzenegger also signed into law two workers’ compensation-related bills that had been opposed by employers. (Neither made the chamber’s job-killer list.)

SB 186 takes away a major provision of the 2004 reforms that employers had sought. That provision stated that as of Dec. 31, 2009, employees would no longer be able to predesignate their own workers’ comp doctors outside of an employer’s network. Employers believe that worker-designated doctors are more likely to order more expensive treatment for workplace injuries, thus driving up claim costs. SB 186 extends the employee right to doctor designation indefinitely.

Schwarzenegger also signed AB 361, which prevents employers from denying payment for workers’ comp medical treatment that had been approved under previous insurance coverage.

To save on workers’ comp medical costs, many employers have switched to medical provider networks; some of those networks don’t cover some of the injury treatments that had been allowed by previous providers.

Higher Withholding

The state Employment Development Department is notifying employers this month of pending income tax withholding increases that must be made to employee paychecks.

The changes are the result of an accounting gimmick enacted by state elected officials during the summer to help address a multibillion-dollar budget gap. As of last week, state tax collections for the fiscal year starting July 1 are already running $1 billion behind estimates made in July.

Lawmakers and the governor boosted state income tax withholding rates by 10 percent for the months of November and December as a way to bring in more revenue to fill depleted coffers.

For example, if the state income tax withholding is currently $500 for a pay period on an employee’s regular wages, come Nov. 1, the withholding amount goes to $550.

This withholding boost does not represent a tax increase, merely a shifting of when the income tax is paid to the state. Most employees will either get a larger refund on their 2009 taxes next year or enclose smaller checks with their tax returns because of the higher withholding.

For employers that use outside payroll services, those services should make the changes to paychecks automatically. But those employers who do their own payrolls will have to make the changes themselves. They can check the Employment Development Department’s Web site at EDD.ca.gov for the latest withholding tables.

Staff reporter Howard Fine can be reached at [email protected] or at (323) 549-5225, ext. 227.