BILL ANALYSIS                                                                                                                                                                                                    �






                 Senate Committee on Labor and Industrial Relations
                              William W. Monning, Chair

          Date of Hearing: June 26, 2013               2013-2014 Regular  
          Session                              
          Consultant: Alma Perez                       Fiscal:Yes
                                                       Urgency: No
          
                                   Bill No: AB 218
                                  Author: Dickinson
                        As Introduced/Amended: May 24, 2013 
          

                                       SUBJECT
          
                     Employment applications: criminal history 


                                      KEY ISSUE

          Should the Legislature prohibit a state or local agency from  
          asking an applicant for employment to disclose information  
          concerning a criminal conviction until the agency has determined  
          that he/she meets the minimum employment qualifications for the  
          job? 


                                      ANALYSIS
          
           Existing law  prohibits both public and private employers from  
          asking an applicant for employment to disclose, either in  
          writing or verbally, any information concerning an arrest or  
          detention that did not result in a conviction.  (Labor Code  
          �432.7)   Among other things, this prohibition in existing law  
          specifies that:  

             1)   As used for this purpose, a conviction includes a plea,  
               verdict, or finding of guilt regardless of whether a  
               sentence is imposed by the court. 

             2)   Nothing prohibits a government agency employing a peace  
               officer, or a health facility hiring for a position with  
               access to patients and/or drugs and medications, from  
               asking for arrest information, as specified. 

             3)   A violation of this prohibition by a prospective  









               employer allows the applicant to bring an action to recover  
               from that person damages, as specified. Intentional  
               violations are considered a misdemeanor punishable by a  
               fine not to exceed five hundred dollars ($500).  [Labor  
               Code �432.7(c)]

           Existing law, with regards to legal employment practices, also  
          provides the following: 

                  Protects employees, both prospective and current,  
               against employment discrimination when it involves unfair  
               treatment because of a person's race, color, religion, sex,  
               national origin, age, disability or genetic information.   
               (Government Code �12940)

                 Prohibits employers from discriminating, discharging or  
               refusing to hire an employee based on an employee's lawful  
               conduct during nonworking hours away from the employer's  
               premises. (Labor Code �96 & 98.6) 

                 Prohibits an employer from requiring or requesting an  
               employee or applicant for employment to disclose a username  
               or password for the purpose of accessing personal social  
               media content, as specified.  (Labor Code �980)  

                 Restricts the use, with some exceptions, of credit  
               information for employment purposes. (Labor Code �1024.5)  

                 Prohibits employers from requiring applicants to submit  
               to polygraph, lie detector, or similar tests as a condition  
               of employment. (Labor Code �432.2)
           

          This Bill  would require that state and local agencies determine  
          a job applicant's minimum qualifications before obtaining and  
          considering information regarding the applicant's conviction  
          history on an employment application.  

          Specifically, this bill would:  

             1)   Commencing July 1, 2014, prohibit a state or local  
               agency from asking an applicant for employment to disclose,  
          Hearing Date:  June 26, 2013                             AB 218  
          Consultant: Alma Perez                                   Page 2

          Senate Committee on Labor and Industrial Relations 
          








               orally or in writing, information concerning the conviction  
               history of the applicant until the agency has determined  
               that he/she meets the minimum employment qualifications, as  
               stated in any notice issued for the position.

             2)   Exempt from this prohibition, a position for which a  
               state or local agency is otherwise required by law to  
               conduct a conviction history background check, any position  
               within a criminal justice agency, as specified, and any  
               individual working on a temporary or permanent basis for a  
               criminal justice agency on a contract basis or on loan from  
               another governmental entity.

             3)   Specify that this section shall not be construed to  
               prevent a state or local agency from conducting a  
               conviction history background check after complying with  
               the provisions above.

             4)   Establish several findings and declarations in support  
               of this policy.



