BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 241 (Ammiano) - Domestic Work Employees: Labor Standards Amended: July 1, 2013 Policy Vote: L&IR 3-1 Urgency: No Mandate: Yes Hearing Date: August 19, 2013 Consultant: Robert Ingenito This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 241 would establish new protections for domestic work employees, as defined, who work in private households. Fiscal Impact: The Department of Industrial Relations (DIR) would incur ongoing staffing costs of $285,000 (special funds) to review, investigate and resolve claims. DIR would incur one-time costs of $50,000 (special funds) to design, prepare and post education materials. DIR would have one-time costs of approximately $50,000 (special funds) to update, print, mail, and process a new wage order detailing the requirements of this bill. Background: In general, domestic workers are largely excluded from some of the more basic protections afforded to other workers under state and federal law, including the rights to overtime wages, meal and rest period rights and safe and healthy working conditions. Domestic workers may suffer discrimination, since California's Fair Employment and Housing Act only prohibits employers with five or more employees from discrimination on the basis of race, sex, religion, national origin, pregnancy, age, disability, marital status, sexual orientation, gender identity, or on the basis of an English only policy. California occupational safety and health law excludes 'household domestic service.' Proposed Law: This bill would enact the "Domestic Worker Bill of Rights" to provide protections and regulate the wages, hours, AB 241 (Ammiano) Page 1 and working conditions of domestic work employees, as defined. Specifically, this bill would (1) define various terms, and (2) establish specific employment rights for domestic work employees that include the following: A right to overtime compensation as provided under existing law. Rights to existing meal and rest period requirements for personal attendants. Eight hours of uninterrupted sleep for a domestic work employee who is a live-in or is required to be on duty for 24 consecutive hours or more, except in an emergency any time worked constitutes hours worked. Specifying that for a personal attendant accompanying a person with a disability when traveling out of town, time spent with the person in transit and attending to or carrying out the directives of the person constitutes hours worked, as specified. A domestic work employee required to sleep in the private household of his/her employer must be provided with a separate room that is a decent and sanitary sleeping accommodation, and shall not be required to share a bed. Permitting a domestic work employee who works five or more hours a day to choose the food he/she eats and to prepare his/her own at the job site's kitchen. Except for households with religious, dietary or health related restrictions. Related Legislation: AB 889 (Ammiano) of 2011, as originally introduced, was almost identical to this bill. However, AB 889 was subsequently amended to require the Department of Industrial Relations to adopt regulations governing specified working conditions of domestic work employees. AB 889 was vetoed by the Governor. Staff Comments: Current law tasks the Industrial Welfare Commission (IWC) within DIR to ascertain the wages, hours, and working conditions of employees and to adopt rules, regulations, and orders to ensure employer compliance. Under existing law, AB 241 (Ammiano) Page 2 the Division of Labor Standards Enforcement (DLSE) and the Office of the Labor Commissioner adjudicate wage claims, investigate various employee complaints, and enforce Labor Code statutes and IWC orders. This measure would require DLSE to enforce the provisions of the bill regulating wages, hours, and working conditions of domestic employees. DLSE's Wage Claim Adjudication (WCA) unit currently determines claims filed by employees covered under IWC Order 15 (Household Occupations) and domestic work employees would be covered under Order 15, except as otherwise protected under the bill. DLSE expects that generally the same household occupations covered under Order 15 will be the same as those covered under this bill. All domestic workers covered in the bill will be subject to the new worker protection requirements in addition to wages and overtime compensation. These changes will likely increase DLSE caseloads in Labor Code Section 98 adjudicatory proceedings for this industry. This bill expands coverage to personal attendants who were previously exempt from many sections of Order 15, including overtime provisions. As a result of additional rights created under this bill, including recovery of penalties payable to domestic workers, DLSE's existing WCA workload would increase. Anticipated costs for DLSE related to the requirements for AB 241 is estimated at $335,000, including (1) design, preparation and posting of education materials ($50,000), and (2) increased personnel costs (two full-time and three partial positions). In addition to staffing requirements, passage of the bill would also necessarily require that IWC Orders 15 be revised, printed and made available for distribution as requested. Actual costs incurred in 2006 to have the Employment Development Department print, process and mail the one-page minimum wage order to 750,000 employers was $50,000 (plus $254,000 in postage costs). The cost of printing the multi-page IWC Orders 15 but in smaller quantities would be approximately the same (without the necessity of bulk postage costs). Any local government costs resulting from the mandate in this measure would not be state-reimbursable because the mandate only involves the definition of a crime or the penalty for conviction of a crime. AB 241 (Ammiano) Page 3