BILL ANALYSIS                                                                                                                                                                                                    Ó





                                                                  AB 889

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          GOVERNOR'S VETO
          AB 889 (Ammiano and V. Manuel Pérez)
          As Amended  August 24, 2012
          2/3 vote

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          |ASSEMBLY:  |49-28|(June 2, 2011)  |SENATE: |21-13|(August 29,    |
          |           |     |                |        |     |2012)          |
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          |ASSEMBLY:  |45-30|(August 30,     |        |     |               |
          |           |     |2012)           |        |     |               |
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           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 










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            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 










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            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 










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            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, 










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          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 










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               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 


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