                                      COMMENTS

          1.  Criminal Background Checks: 

            The U.S. Equal Employment Opportunity Commission (EEOC) is  
            responsible for enforcing federal laws that make it illegal to  
            discriminate against a job applicant or an employee because of  
            the person's race, color, religion, sex (including pregnancy),  
            national origin, age (40 or older), disability or genetic  
            information.  In April 2012, the EEOC issued its "Enforcement  
            Guidance on the Consideration of Arrest and Conviction Records  
            in Employment Decisions," with the purpose of consolidating  
            and updating EEOC's guidance documents regarding the use of  
            arrest or conviction records in employment decisions.  An  
            employer's use of an individual's criminal history in making  
            employment decisions may, in some instances, violate the  
            prohibition against employment discrimination. According to  
            the EEOC, national data supports a finding that criminal  
            record exclusions have a disparate impact based on race and  
          Hearing Date:  June 26, 2013                             AB 218  
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            national origin.  

            The EEOC's guidance makes a clear distinction between arrest  
            and conviction records. According to the EEOC, the fact of an  
            arrest does not establish that criminal conduct has occurred,  
            and an exclusion based on an arrest, in itself, is not job  
            related and consistent with business necessity.  In contrast,  
            a conviction record will usually serve as sufficient evidence  
            that a person engaged in particular conduct.  However, an  
            employer's consideration of a conviction history may pass  
            muster if an individualized assessment is made taking into  
            account whether the conviction is job-related and the time  
            passed since the conviction. An employer may risk violating  
            federal law if he/she cannot articulate an objective and  
            well-supported reason for why the use of a criminal record to  
            disqualify an applicant is related to the functions of the  
            job. 

            According to EEOC, "As a best practice, and consistent with  
            applicable laws, the Commission recommends that employers not  
            ask about convictions on job applications and that, if and  
            when they make such inquiries, the inquiries be limited to  
            convictions for which exclusion would be job related for the  
            position in question and consistent with business necessity."  
            (EEOC Enforcement Guidance, V.B.3. Convictions) 

          2.  Need for this bill?

            Existing law prohibits both public and private employers from  
            asking an applicant for employment to disclose, either in  
            writing or verbally, any information concerning an arrest or  
            detention that did not result in a conviction.  However, even  
            with this protection in place, it appears that many applicants  
            continue to face discrimination when applying for a job.  The  
            use of criminal background checks as a tool for making hiring  
            decisions has grown dramatically in recent years.  According  
            to a survey conducted by the Society for Human Resources  
            Management, the largest association devoted to human resource  
            management, 92 percent of their members reported performing  
            criminal background checks on some or all of their job  
            candidates. Of these organizations, 12 percent reported never  
            allowing job candidates the opportunity to explain the results  
          Hearing Date:  June 26, 2013                             AB 218 
          Consultant: Alma Perez                                   Page 4

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            of their criminal background check. [Background Checking:  
            Conducting Criminal Background Checks (Jan. 22, 2010)]  

            The author of the bill also cites a March 2011 report by the  
            National Employment Law Project (NELP), titled "65 Million  
            Need Not Apply: The Case for Reforming Criminal Background  
            Checks for Employment," which found that an estimated 65  
            million U.S. adults who have criminal records often confront  
            barriers that prevent even the most qualified from securing  
            employment.  According to the report, across the nation there  
            is a consistent theme: people with criminal records "need not  
            apply" for available jobs.  Employers that adopt these and  
            other blanket exclusions fail to take into account critical  
            information, including the nature of an offense, the age of  
            the offense, or even its relationship to the job.  

            This bill would prohibit a state or local agency from asking  
            an applicant for employment to disclose information concerning  
            a criminal conviction until the agency has determined that  
            he/she meets the minimum employment qualifications for the job  
            in order to avoid inappropriately excluding qualified job  
            seekers.  The bill seeks to affect only when, not whether,  
            employers may consider criminal conviction history for  
            employment purposes.  

          3.  Similar Efforts in Other States and at the Local Level in CA  :
            
            According the National Employment Law Project, the policy of  
            AB 218 is one that has been tried and tested as this bill  
            follows the lead of six states and over 40 U.S. cities and  
            counties that have removed the conviction history inquiry from  
            initial job applications in public employment and instead  
            delayed it until the later stages of hiring.  The author  
            particularly notes that among these are the cities of East  
            Palo Alto, Berkeley, Alameda County, San Francisco City and  
            County, City of Oakland and the City of Richmond.  Among the  
            states with similar laws are Colorado, Connecticut, Hawaii,  
            Massachusetts, Minnesota, and New Mexico. 

