BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1000
                                                                  Page  1

          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                  AB 1000 (Ma) - As Introduced:  February 27, 2009 

          Policy Committee:                              Labor and  
          Employment   Vote:                            4-2
                         Judiciary                            7-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY 

          This bill requires employers to provide paid sick days for  
          employees meeting certain criteria. Specifically, this bill:

          1)Provides that an employee who works in California for seven or  
            more days in a calendar year is entitled to paid sick days,  
            compensated at the some wage as the employee normally earns  
            during regular work hours.

          2)Specifies that paid sick days accrue at the rate of no less  
            than one hour for every 30 hours worked. Provides that an  
            employee would be entitled to use accrued sick days beginning  
            on the 90th calendar day of employment.

          3)Limits the use of paid sick days to 40 hours per year for  
            small businesses (10 or less employees) or 72 hours per year  
            for other businesses.

          4)Requires that sick leave be provided to an employee and/or the  
            employee's family member for the diagnosis, care, or treatment  
            of and existing health condition, and for victims of domestic  
            violence or sexual assault.

          5)Defines family member to include a child, parent, spouse,  
            registered domestic partner, grandparent, grandchild, sibling,  
            step child, or a legal ward. 

          6)Provides that the sick leave requirements specified in the  
            bill do not apply to an employee covered by a valid collective  
            bargaining agreement that includes paid sick days and  








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            arbitration procedures. Provides that the requirements do not  
            apply to employees in the construction industry covered by a  
            valid collective bargaining agreement that meets various  
            conditions but does not necessarily include sick leave.


           FISCAL EFFECT
           
          1)The Division of Labor Standards Enforcement within the  
            Department of Industrial Relations anticipates that it would  
            incur costs of $875,000 in 2009-10, $559,000 in 2010-11, and  
            $464,000 in 2011-12 and thereafter (special funds) associated  
            with rulemaking and ongoing investigation and enforcement of  
            complaints. 

          2)Major costs to state and local governments in California,  
            particularly for employee-related costs in-home supportive  
            services and child care programs. As an example, the accrued  
            sick leave would increase costs for IHSS by about $13 million  
            per year, which would be borne by a combination of federal,  
            state, and local funds.  

           COMMENTS  

           1)Background  . Existing California law provides for various forms  
            of unpaid and, in some circumstances, paid leave for  
            employees. Current law does not, however generally require  
            employers to provide paid sick leave. In 2006, San Francisco  
            voters approved Proposition F, the first law in the nation  
            that requires employers to provide sick leave. That measure is  
            enforced by the San Francisco Office of Labor Standards  
            Enforcement.

           2)Rationale  . The bill is intended to address the current  
            situation in which numerous Californians are not provided paid  
            sick days through their employer. The author asserts that the  
            bill is a win-win for both workers and employers, citing a  
            study that claims allowance of paid sick days can reduce  
            employer costs related to high turnover.
           
          3)Opponents  (numerous public and private employer associations)  
            claim that the ever-increasing burden of costly mandates on  
            employers can cumulatively result in lower wages, reducing  
            available health insurance, limiting training programs, and  
            even job loss or reduced work hours. They further assert that  








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            declining tax base leads to decreases in state revenues,  
            further job loss, and increased demand for unemployment  
            insurance.

           4)Prior legislation  . AB 2716 (Ma) of 2008 was identical to this  
            bill.  That bill was held in the Senate Appropriations  
            Committee.


           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081