BILL ANALYSIS
Senate Committee on Labor and Industrial Relations
Mark DeSaulnier, Chair
Date of Hearing: June 24, 2009 2009-2010 Regular
Session
Consultant: Alma Perez Fiscal:Yes
Urgency: No
Bill No: AB 381
Author: Block
Version: June 1, 2009
SUBJECT
Unemployment compensation disability benefits: academic
employees.
KEY ISSUE
Should the Legislature allow a community college district to
choose to allow certain of their employees to be covered by the
state disability insurance program (SDI), eliminating the
existing requirement that all must be covered if some are?
PURPOSE
To allow specified employees of a community college district the
opportunity to elect coverage under SDI independently of other
employees of the community college district.
ANALYSIS
Existing law requires private sector employers to provide State
Disability Insurance (SDI) coverage for their employees, while
public agencies (the state, cities, counties, school districts,
community college districts, and other local districts) are not
required to provide SDI coverage for employees. California's SDI
program is a partial wage-replacement insurance plan for
California workers that provides affordable, short-term benefits
to eligible workers for up to 52 weeks in the event that a
person suffers a non-occupational injury or illness that
prevents that person from working. SDI benefits range from $50
to $959 per week, depending upon earnings during a 12-month base
period. Paid Family Leave (PFL) is part of the SDI program and
replaces lost income to care for a sick relative or to bond with
a new child. The SDI programs are state-mandated, and funded
through employee payroll deductions. The SDI program is
administered through the Employment Development Department.
Under existing law , public agencies that elect to provide SDI
coverage must do so under statutory rules that include:
All of the eligible employees who are part of a labor
organization are parties to an election that is the result
of a negotiated agreement between the employer and the
recognized employee organization.
All of the eligible employees in one or more places of
business who are not part of a labor organization are
parties to an election requested by a written petition
signed by a majority of the eligible employees.
Existing law allows public entities, except school district and
community college districts, to elect to cover all of their
employees who are part of an appropriate unit, provided the
election is the result of a negotiated agreement between the
public agency and the recognized employee organization.
This Bill would allow community college districts to elect to
provide state disability insurance (SDI) coverage for certain of
their employees, as specified, but would stipulate that the
election would not be contingent upon coverage of other
employees of the community college district employer.
Specifically, this bill would allow a community college
district:
To elect to provide SDI coverage to all eligible
employees who are part of an employee organization
bargaining unit, as specified, but would not make the
election contingent upon coverage of other employees.
To elect to provide coverage to its management and
confidential employees and to its employees who are not
part of an appropriate unit, but would not make the
Hearing Date: June 24, 2009 AB 381
Consultant: Alma Perez Page 2
Senate Committee on Labor and Industrial Relations
election contingent upon coverage of other employees.
To elect to provide disability compensation coverage to
specified permanent, part-time, or temporary academic
employees that is not contingent upon coverage of other
academic employees. "Academic employee" is defined as a
person employed by a community college district in an
academic position.
COMMENTS
1. Need for this bill?
The SDI program provides partial wage-replacement insurance
for California workers that provides affordable, short-term
benefits to eligible workers in the event that a person
suffers a non-occupational injury or illness that prevents
that person from working. Existing law requires private
sector employers to provide SDI coverage for their employees,
while public agencies, including a community college district,
are not. Community college districts employ academic faculty
in both temporary part-time and permanent full-time
capacities.
Because of difference in sick leave, paid time off and other
personnel policies that might apply to workers in either of
these classifications, each set of workers might have
different perspectives on the need to opt in or out of the SDI
program. This legislation recognizes these differences and
would instead allow the different classification of employees
to choose whether or not to participate in the SDI program.
This bill would allow those employees who find value in the
cost to participate in the SDI program to do so, while at the
same time those who do not want to participate would not be
required to pay for a plan that they find no benefit in.
2. Proponent Arguments :
According to the author, even in a good economy a short-term
disability can be economically disastrous for a part-time
worker. The author argues that currently, California's
Hearing Date: June 24, 2009 AB 381
Consultant: Alma Perez Page 3
Senate Committee on Labor and Industrial Relations
part-time community college faculty lack adequate financial
protection in the event of a non-work related short-term
disability. Proponents argue that since public employers are
not required to provide SDI, part-time community college
faculty have only their accumulated leave, which can only be
used during an academic term in which they are employed, to
rely on in the event of an extended illness. To make matters
worse, proponents argue, if a faculty member is collecting
unemployment insurance and becomes ill and is unable to look
for work, he or she will become ineligible to continue to
receive unemployment benefits. However, if the part-time
faulty member participates in the SDI program, he or she would
be seamlessly transferred out of UI and into SDI.
Proponents of the measure argue that current law limits the
ability of employees within a bargaining unit to elect into
SDI, and when the district chooses to participate in SDI both
temporary and permanent full time faculty are required to
contribute. Proponents argue that since SDI is completely
employee paid, tenured faculty may feel that they do not have
need for the SDI plan considering they have, on average, 10
sick days per year, and many have access to a sick leave
donation bank. This bill would allow part-time faculty to
participate in SDI even if the tenured faculty of a bargaining
unit choose differently. Similarly, this bill would also
allow the full time faculty to elect into SDI, even if the
part-time faculty did not want to.
3. Opponent Arguments :
None received to date.
SUPPORT
Faculty Association of California Community Colleges (FACCC) -
Sponsor
American Federation of State, County and Municipal Employees
(AFSCME), AFL-CIO
California Federation of Teachers
California Labor Federation, AFL-CIO
OPPOSITION
Hearing Date: June 24, 2009 AB 381
Consultant: Alma Perez Page 4
Senate Committee on Labor and Industrial Relations
None received .
* * *
Hearing Date: June 24, 2009 AB 381
Consultant: Alma Perez Page 5
Senate Committee on Labor and Industrial Relations