BILL ANALYSIS Ó AB 889 Page 1 GOVERNOR'S VETO AB 889 (Ammiano and V. Manuel Pérez) As Amended August 24, 2012 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: |49-28|(June 2, 2011) |SENATE: |21-13|(August 29, | | | | | | |2012) | ----------------------------------------------------------------- ----------------------------------------------------------------- |ASSEMBLY: |45-30|(August 30, | | | | | | |2012) | | | | ----------------------------------------------------------------- Original Committee Reference: L. & E. SUMMARY : Requires the Department of Industrial Relations (DIR) to adopt regulations governing the working conditions of domestic work employees, as specified. The Senate amendments delete the contents of the bill and instead: 1)Require DIR, not later than January 1, 2014, to adopt regulations governing the working conditions of "domestic work employees." 2)Define "domestic work" to mean services related to care of persons in private households or maintenance of private households or their premises, including childcare providers, caregivers of sick, convalescing, or elderly persons, house cleaners, housekeepers, maids and other household occupations. 3)Define "domestic work employee" to mean an individual who performs domestic work and includes live-in domestic work employees and personal attendants, but does not include specified individuals. 4)Provide that the regulations adopted by DIR shall provide for AB 889 Page 2 all of the following: a) Overtime compensation; b) Meal and rest periods; and, c) Uninterrupted sleep periods and compensation for interruptions. 5)Specify that DIR may apply the provisions of Industrial Welfare Commission Wage Order 15 to domestic work employees. 6)Provide that in adopting the regulations, DIR shall do all of the following: a) Study the economic impact of the regulation; and, b) Review and consider federal policies regarding domestic work employees. 7)Make related legislative findings and declarations. AS PASSED BY THE ASSEMBLY , this bill: 1)Defined "domestic work" to mean services related to the care of persons in private households or maintenance of private households or their premises. 2)Defined "domestic work employee" as an individual who performs domestic work (including live-in domestic work employees and personal attendants). The term does not include In-Home Supportive Services program employees, specified family members, or minor babysitters. 3)Specified that "domestic work employee" does not include a person employed by a licensed health facility, as specified. 4)Specified that "domestic work employee" does not include a person who is employed or contracts with an organization AB 889 Page 3 vendored or contracted through a regional center or the Department of Developmental Services, as specified. 5)Defined a "domestic work employer" as a person who (including through the services of a third-party employer) employs or exercises control over the wages, hours or working conditions of a domestic work employee. 6)Specified that a "domestic work employer" does not include a domestic referral agency, as specified. 7)Established specific employment rights for domestic work employees, including the following: a) A domestic work employee shall be entitled to overtime after eight hours in a workday or 40 hours in a workweek; b) A domestic work employee who is required to be on duty for 24 consecutive hours or more shall have a minimum of eight consecutive hours of uninterrupted sleep except in an emergency; c) A live-in domestic work employee shall not be required to work more than five days in any one workweek without a day off; d) Live-in domestic work employees and those who work for more than 24 consecutive hours shall be provided sleeping accommodations that are adequate, decent and sanitary; e) A domestic work employee is entitled to meal and rest periods, as specified; f) A domestic work employer shall permit a domestic work employee who works five hours or more to choose the food he or she eats and to prepare his or her own meals; and, g) A domestic work employee shall accrue paid vacation benefits as specified. 8)Specified certain penalties and remedial provisions, and AB 889 Page 4 provides for a private right of action for enforcement, of the aforementioned rights. 9)Eliminated the current requirement that domestic workers must work at least 52 hours and earn more than $100 in the previous 90 days to be eligible for worker's compensation coverage. 10)Made other related and conforming changes. 11)Made related legislative findings and declarations. FISCAL EFFECT : According to the Senate Appropriations Committee, this bill will result in estimated annual enforcement costs of $231,000 to $770,000 to the Labor Enforcement and Compliance Fund within the Department of Industrial Relations. COMMENTS : As introduced, this bill proposed to enact the "Domestic Work Employee Equality, Fairness and Dignity Act." According to the author, 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 role of domestic workers is essential to California as it enables others to participate in the workforce. Without these domestic workers many Californians would be forced to forgo their own jobs to address their household needs, the result being that the well-being of many California families and the economy as a whole would suffer. However, the author stated that, 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. Domestic workers have historically been exempted from laws governing the rights afforded to other workers - decent wages, a safe and healthy workplace, workers' compensation and other labor protections. The California Association for Health Services at Home (CAHSAH) and others strongly opposed the introduced version of this bill, AB 889 Page 5 arguing that it would have significantly increased the cost of home care for seniors, people with disabilities, and other frail Californians, and would further strengthen an already dangerously large underground economy. The Senate amendments delete the original contents of the bill and instead require DIR to adopt regulations governing the working conditions of domestic work employees, including providing for overtime compensation, meal and rest periods, and uninterrupted sleep periods, as specified. GOVERNOR'S VETO MESSAGE : Domestic workers work in the homes of ill, elderly or disabled people. They often share duties and responsibilities with the family and friends of the patient-employer. Those employed in this noble endeavor, like anyone who works for a living, deserve fair pay and safe working conditions. Seeking to improve the circumstances of these workers however, raises a number of unanswered questions. What will be the economic and human impact on the disabled or elderly person and their family of requiring overtime, rest and meal periods for attendants who provide 24 hour care? What would be the additional costs and what is the financial capacity of those taking care of loved ones in the last years of life? Will it increase costs to the point of forcing people out of their homes and into licensed institutions? Will there be fewer jobs for domestic workers? Will the available jobs be for fewer hours? Will they be less flexible? What will be the impact of the looming federal policies in this area? How would the state actually enforce the new work rules in the privacy of people's homes? The bill calls for these questions to be studied by the state Department of Industrial Relations and for the AB 889 Page 6 department to simultaneously issue new regulations to provide overtime, meal, rest break and sleep periods for domestic workers. In the face of consequences both unknown and unintended, I find it more prudent to do the studies before considering an untested legal regime for those that work in our homes. Finally, a drafting error leaves most In Home Supportive Service (IHSS) workers subject to this measure - - resulting in costs to the state of over $200 million per year. This could require cuts in wages, reduced hours of care and other reductions to those served by IHSS workers. Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091 FN: 0005943