BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 889|
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                                 THIRD READING


          Bill No:  AB 889
          Author:   Ammiano (D), et al.
          Amended:  8/22/12 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMM.  :  5-1, 7/6/11
          AYES:  Lieu, DeSaulnier, Leno, Padilla, Yee
          NOES:  Wyland
          NO VOTE RECORDED:  Runner

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/16/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton
           
          ASSEMBLY FLOOR  :  49-28, 6/2/11 - See last page for vote


           SUBJECT  :    Domestic work employees

           SOURCE  :     California Domestic Workers Coalition


           DIGEST  :    This bill, no later than January 1, 2014, the 
          Department of Industrial Relations (DIR) shall adopt 
          regulations governing the working conditions of domestic 
          work employees, as defined.  The regulations adopted 
          pursuant to this section shall provide for all of the 
          following:  (1) overtime compensation, (2) meal and rest 
          periods, and (3) uninterrupted sleep periods and 
          compensation for interruptions.  The DIR may apply the 
          provisions of Industrial Welfare Commission Wage Order 15 
          to domestic work employees.  In adopting regulations 
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          pursuant to this section, the DIR shall do all of the 
          following:  (1) study the economic impact of the 
          regulations, and (2) review and consider federal policies 
          regarding domestic work employees.

           ANALYSIS  :    Existing law regulates the wages, hours, and 
          working conditions of any man, woman, and minor employed in 
          any occupation, trade, or industry, whether compensation is 
          measured by time, piece, or otherwise, except for 
          individuals employed as outside salesmen and individuals 
          participating in specified national service programs. Under 
          existing law, the Industrial Welfare Commission within the 
          Department of Industrial Relations is authorized to adopt 
          rules, regulations, and orders to ensure that employers 
          comply with those provisions of law.

          This bill, no later than January 1, 2014, the Department of 
          Industrial Relations (DIR) shall adopt regulations 
          governing the working conditions of domestic work 
          employees, as defined.  The regulations adopted pursuant to 
          this section shall provide for all of the following:  (1) 
          overtime compensation, (2) meal and rest periods, and (3) 
          uninterrupted sleep periods and compensation for 
          interruptions.  The DIR may apply the provisions of 
          Industrial Welfare Commission Wage Order 15 to domestic 
          work employees.  In adopting regulations pursuant to this 
          section, the DIR shall do all of the following:  (1) study 
          the economic impact of the regulations, and (2) review and 
          consider federal policies regarding domestic work 
          employees.

           Comments
           
          Domestic workers have historically been exempted from laws 
          governing the rights afforded to other workers - decent 
          wages, a safe and healthy workplace health, workers 
          compensation and other labor protections.  Domestic workers 
          are among the most isolated and vulnerable workforce in the 
          state.  The unique nature of their work requires 
          protections to prevent abuse and mistreatment from 
          occurring behind closed doors, out of the public eye.  This 
          bill provides domestic workers with industry-specific 
          protections to use kitchen facilities and cook their own 
          food, and creates standards for sleep.

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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  Yes

           SUPPORT  :   (Verified  8/22/12)

          California Domestic Workers Coalition (source) 
          9to5, National Association of Working Women
          Access INC. 
          Alameda Labor council, AFL-CIO 
          Alliance of White Anti-Racists Everywhere - Los Angeles
          American Civil Liberties Union 
          American Federation of State, County and Municipal 
            Employees, AFL-CIO, Local 3299
          Asian Americans for Civil Rights and Equality
          Asian Communities for Reproductive Justice
          Asian Immigrant Women Advocates
          Asian Pacific American Legal Center
          Asian Pacific Environmental Network
          Asian Pacific Islander Equality - Northern California 
          Asian Pacific Islander Youth Promoting Advocacy and 
          Leadership
          Assembly District 13 San Francisco 
          Berkeley-East Bay Gray Panthers
          Black Alliance for Just Immigration
          California Alliance for Retired Americans
          California Coalition for Women Prisoners
          California Commission on the Status of Women
          California Communities United Institute 
          California Conference Board of the Amalgamated Transit 
          Union
          California Conference of Machinists
          California Domestic Worker Coalition
          California Immigrant Policy Center
          California Labor Federation
          California Labor Foundation 
          California National Organization for Women
          California Nurses Association 
          California Official Court Reporters Association
          California Partnership to end Domestic Violence 
          California Teamsters Public Affairs Council
          Canal Alliance
          Caring Hands Workers' Association 
          Causa Justa/Just Cause

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          Central American Resource Center San Francisco 
          Chinese Progressive Association 
          City and County of San Francisco 
          City of Oakland
          Clergy and Laity United for Economic Justice of Los Angeles 