          4.  Proponent Arguments  :
            
            According to the author, an estimated one in four adult  
          Hearing Date:  June 26, 2013                            AB 218  
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            Californians has an arrest or conviction record on file with  
            the state, creating major, unnecessary employment barriers.   
            Because criminal background checks disproportionately deny  
            employment to large numbers of people of color, the U.S. Equal  
            Employment Opportunity Commission (EEOC) requires employers to  
            establish a strong nexus between an individual's conviction  
            history and the specific responsibilities of the job.   
            Unfortunately, proponents argue, old or minor records, such as  
            nonviolent drug offenses, are impeding qualified job  
            applicants' ability to find employment. They argue that the  
            mere existence of a "box" on a job application that asks if  
            the applicant has a criminal history, leads employers to  
            dismiss applicants at the outset even where an individual  
            possesses the skills, work ethic, and qualifications to do the  
            job.  

            Further, they argue that the discrimination experienced by  
            individuals with old criminal convictions is well documented,  
            and a wide body of research demonstrates that the consequences  
            of a criminal conviction on opportunities for employment are  
            particularly severe.  For example, they cite a study of hiring  
            practices which shows that in nearly 50% of cases, employers  
            were unwilling to consider equally qualified applicants on the  
            basis of their criminal record.  They argue that people of  
            color are especially hit by criminal background checks, and  
            are even less likely to be considered for employment than  
            white applicants with criminal convictions. 

            According to the author, realignment of California's criminal  
            justice system seeks to produce budgetary savings by reducing  
            recidivism and promoting rehabilitation.  However, the author  
            believes, employment of eligible people with a conviction  
            history is key to the success of realignment at the local  
            level, as studies have shown that stable employment  
            significantly lowers recidivism and promotes public safety.   
            This bill would remove any inquiry into a conviction history  
            on a job application and delay any background check until the  
            employer has determined that the applicant's qualifications  
            meet the job requirements.  The author believes this bill  
            would make government hiring practices more consistent with  
            realignment and with the EEOC's guidelines.

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          5.  Opponent Arguments  :

            According to opponents of the measure, since the Governor's  
            prison realignment bill, many lower level offenders are being  
            released into the public and entering the job market and  
            although many are not opposed to hiring low level offenders,  
            what they do believe is that these decisions should be left to  
            local jurisdictions and not subverted by state-led  
            requirements.  This bill prohibits local governments from  
            inquiring about criminal history on initial employment  
            applications.  Opponents argue that many local agencies will  
            be wasting time and limited resources screening initial  
            applicants for minimum eligibility that most certainly will be  
            rejected once an applicant's criminal history is disclosed.  

            Opponents understand that the primary goal of the bill is to  
            create more job opportunities for individuals with criminal  
            convictions; however, they believe the bill does not ensure  
            that it will accomplish that objective.  Instead, they argue,  
            this bill would create unnecessary delays and increased costs  
            in hiring procedures.  They also note that some counties have  
            already initiated similar efforts, but argue that these  
            policies have been tailored to best serve their needs and were  
            done without a legislative mandate.  Overall, opponents  
            believe this bill would take away local discretion over hiring  
            practices that should be dealt with at the local level.  

            The CA Special Districts Association appreciates the recent  
            amendments taken to delay implementation, however, they would  
            like to see additional amendments that, 1) authorize agencies  
            to adopt policies that permit criminal conviction information  
            requests for relevant prior convictions earlier in the hiring  
            process for certain positions, as specified by agency  
            protocol; and 2) provide an exemption for small local  
            agencies. 

          6.  Double Referral  :

            This bill has been double referred and, if approved by this  
            committee, it will be sent to the Senate Judiciary Committee  
            for a hearing.

          Hearing Date:  June 26, 2013                             AB 218  
          Consultant: Alma Perez                                   Page 7

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          7.  Prior Legislation  :

            AB 870 (Jones-Sawyer) of 2013:  Held in Assembly  
            Appropriations 
            AB 870 would prohibit the state from contracting with a person  
            or entity that asks an applicant for employment to disclose,  
            orally or in writing, information concerning the conviction  
            history of the applicant, including an inquiry about  
            conviction history on an employment application, until the  
            employer has determined that the applicant meets the minimum  
            employment qualifications, as stated in any notice issued for  
            the position.



