BILL ANALYSIS Ó AB 1908 Page 1 Date of Hearing: March 28, 2012 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Warren T. Furutani, Chair AB 1908 (Alejo) - As Introduced: February 22, 2012 SUBJECT : Classified employees: notice of layoff. SUMMARY : Increases, from 45 days to 60 days, the layoff notice requirement for classified school employees working in California's school and community college districts. EXISTING LAW : 1)Provides a framework for layoffs of school employees. For the following occupations, the statutory notice requirements listed are applicable: a) Classified school employees (K-14): 45 days notice prior to layoff for lack of work or lack of funds. This notification requirement does not apply to short-term employees. b) Teachers, certificated employees, (K-14): notice by March 15th. However, if no notice is given, the school district must continue to employ the person for another year. An exception to this notice exists when the cost of living adjustment is less than two percent and situations involving specified attendance declines. c) Credentialed administrators and supervisors, (K-12): notice by March 15th. However, if no notice is given, the school district must continue to employ the person for another year. An exception exists when the cost of living adjustment is less than two percent. d) Other Administrators and Senior Management of the classified service: 45 day notice. However, if no notice is given, they are deemed to be reemployed or reelected for the term of the same length and under the same terms, conditions, and compensation. e) All Community College Administrators: 6 months notice or notice by March 15th. However, if no notice is given, AB 1908 Page 2 the administrator is deemed reemployed for a term of the same length and all other terms and conditions remain unchanged. 2)School districts are authorized to lay off classified employees in the event of lack of funds or unforeseen causes without meeting the specified notice requirements. FISCAL EFFECT : Unknown. COMMENTS : According to the author, "AB 1908 seeks to address an inequity in the law with regard to layoff notices for school employees. Teachers and administrators are given significantly longer layoff notice, with the March 15th layoff notice requirement. This bill does not provide classified school employees (i.e. bus drivers, cafeteria workers, custodians) with the March 15th layoff notice, but simply provides them with two additional weeks to prepare for a layoff, extending the current layoff notice from 45 to 60 days. AB 1908 recognizes the economic conditions of California and the high unemployment rate and affords classified employees with additional time to prepare for their job loses." Supporters state, "The state's budget crisis has dramatically impacted classified school employees - 30,000 of whom have been laid off and the majority of those who remain being placed on some type of furlough. AB 1908 merely provides classified employees with an additional two weeks of planning time in the event of layoff. The additional notice in no way obligates school districts to employ classified employees for additional time, but rather simply ensures that they have a few more days to prepare for unforeseen job loss." Opponents state, "AB 1908 extends the written termination timeline from 45 days to 60 days. While this appears to not be a significant change, the unintended consequences for school districts will be significant. This change in the timeline will force school districts to have to over-notice their classified employees since we will have to issue the notice prior to the release of the state budget May Revision. Over-noticing has a tremendous negative impact on employee morale and causes employees to panic and districts still do not have any firm financial information to base these decisions on. The more time school districts have to make informed decisions, the better it is for everyone involved." AB 1908 Page 3 AB 290 (Firebaugh), Chapter 880, Statutes of 2003, required school and community college districts to provide classified school employees with 45 days notice of layoff and to required short-term employees to be given layoff notices before permanent classified employees are laid off. AB 2578 (Wesson) of 2000 would have required districts to give 60 days advance notice of layoff for lack of work when the termination date is other than June 30. The Governor vetoed the bill, and stated, in part, "I cannot support this measure because it would require school or community college districts to foresee their personnel needs 60 days in advance, which is not always possible. Many districts are not notified until the final weeks of the fiscal year of programs that will continue to be funded for the next fiscal year." REGISTERED SUPPORT / OPPOSITION : Support California School Employees Association (Sponsor) American Federation of State, County and Municipal Employees California Federation of Teachers California Labor Federation California Professional Firefighters Laborers' International Union of North America, Local 777 Service Employees International Union California Opposition Association of California School Administrators California Association of School Business Officials California School Boards Association Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957