          Coalition for Humane Immigrant Rights of Los Angeles
          Communities Actively Living Independent and Free
          Community Resources for Independent Living 
          Community United Against Violence
          Data Center
          East Bay Alliance for Sustainable Economy 
          Echo Park United Methodist Church
          Engineers and Scientists of California
          Equal Rights Advocates
          Filipino Advocates for Justice
          Filipino Community Center
          Filipino Migrant Center 
          Golden Gate University - Women's Employment Rights Clinic
          Hand in Hand: The Domestic Employers Association 
          Human Rights Commission
          Independent Living Services of Northern California 
          Institute of Popular Education of Southern California
          Interfaith Coalition for Immigrant Rights
          International Longshore and Warehouse Union
          Jewish Labor Committee
          Jobs with Justice San Francisco 
          Kehilla Community Synagogue
          Labor Project for Working Families
          Labor/Community Strategy Center
          Latino Policy Coalition
          Lawyers' Committee for Civil Rights of the San Francisco 
          Bay Area 
          Legal Services for Prisoners with Children
          Lil Tokyo Fraternal Workers Association
          Long Beach Coalition for Good Jobs and a Healthy Community
          Maintenance Cooperation Trust Fund
          MEChA de Stanford
          Mexican American Legal Defense and Educational Fund
          Mission Neighborhood Health Center
          Mujeres Unidas y Activas
          National Alliance for Filipino Concerns, Northern 
          California 
          National Center for Lesbian Rights 

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          National Domestic Workers Alliance
          National Employment Law Project
          National Lawyers Guild Labor and Employment Committee  
          National Nurses Organizing Committee
          National Union of Healthcare Workers
          Network in Solidarity with the People of Guatemala
          Office and Professional Employees Local 3
          Organizacion en California de Lideres Campesinas, Inc.
          People Organized to Win Employment Rights 
          Pilipino Workers Center of Southern California
          Planning for Elders
          Professional and Technical Engineers, Local 21
          Progressive Jewish Alliance and Jewish Funds for Justice 
          Rosewood United Methodist Church
          San Francisco Board of Supervisors
          San Francisco Community College Federation of Teachers
          San Francisco Democratic Women in Action
          San Francisco Gray Panthers 
          San Francisco Labor Council
          San Francisco Living Wage Coalition
          San Francisco Youth Commission
          Senior Action Network
          Service Employees International Union 
          Service Employees International Union - Local United Long 
            Term Care Workers 
          Service Employees International Union - United Healthcare 
          Workers West 
          Services, Immigrant Rights and Education Network
          Silicon Valley Independent Living Center
          Stanford Labor Action Coalition
          The Women's Foundation of California
          Union Salvadorena de Estudiantes Universitarios
          UNITE HERE!
          United Educators of San Francisco
          United Food and Commercial Workers - Western States 
          Conference
          United Healthcare Workers
          United Long Term Care Workers 
          Urban Habitat
          Utility Workers Union of America, Local 132
          Women in Transition Re-entry Project Inc.
          Worksafe, Inc.

           OPPOSITION  :    (Verified  8/22/12)

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          AARP
          Accredited Nursing Care
          Agility Health
          Amada Home Care
          Association of Premier Nanny Agencies 
          At Home Care Solutions
          Aunt Ann's Homecare
          Aunt Ann's In House Staffing Agency 
          Bright Star Healthcare 
          California Association for Health Services at Home 
          California Chamber of Commerce
          California Foundation for Independent Living Centers
          California Supported Living Network
          Care to Stay Home
          Civil Justice Associations of California
          ComForcare Senior Services 
          Comfort Keepers 
          Competent Care Home Health Nursing 
          Craig Cares, Roseville
          Crunch Care 
          Dedicated Domestics, Nannies, Caregivers and Household 
          Staff 
          Desert Arc
          DialMED Home Care 
          Disability Rights California
          Disability Rights Education and Defense Fund 
          Elder Care Guides
          Help United 
          Help Unlimited
          Help Unlimited HomeCare
          Heritage Senior Care Inc. 
          Hillendale Home Care
          Hillside Enterprises
          Hired Hands Inc. Homecare
          Home and Health Care Management 
          Home Instead 
          Home Professionals
          Home Sweet Home Care of San Francisco 
          Homecare California
          Homecare Consultants Unlimited, Inc. 
          Homecare Specialists
          Independent Living Resource Center San Francisco 
          Independent Living Services of Northern California 