            AB 1831 (Dickinson) of 2012:  Held in Senate Governance and  
            Finance  
            AB 1831 is almost identical to this bill and would have  
            prohibit a county or city from inquiring about or considering  
            a job applicant's criminal background history until after  
            determining an applicant's qualifications.  However, AB 1831  
            provisions were placed in the Government Code. 



                                       SUPPORT
          
          Legal Services for Prisoners with Children - Co-Sponsor
          National Employment Law Project - Co-Sponsor
          PICO California - Co-Sponsor 
          A New Way of Life Reentry Project
          Alameda County Board of Supervisors
          All of Us or None - Sacramento Chapter
          American Civil Liberties Union of California
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          Asian & Pacific Islanders California Action Network
          Bayview Baptist Church
          California Attorneys for Criminal Justice
          California Catholic Conference of Bishops
          California Coalition for Women Prisoners
          California Communities United Institute
          Hearing Date:  June 26, 2013                             AB 218  
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          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Correctional Peace Officers Association (CCPOA)
          California Drug Counseling, Inc.
          California Employment Lawyers Association
          California Labor federation, AFL-CIO
          California Partnership
          California Prison Focus
          California Public Defenders Association
          California State Conference of the National Association for the  
          Advancement of Colored People
          California Teamsters Public Affairs Council
          Californians for Safety and Justice
          Californians United for a Responsible Budget
          Center for Young Women's Development
          Center on Juvenile and Criminal Justice
          Chrysalis
          City and County of San Francisco
          City of Berkeley
          City of Carson, Mayor Jim Dear
          City of Richmond
          Coalition on Homelessness
          Community Coalition
          Congregations Organizing for Renewal
          Contra Costa Interfaith Supporting Community Organization
          Drug Policy Alliance
          East Bay Alliance for a Sustainable Economy
          East Bay Community Law Center
          Ella Baker Center for Human Rights
          Engineers and Scientists of California
          Equal Justice Society
          Equal Rights Advocates
          Friends Committee on Legislation of California
          Homies Unidos
          InnerCity Struggle
          Justice First, LLP
          Justice Not Jails
          Justice Now
          LA Voice
          Lawyers' Committee for Civil Rights of the San Francisco Bay  
          Area
          Legal Aid Society - Employment Law Center
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          Los Angeles Alliance for a New Economy
          Los Angeles Regional Reentry Partnership
          Mexican American Legal Defense and Educational Fund
          Much More Bounce Inc./Ministries
          National Association of Social Workers - California Chapter
          National Council of La Raza
          National HIRE Network
          NMT/The Ripple Effects
          Oakland Rising
          Pacific Institute 
          PolicyLink
          Professional & Technical Engineers, Local 21
          Public Counsel
          Sacramento Area Congregations Together (A.C.T.)
          Saffron Strand, Inc.
          San Francisco Public Defender Jeff Adachi
          Santa Clara County Board of Supervisors 
          Service Employees International Union, Local 1000
          SHIELDS for Families
          Starting Over Inc.
          Straight Talk Program, Inc.
          The Greenlining Institute
          The Sentencing Project
          The Training Center
          The Women's Council of the California Chapter of the National  
          Association of Social Workers
          The Women's Foundation of California
          Transgender Law Center
          UNITE HERE
          United food and Commercial Workers Union, Western States Council
          University of California Student Association
          Utility Workers Union of America, Local 132
          Western Center on Law & Poverty
          Youth Justice Coalition
          Youth Policy Institute
          

                                     OPPOSITION
          
          Association of California Cities - Orange County 
          Association of California Water Agencies
          California District Attorneys Association
          Hearing Date:  June 26, 2013                             AB 218  
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          California Special Districts Association
          California State Association of Counties
          City of Camarillo
          Costa Mesa Sanitary District Board of Directors
          Desert Water Agency
          East Valley Water District
          El Dorado Irrigation District
          Lassen County
          League of California Cities
          Los Angeles County Board of Supervisors
          Newhall County Water District
          Orchard Dale Water District
          Rowland Water District
          Rural County Representatives of California
          Solano County Board of Supervisors
          Southwest California Legislative Council

























          Hearing Date:  June 26, 2013                             AB 218  
          Consultant: Alma Perez                                   Page 11

          Senate Committee on Labor and Industrial Relations