BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 241| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 241 Author: Ammiano (D), et al. Amended: 9/3/13 in Senate Vote: 21 SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 3-1, 6/26/13 AYES: Monning, Leno, Yee NOES: Wyland NO VOTE RECORDED: Padilla SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/30/13 AYES: De León, Hill, Lara, Padilla, Steinberg NOES: Walters, Gaines ASSEMBLY FLOOR : 45-25, 5/29/13 - See last page for vote SUBJECT : Domestic work employees: labor standards SOURCE : California Domestic Workers Coalition DIGEST : This bill enacts the Domestic Worker Bill of Rights to provide protections and regulate the wages, hours, and working conditions of domestic work employees, as defined. ANALYSIS : Under existing law, it is the duty of the Industrial Welfare Commission (IWC), within the Department of Industrial Relations (DIR), to ascertain the wages, hours and working conditions of employees in the state and promulgate rules, regulations and orders to ensure that employers comply with those provisions of law. CONTINUED AB 241 Page 2 Under existing law, the Division of Labor Standards Enforcement (DLSE) and the Office of the Labor Commissioner were established to adjudicate wage claims, investigate discrimination and public works complaints, and enforce Labor Code statutes and IWC orders. Existing law, for overtime compensation: 1. With certain exceptions, defines a day's work as eight hours of labor. Any additional hours worked must be compensated with the payment of overtime, as follows: A. Any work in excess of eight hours in one workday, any work in excess of 40 hours in any one workweek, and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee; B. Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the regular rate of pay for an employee; C. Any work in excess of eight hours on any seventh day of a workweek shall be compensated at the rate of no less than twice the regular rate of pay of an employee. Existing law, for meal and rest periods: 1. Requires, with certain exemptions, that all employees receive a meal break of 30 minutes before the start of the fifth hour of work, unless the work period is no more than six hours and both the employer and employee choose to waive the meal period by mutual consent. 2. Requires that if the work period is more than ten hours, a second meal period of 30 minutes must also be granted to an employee. This second meal period can be waived by the mutual consent, but only if the work period is no more than 12 hours, and the first meal period was not waived. 3. Requires that employers provide non-exempt employees with rest breaks of 10 minutes for every four hours worked. CONTINUED AB 241 Page 3 4. Provides that if an employer fails to provide a duty-free meal or rest period, the employer must give the employee one hour of additional premium wages at the employee's regular rate of compensation for each workday that a meal period was not provided. Existing IWC Wage Orders, allow for "on-duty" meal periods where the employee is not relieved of work responsibilities, but is allowed to eat while they work. An on-duty meal period is permitted only when the nature of the work prevents an employee from being completely relieved of work. All on-duty meal period agreements must be in writing, and the employee may revoke the on- duty meal period agreement at any time. This bill enacts the "Domestic Worker Bill of Rights" to provide protections and regulate the wages, hours, and working conditions of domestic work employees, as defined. Specifically, this bill: 1. Provides the following definitions, among others: A. "Domestic work" means services related to the care of persons in private households or maintenance of private households or their premises, including childcare providers, caregivers of the disabled, sick, convalescing, or elderly persons, house cleaners, housekeepers, maids and other household occupations. B. "Domestic work employee" means an individual who performs domestic work (including live-in domestic work employees and personal attendants). However, the term does not include (thereby exempting from the requirements of this bill): In-Home Supportive Services (IHSS) program employees; Specified family members; A babysitter under 18 years of age; A person employed as a casual babysitter of a CONTINUED AB 241 Page 4 minor working not more than six hours per week; A person employed by a licensed health facility; A person employed by an organization vendored or contracted through a regional center or the Department of Development Services, as specified, to provide services and support for persons with development disabilities; and A person who provides child care, as specified, if the parent or guardian of the child receives child care and development services pursuant to any program authorized under the Child Care and Development Services Act or the CalWORKs Act. C. "Live-in domestic work employee" means an employee who resides in the employer's household at least five days per week and has sleep accommodations. D. "Personal attendant" means a person employed by a private or third-party to supervise, feed, or dress a person who, by reason of advanced age, physical