BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 241
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          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   AB 241 (Ammiano) - As Amended:  March 19, 2013 

          Policy Committee:                              Labor and  
          Employment   Vote:                            5-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill establishes the Domestic Worker Bill of Rights.   
          Specifically, this bill: 

          1)Defines domestic work as services related to the care of  
            persons in private households or maintenance of private  
            households or their premises (i.e., childcare providers,  
            caregivers of sick and/or elderly and people with  
            disabilities, house cleaners).  

          2)Defines domestic work employee as an individual who performs  
            domestic work and includes live-in domestic work employees.   
            Specifies In-Home Supportive Service (IHSS) program employees,  
            specified family members, minor babysitters, employees of a  
            licensed health care facility, and a person employed or who  
            contracts with a regional center or the State Department of  
            Developmental Services are not included in this definition.  

          3)Defines domestic work employer as a person (including through  
            a third party employer) who employs or exercises control over  
            wages, hours, or working conditions of a domestic work  
            employee.  Specifies the State of California, individuals who  
            receive services through IHSS, licensed health care  
            facilities, and employment agencies operating solely as  
            referral agencies are not included in this definition. 

           FISCAL EFFECT  

          1)Potential unknown annual costs to Division of Labor Standard  
            Enforcement (DSLE), likely between $800,000 and $1.2 million,  
            to process increased claims (e.g., for wage violations and  








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            workers compensation) due to the provisions of this bill.   
            Costs are associated with staff time to review and resolve  
            claims.  

          2)One-time administrative costs to the Department of Industrial  
            Relations (DIR), of approximately $300,000, to update, print,  
            mail, and process a new wage order detailing the requirements  
            of this bill.  

           SUMMARY, CONTINUED
           
          1)Defines personal attendant as a person who performs domestic  
            work related to the supervision, feeding, or dressing of a  
            child or other person who needs supervision (including a  
            babysitter), as specified.  

          2)Establishes numerous rights for domestic work employees,  
            including the following: a right to overtime pay after eight  
            hours in a workday or 40 hours in a workweek; paid days of  
            rest after one year; mandatory sleeping periods if he or she  
            is on duty for 24 consecutive hours or more; meal and rest  
            periods for personal attendants; access to a kitchen; and  
            sleeping accommodations (live-in employees).  
           
           3)Repeals the current requirement that domestic workers work at  
            least 52 hours and earn more than $100 in the previous 90 days  
            to be eligible for worker's compensation coverage.  

           COMMENTS  

           1)Rationale  .  In August 2010, New York enacted The Domestic  
            Workers Bill of Rights, which provides minimum pay,  
            overtime/sick benefits, meal and rest periods, and worker's  
            compensation benefits, as specified.  This law took effect in  
            November 2010 and defines domestic worker as someone who works  
            in another person's home, including a housekeeper, and a  
            caregiver of children and the elderly, as specified. 

            According to information provided by the author, there are  
            over 200,000 domestic workers in California who serve as  
            housekeepers, nannies, caregivers, and home health aids in  
            private homes.  They are primarily immigrant women in work in  
            private households.  According to a survey report entitled,  
            Behind Closed Doors: Working Conditions of California  
            Household Workers (Mujeres Unidas y Activas, Day Labor Program  








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            Women's Collective of La Raza Centro Legal, Data Center, March  
            2007), 98% of survey respondent were women and of this number  
            94% are Latina.  Also, 54% of respondents indicate they are  
            the primary income earners for their household.        

            According to the author, "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 unique nature  
            of their work requires protections to prevent abuse and  
            mistreatment from occurring behind closed doors, out of the  
            public eye."  This bill establishes the Domestic Work Employee  
            Equality, Fairness, and Dignity Act, which delineates specific  
            rights to domestic workers, as specified.  

           2)Existing state and federal law  generally excludes domestic  
            workers from some of the protections afforded to other  
            workers, including the right to overtime wages, healthy and  
            safe working conditions, worker's compensation, employment  
            discrimination, and the right to engage in collective  
            bargaining.  

           3)Opposition  .  Opponents of this measure argue the requirements  
            made on domestic work employers are unnecessary and  
            burdensome.  Specifically, they contend the provisions of the  
            bill will lead to only wealthy individuals being able to  
            employ housekeepers, nannies, and caregivers of the elderly  
            and disabled.  They also argue the requirements of this bill  
            will lead many middle income employers to hire domestic work  
            employees off the books, which diminishes the tax revenue the  
            state collects.  

           4)Previous legislation  .  AB 889 (Ammiano), in its earlier  
            version, contained nearly identical provisions related to the  
            establishment of rights for domestic workers.  This bill,  
            however, was significantly amended during the legislative  
            process and the final product required DIR, no later than  
            January 1, 2014, to adopt regulations governing the working  
            conditions of domestic work employees, as defined.  The  
            regulations were required to provide for all of the following:  
             (a) overtime compensation, (b) meal and rest periods, and (c)  
            uninterrupted sleep periods and compensation for  
            interruptions.  This bill was vetoed by the governor in  
            September 2012 with the following message: 









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            "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 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  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081 












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