BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2013-2014 Regular Session


          AB 556 (Salas)
          As Amended April 11, 2013
          Hearing Date: June 11, 2013
          Fiscal: Yes
          Urgency: No
          TMW


                                        SUBJECT
                                           
                 Fair Employment and Housing Act:  Military Veterans

                                      DESCRIPTION  

          This bill would incorporate into the Fair Employment and Housing  
          Act protection from discrimination and retaliation for military  
          employees and veterans.

                                      BACKGROUND  

          Various statutes, such as the Fair Employment and Housing Act  
          (FEHA) and the Unruh Civil Rights Act, prohibit discrimination  
          in employment, housing, public accommodation and services  
          provided by business establishments on the basis of specified  
          personal characteristics such as sex, race, color, national  
          origin, religion, and disability.  Over time, these statutes  
          have been amended to include other characteristics such as  
          medical conditions, marital status, and sexual orientation.   
          Also over time, other statutes were amended to reflect the  
          state's public policy against discrimination in all forms.  

          The federal Uniformed Services Employment and Reemployment  
          Rights Act (USERRA) provides employment discrimination  
          protection for a person who is an active duty military or a  
          veteran and has an obligation to perform service in a uniformed  
          service (United States Armed Forces, United States Armed Forces  
          Reserve, the United States National Guard).  (38 U.S.C. 4311.)   
          The California Military and Veterans Code incorporates this  
          discrimination protection, and further extends it to members or  
          veterans of the California National Guard.  (Mil. & Vet. Code  
          Sec. 394.)
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          This bill would further protect members of the military and  
          veterans from employment discrimination and retaliation on the  
          basis of military and veteran status by including "military and  
          veterans status" on the list of characteristics that, if used as  
          the basis for an adverse employment action, is prohibited  
          discrimination under FEHA. 
           
                                CHANGES TO EXISTING LAW
           
           Existing federal law  , the Uniformed Services Employment and  
          Reemployment Rights Act (USERRA), prohibits discrimination and  
          retaliation against active duty military and veterans on the  
          basis of the person's military membership, application for  
          membership, performance of service, application for service, or  
          obligation.  (38 U.S.C. 4311.)

           Existing federal law  prohibits an employer's use of the  
          employee's military membership, performance of service,  
          application for service, or obligation as a motivating factor as  
          cause for an adverse employment decision against the employee.   
          (38 U.S.C. 4311.)

           Existing federal law  , the USERRA, provides that any person whose  
          absence from a position of employment is necessitated by reason  
          of service in the uniformed services shall be entitled to  
          specified reemployment rights and benefits and other employment  
          benefits of this chapter.  (38 U.S.C. 4312.)

           Existing law  prohibits discrimination by a person, public  
          entity, or official against any officer, warrant officer, or  
          enlisted member of the military or naval forces because of that  
          membership, and prohibits prejudice or injury by any person,  
          employer, or officer or agent of any corporation, company, or  
          firm with respect to that member's employment, position or  
          status or be denied or disqualified for employment by virtue of  
          the membership.  (Mil. and Vet. Code Sec. 394.)

           Existing law  prohibits an employer or officer or agent of any  
          corporation, company, or firm, or other person, from:  (1)  
          discharging any person from employment because of the  
          performance of any ordered military duty or training or by  
          reason of being an officer, warrant officer, or enlisted member  
          of the military or naval forces of this state; (2) preventing  
          that person from performing any military service or from  
          attending any military encampment or place of drill or  
                                                                      



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          instruction he or she may be called upon to perform or attend by  
          proper authority; (3) using prejudice or harm against an  
          employee in any manner in his or her employment, position, or  
          status by reason of the employee's performance of military  
          service or duty or attendance at military encampments or places  
          of drill or instruction; or (4) dissuading, preventing, or  
          stopping any person from enlistment or accepting a warrant or  
          commission in the California National Guard or Naval Militia by  
          threat or injury to the employee in respect to his or her  
          employment, position, status, trade, or business because of  
          enlistment or acceptance of a warrant or commission.  (Mil. and  
          Vet. Code Sec. 394.)

           Existing law  prohibits a private employer or officer or agent of  
          any corporation, company, or firm, or other person, from  
          restricting or terminating any collateral benefit for employees  
          by reason of an employee's temporary incapacitation (any period  
          of incapacitation of 52 weeks or less) incident to duty in the  
          National Guard or Naval Militia.  (Mil. and Vet. Code Sec. 394.)
           Existing law  provides that a violation of the above state  
          employment protections is a misdemeanor, and that any person  
          violating any of these provisions is liable for actual damages  
          and reasonable attorney's fees incurred by the injured party.   
          (Mil. and Vet. Code Sec. 394.)

           Existing law  provides that a covered employee has an absolute  
          right to be restored to the former office or position and status  
          formerly had by him or her in the same locality and in the same  
          office, board, commission, agency, or institution of the public  
          agency upon the termination of temporary military duty.  If the  
          office or position has been eliminated during the employee's  
          absence, the employee must be reinstated to a position of like  
          seniority, status, and pay if a position exists, or if no  
          position exists, the employee will have the same rights and  
          privileges that he or she would have had if he or she had  
          occupied the position when it ceased to exist and had not taken  
          temporary military leave of absence.  (Mil. and Vet. Code Sec.  
          395.)