disability, or mental deficiency, needs supervision. However, status as a personal attendant applies only if this work does not exceed 20% of the total weekly hours worked. E. "Domestic work employer" means a person who (including through the services of a third-party employer) employs or exercises control over the wages, hours or working conditions of a domestic work employee, and excludes the following: The State of California or an individual receiving domestic work services through the IHSS program or who is eligible for that program based on his/her income. An employment agency that operates solely to procure, offer, refer, provide, or attempt to provide work to domestic workers, as specified. A licensed health facility. CONTINUED AB 241 Page 5 2. Establishes specific employment rights for domestic work employees that includes: A. A right to overtime compensation as provided under existing law; B. Rights to existing meal and rest period requirements for personal attendants; C. A domestic work employee who is a personal attendant shall be compensated as follows: (1) More than nine hours in a day shall be compensated at 1.5 times the employee's regular rate of pay. (2) More than 16 hours in a day shall be compensated at two times the employee's regular rate of pay. D. 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. E. 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. F. 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. G. 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. 3. Provides that these provisions shall be enforced by the DLSE. CONTINUED AB 241 Page 6 4. Provides for administrative or civil enforcement of these provisions, as specified, including remedies and attorney's fees and costs to prevailing domestic work employees. 5. Makes several legislative findings and declarations regarding domestic workers. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee: 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. SUPPORT : (Verified 9/3/13) California Domestic Workers Coalition (source) American Civil Liberties Union of California Anakbayan Silicon Valley Asian Americans for Civil Rights and Equality Asian Pacific American Labor Alliance Asian Pacific American Legal Center of Southern CA Asian Pacific Environmental Network Babae San Francisco California Communities United Institute California Immigrant Policy Center California Nurses Association California Women's Agenda Center for Transformative Change Central Coast Alliance United for a Sustainable Economy Centro Laboral de Graton Chinese Progressive Association Coleman Advocates for Children and Youth Community United Against Violence Dignidad Rebelde Dolores Street Community Services CONTINUED AB 241 Page 7 East Bay Alliance for a Sustainable Economy East Bay Interfaith Committee for Worker Justice End DV Counseling and Consulting Filipino Advocates for Justice Filipino Migrant Center Forward Together GABRIELA USA Gray Panthers of San Francisco Interfaith Coalition for Immigrant Rights Interfaith Council on Economics and Justice Labor Project for Working Families Latino Union of Chicago Long Beach Immigrant Rights Coalition Mujeres Unidas y Activas National Alliance for Filipino Concerns National Domestic Workers Alliance Oakland Rising Out4Immigration People Organized to Win Employment Rights Pilipino Workers Center of Southern California Racial Justice Allies of Sonoma County SEIU-United Healthcare Workers West Service, Immigrant Rights & Education Network Sisters of GABRIELA, Awaken! Temple Hashem Training Occupational Development Educating Communities Transnational Institute for Grassroots Research and Action Union Salvadorena de Estudiantes Universitarios United Educators of San Francisco Young Workers United OPPOSITION : (Verified 9/3/13) 24hr Home Care Addus HealthCare Alta Home Care At Home Nursing Care California Association for Health Services at Home California Chamber of Commerce Care Plus Home Care Caring Solutions ComForcare Senior Services Comfort Keepers of Encino CONTINUED AB 241 Page 8 Comfort Keepers of Lomita Comfort Keepers of Orange Comfort Keepers of San Diego Craig Cares DialMED Home Care Disability Rights California Elder Care Guides Hired Hands Inc. Home Care Association of America-Northern California Chapter Home Instead - Santa Barbara Home Instead Senior Care - Monrovia Home Instead Senior Care - Placentia Homecare California, Inc. Independent Nurse Consulting LivHOME Inc. Matched Care Givers Continuous Care Maxim Companion Services Medical Care Professionals Orange Chamber of Commerce Provident Care Res Care HomeCare Right at Home of Elk Grove Right at Home of Rancho Mirage Right at Home of San Diego Right at Home of Sonoma County Right at Home of Ventura County Senior Helpers-Caring In Home Companions The Arc of California United Cerebral Palsy California Collaboration Visiting Angels Living Assistance Services - San Ramon Visiting Angels Northeast Los Angeles and the West San Fernando Valley Visiting Angels Senior Homecare - Glendale Young at Heart Family Services ARGUMENTS IN SUPPORT : According to the author's office, in California, there are around 200,000 domestic workers who serve as housekeepers, nannies, and caregivers in private homes. The author's