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          In-House Staffing
          Innovative Healthcare Consultants, Inc. 
          Interim HomeStyle Services, Grass Valley 
          Kaweah Delta Home Care Services
          La Jolla Nurses Homecare
          Love to Live
          LWF Home Care Inc.
          Matched CareGivers 
          Medical Home Care Professionals 
          National Private Duty Association, Northern California 
          Chapter 
          Northern and Southern California Chapters of the National 
            Private Duty Association 
          Nursing and Rehab at Home
          Option One
          Oxford Services
          PFC Information Services, Inc.
          Pioneer Home Health Care
          Rent-a-Parent
          Right at Home 
          Rx Staffing and Home Care, Sacramento 
          Select Homecare
          SENCARE Inc. 
          Senior Helpers 
          Silicon Valley Independent Living Center
          Southwest Health Care Services, Inc.
          St. Joseph Health System Home Health Agency
          Stanford Park Nannies
          Synergy Homecare, San Diego
          The Arc and United Cerebral Policy in California 
          Town and Country Resources
          United Cerebral Palsy
          Visiting Angels 
          Westside Nannies

           ARGUMENTS IN SUPPORT :    According to the author's office, 
          in California, there are around 200,000 domestic workers 
          who serve as housekeepers, nannies, and caregivers in 
          private homes.  Domestic workers are primarily immigrant 
          women who work in private households in order to provide 
          for their own families as the primary income earner.  The 
          author's office argues that the role of domestic workers is 
          essential to California as it enables others to participate 
          in the workforce.  Without these domestic workers our 

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          economy would suffer and many Californians would be forced 
          to forgo their own jobs to address their household needs.  
          However, the author's office contends, despite the 
          importance of their work, domestic workers have 
          historically received wages well below the poverty line and 
          continue to be excluded from some of the most fundamental 
          labor protections other Californian workers enjoy. 

          Proponents argue that current laws and exclusions are 
          complex, leaving employers and workers without any clear 
          guidelines.  The author's office notes that domestic 
          workers are among the most isolated and vulnerable 
          workforce in the state.  The unique nature of their work 
          requires protections to prevent abuse and mistreatment from 
          occurring behind closed doors, out of the public eye.  
          Therefore, the author's office argues, this bill provides 
          domestic workers with industry-specific protections to use 
          kitchen facilities and cook their own food, and creates 
          standards for sleep, meal and rest periods, overtime and 
          paid vacations.  Even domestic workers employed by agencies 
          labor in individual homes and deserve equal rights and 
          labor protections.  

          Similarly, proponents argue that this bill seeks to provide 
          industry-wide standards so that they can provide uniform 
          quality care to the individuals and homes with which they 
          are entrusted.  They believe this uniformity will increase 
          the quality of care and standardize the industry.  Finally, 
          proponents state that domestic workers are the bedrock of 
          our society - they do the work that makes all other work 
          possible.  This bill will not only protect this significant 
          and valuable workforce, but also will invest in the 
          wellbeing of Californian's families and homes.

           ARGUMENTS IN OPPOSITION  :    According to opponents, 
          although the bill has been significantly amended, there are 
          still portions of this bill that imposes irrational and 
          impractical laws on working parents who hire babysitters, 
          nannies or caregivers for their elderly parents.  According 
          to opponents, while the state currently regulates such 
          matters as minimum wage, overtime and meal and rest 
          periods, this bill regulates labor and employment issues 
          that have historically, and properly, been left to the 
          employer and employee to negotiate.  

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          Opponents are specifically concerned with the following: 

          1. Meal and Rest Periods: 

             Opponents argue that currently, Wage Order 15 
             appropriately exempts employers of babysitters and elder 
             care workers from meal/rest and flex time requirements.  
             They argue that in 2001, the Industrial Wage Commission 
             recognized the unique nature of baby sitting and elder 
             care and rightly concluded that meal and rest breaks 
             cannot be safely applied to these professions.  
             According to opponents, this bill supersedes Wage Order 
             15, by requiring meal and rest breaks relieved of all 
             duty, so if taken while a child or sick elderly person 
             is napping, the employer would be in violation of the 
             law if the child or sick elderly person awakens and the 
             caregiver attends to them during their break.

          2. Overtime:

             Opponents representing the disabled community are 
             concerned that changing the current system would result 
             in disruptive shift changes.  Service providers could 
             not afford to pay overtime for periods beyond eight 
             hours.  The solution would be a required shift change - 
             in the middle of the night.  In other words, they argue, 
             a person would go to sleep with one support staff and 
             wake up with another - a change that is both disruptive 
             and unsettling for many vulnerable individuals.  
             Additionally, they argue that many low-income people 
             with disabilities and their families, who hire 
             attendants, might have no choice but to either look for 
             more restrictive and expensive institutions or join the 
             underground economy and look for whatever caregivers 
             they can outside the law.  Opponents suggest an 
             exemption for third party employers. 

          3. Litigation and Right to Sue Working Parents:

             Under this bill, these domestic work employers will be 
             subject to the threat of litigation for any alleged 
             violation, including statutory penalties, attorney's 
             fees, and expert witness fees.  Opponents argue that 
             these burdens will potentially force unlawful conduct by 

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             individuals who simply cannot afford to satisfy the wage 
             and hour obligations required. 
             Additionally, opponents are concerned that this bill 
             creates a private right of action for violation of this 
             bill, a protection that no other class of workers - from 
             agricultural laborers to garment manufacturers - has.  
             They argue that working parents who hire a babysitter or 
             elder care giver for a Friday night dinner and a movie 
             could be vulnerable to thousands of dollars in legal 
             fees and punitive damages.   

          4, Paid Vacation:

             This bill requires domestic work employers to provide 
             paid vacation to employees, a benefit that private 
             sector employers can unilaterally decide to offer or 
             not, based upon the cost involved and their ability to 
             do so.  However, opponents argue, this bill usurps an 
             employer's discretion on this issue and force them to 
             provide such benefits despite the cost or detrimental 
             impact it may have on the business's and/or individual 
             homeowner's ability to survive.  

          5. Workers' Compensation:

             According to opponents, the workers' compensation 
             provisions in the bill eliminate a very narrow exemption 
             in existing law applicable when a person has worked less 
             than 52 hours, or earned less than $100, in the 90 days 
             preceding the date of injury.  Persons who employ 
             someone this occasionally do not think of themselves as 
             employers and are not likely to purchase a workers' 
             compensation insurance policy.  Opponents argue that 
             under this bill, if they do not do so, they can be sued 
             with a presumption that they negligently caused the 
             injury, and their property can be attached to secure the 
             payment of compensation if they do not meet the burden 
             of proving that the injury was caused by something other 
             than work as their domestic employee. 

          6. Underground Economy:

             Opponents also argue that if the cost of home care is 
             drastically increased, the price difference between 

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             legitimate home care companies and the underground 
             option will widen and the underground economy will 
             dramatically grow, at a detriment to all stakeholders 
             involved.  They argue that the underground economy has 
             no oversight, taxes are not paid, liability is not 
             covered, and it often leads to one side taking advantage 
             of the other, financially, physically and/or 
             emotionally.   

          7. Impossible to Implement: 

             Opponents argue that this bill is almost impossible to 
             implement in a reasonable way as working parents would 
             be forced to (1) hire a second babysitter or elder 
             caregiver to fill in for the meal and rest breaks, which 
             they argue is difficult since most parents could not 
             afford to hire a second nanny, nor is it likely to find 
             someone willing to work only 1 hour per day to fill in 
             during the meal and rest breaks; (2) fire their nanny or 
             elder caregiver and place their child or senior in 
             institutional daycare.  Opponents argue that many day 
             care centers have years-long waiting lists, and for 
             elderly Californians that problem will only be 
             exacerbated by the widespread closure of Adult Day 
             Health Care centers.  Moreover, opponents argue, the 
             care of special needs children and sick elders is more 
             appropriate in the home setting rather than a setting 
             with less than one-to-one care; (3) fire their nanny or 
             elder caregiver, and have one of the working adults quit 
             their job to care for their child or sick relatives, 
             thereby completely eliminating one job and removing 
             another productive worker from the paid workforce.  

          Overall, opponents argue that this bill significantly 
          increases the cost of home care for seniors, people with 
          disabilities, and other frail Californians, and would 
          further strengthen an already dangerously large underground 
          economy.  Opponents believe that this bill is simply 
          unworkable and irrational.  According to opponents, forcing 
          working families to choose between complying with 
          unreasonable laws and providing the best care for their 
          children and elderly parents is unconscionable.  
           


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           ASSEMBLY FLOOR  :  49-28, 6/2/11
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, 
            Furutani, Galgiani, Gatto, Gordon, Hayashi, Roger 
            Hernández, Hill, Hueso, Huffman, Lara, Bonnie Lowenthal, 
            Ma, Mendoza, Mitchell, Monning, Pan, Perea, V. Manuel 
            Pérez, Portantino, Skinner, Solorio, Swanson, Torres, 
            Wieckowski, Williams, John A. Pérez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Fletcher, Beth Gaines, Garrick, Grove, Hagman, Halderman, 
            Harkey, Huber, Jeffries, Jones, Knight, Logue, Mansoor, 
            Miller, Morrell, Nestande, Nielsen, Norby, Olsen, Silva, 
            Smyth, Valadao, Wagner
          NO VOTE RECORDED:  Gorell, Hall, Yamada


          PQ:k  8/22/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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