BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          |SENATE RULES COMMITTEE            |                        AB 241|
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                                    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.  
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          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. 

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          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  

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                   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.

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          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.

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          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

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          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

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          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  

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          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  

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          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,  

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            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

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