office argues that the role of domestic workers is essential to California as it enables others to participate in the workforce. Without these domestic workers our economy would suffer and many Californians would be forced to forgo their own jobs to address their household needs. However, the author's office contends, despite the importance of their work, domestic CONTINUED AB 241 Page 9 workers have historically received wages well below the poverty line and continue to be excluded from some of the most fundamental labor protections other Californian workers enjoy. Proponents argue that existing laws and exclusions are complex, leaving employers and workers without any clear guidelines. The author's office notes that domestic workers are among the most isolated and vulnerable workforce in the state. The unique nature of their work requires protections to prevent abuse and mistreatment from occurring behind closed doors, out of the public eye. Therefore, the author's office argues, this bill provides domestic workers with industry-specific protections to use kitchen facilities and cook their own food, and creates standards for sleep, meal and rest periods, overtime and paid vacations. Even domestic workers employed by agencies labor in individual homes and deserve equal rights and labor protections. Similarly, proponents argue that this bill seeks to provide industry-wide standards so that they can provide uniform quality care to the individuals and homes with which they are entrusted. They believe this uniformity will increase the quality of care and standardize the industry. Finally, proponents state that domestic workers are the bedrock of our society - they do the work that makes all other work possible. This bill will not only protect this significant and valuable workforce, but also will invest in the wellbeing of Californian's families and homes. ARGUMENTS IN OPPOSITION : Opponents, including the California Association for Health Services at Home and numerous individual home care companies and individuals, argue that this bill significantly impacts their ability to provide affordable care to elderly clients or clients with disabilities and makes it very difficult to provide care to those needing around the clock assistance. They argue that seniors and other frail Californians depend on private home care services to stay healthy and in their homes and to avoid institutionalization. Opponents contend that the homecare industry simply cannot absorb the additional increased labor costs resulting from this bill and will make live-in care completely unaffordable. Opponents contend that live-in rates would more than double - a cost that clients clearly will not pay when they can receive the CONTINUED AB 241 Page 10 same services from the "underground economy" and pay cash for a fraction of the cost. The California Chamber of Commerce (CalChamber) states that the wage and hour burden this bill creates on individual homeowners as well as third-party employers is significant, and unprecedented. Failure to comply with any of the requirements in the bill will subject the homeowner or third-party employer to costly statutory penalties and litigation, including an employee's right to attorneys' fees. They argue that, as demonstrated by the overwhelming number of employment lawsuits filed on a daily basis, sophisticated businesses, with professional human resources staff and employment attorneys, struggle with the proper implementation of the onerous California-only wage and hour requirements. This bill, they believe, expands this burden onto individual homeowners, who are simply seeking to hire assistance in the care for their children or elderly loved ones. According to the CalChamber, the detrimental impact of this potential liability will create one of two problems: (1) discourage any homeowner from retaining the services of "domestic work employees," thereby increasing the unemployment rate in California; or (2) force such homeowners and third-party employers to enter into the underground economy, as compliance with these requirements would simply be too costly. Either scenario, they argue, will only serve to further harm California's economy, and create additional financial problems than those already plaguing the state. Finally, opponents note that Governor Brown vetoed similar legislation last year over the "economic and human impact on the disabled or elderly persons and their families." ASSEMBLY FLOOR : 45-25, 5/29/13 AYES: Alejo, Ammiano, Atkins, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Ian Calderon, Campos, Chau, Chesbro, Dickinson, Eggman, Fong, Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Hall, Roger Hernández, Jones-Sawyer, Lowenthal, Medina, Mitchell, Mullin, Nazarian, Pan, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams, Yamada, John A. Pérez NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Cooley, Dahle, CONTINUED AB 241 Page 11 Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones, Logue, Maienschein, Mansoor, Melendez, Morrell, Nestande, Olsen, Patterson, Wagner, Waldron, Wilk NO VOTE RECORDED: Buchanan, Daly, Fox, Gray, Holden, Levine, Linder, Muratsuchi, Perea, Vacancy PQ:k 9/3/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED