BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 889| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED AB 889 Page 2 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. CONTINUED AB 889 Page 3 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 CONTINUED AB 889 Page 4 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 CONTINUED AB 889 Page 5 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) CONTINUED AB 889 Page 6 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 CONTINUED AB 889 Page 7 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 CONTINUED AB 889 Page 8 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. CONTINUED AB 889 Page 9 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 CONTINUED AB 889 Page 10 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 CONTINUED AB 889 Page 11 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. CONTINUED AB 889 Page 12 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 **** END **** CONTINUED