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,  








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          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,  








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          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.








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