           Existing law  entitles any public employee, who has been in the  
          service of the public agency from which a leave is taken for a  
          period of not less than one year immediately prior to the date  
          upon which a temporary military leave of absence begins, to  
          receive the same vacation, sick leave, and holiday privileges,  
          and the same rights and privileges to promotion, continuance in  
          office, employment, reappointment to office, or reemployment  
                                                                      



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          that the employee would have enjoyed had he or she not been  
          absent therefrom.  (Mil. and Vet. Code Sec. 395.)
           
          Existing law,  the Fair Employment and Housing Act prohibits  
          discrimination in housing and employment on the basis of race,  
          religious creed, color, national origin, ancestry, physical  
          disability, mental disability, medical condition, marital  
          status, sex, age, or sexual orientation.  (Gov. Code Sec. 12920  
          et seq.)

           This bill  would add "military or veteran status" to the list of  
          characteristics on which basis a person may not be discriminated  
          against in employment.

           This bill  would define "military or veteran status" as a member  
          or veteran of the United States Armed Forces, United States  
          Armed Forces Reserve, the United States National Guard, and the  
          California National Guard.

           This bill  also would make technical and conforming changes to  
          various code sections.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            Veterans of the United States Armed Forces are currently not  
            protected from discriminatory hiring practices that may come  
            as a result of incorrect assumptions regarding the prevalence  
            of Post-Traumatic Stress Disorder, personality issues,  
            insensitivity to military culture, and because military  
            applicants are non-traditional applicants.  Employers express  
            concern over military members stating that they are too  
            non-traditional, too old and will not take orders from younger  
            civilians, and that they have fallen behind their civilian  
            counterparts.    

            This [b]ill would remedy these injustices and would allow  
            Veterans to attain or not attain employment based solely on  
            their merit instead of prejudice and discrimination. 
             
            Veterans already have a difficult time readjusting to civilian  
            life from which they have been temporarily displaced.  In  
            October of 2012, the unemployment rate for young veterans in  
                                                                      



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            California peaked at 43 [percent].  Many Veterans returning  
            from foreign conflicts of the past decade are at risk of  
            homelessness as a result of not being able to secure steady  
            employment. 
                    
            This bill would allow Veterans to secure and maintain  
            employment without discrimination from employers, and agents,  
            or any other person.  Rather than amending a carbon copy of  
            the [FEHA] language into the Military and Veterans [C]ode,  
            including "military and veteran status" as a protected group  
            in FEHA would provide a more clear and substantive framework  
            for protecting Military and Veterans from discrimination and  
            harassment.  Current law regulating anti-military and veteran  
            discrimination is silent on discrimination by labor  
            organizations, employment agencies, apprenticeship programs  
            and any person or entity who aids, abets, incites, compels, or  
            coerces the doing of a discriminatory act, as well as  
            retaliation against those who report.

          2.  Providing discrimination and retaliation protection for  
            characteristics associated with military or veteran status  

          Although existing federal and state law provide discrimination  
          and retaliation protection for members of the military and  
          veterans and duties associated therewith, this bill would  
          further provide discrimination and retaliation protection for  
          characteristics associated with military or veteran status.

          According to the author, existing state and federal laws  
          discourage employment discrimination against military members  
          and veterans, but the discrimination still persists.  The author  
          notes that active members of the military and National Guard are  
          protected from employment termination based on their  
          obligations.  However, the author argues that there are still  
          many instances where the burden of obligations is not the direct  
          cause of the express act of discrimination or wrongful  
          termination based on discrimination, which fall into loopholes  
          that need to be closed.  Additionally, there are many situations  
          covered in the Fair Employment and Housing Act (FEHA) that are  
          not covered under state and federal anti-military discrimination  
          laws.  For example, the author asserts that non-job related  
          inquiries about the prospective military member or veteran can  
          be used by the employer to circumvent the FEHA prohibitions  
          against asking about disabilities, including post-traumatic  
          stress disorders (PTSD) and traumatic brain injuries (TBI).  

                                                                      



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          A recent Los Angeles Times article demonstrates an example of  
          the challenges experienced by veterans seeking employment as  
          follows:

            Veterans' advocacy groups, and many unemployed veterans, say  
            civilian employers don't always appreciate veterans' skills  
            and maturity.  They point out that this is the first  
            generation of employers who have no widespread military  
            experience and thus no inherent appreciation for what the  
            institution can provide.

            Further, the increased military and media attention given to  
            [PTSD] and [TBI] has had the effect of stigmatizing veterans,  
            advocates say.  Some employers fear that soldiers diagnosed  
            with these conditions are prone to violence or instability.

            The unemployment rate for veterans of Afghanistan and Iraq is  
            10.3 [percent], according to the Bureau of Labor Statistics.   
            For veterans age 24 and under, the rate is 29.1 [percent], or  
            12 points higher than for civilians the same age.  That  
            compares with 8.2 [percent] unemployment nationally, and 7.5  
            [percent] for all veterans.

            A survey this year by the advocacy group Iraq and Afghanistan  
            Veterans of America found that a quarter of its members could  
            not find a job to match their skill level, and half said they  
            did not believe employers were open to hiring veterans.   
            (Zucchino, Unemployment is a Special Challenge for Veterans  
            (Apr. 25, 2012) Los Angeles Times  
             [as of May 30, 2013].)

          One year later, a CNN article, commenting on recent U.S. Bureau  
          of Labor Statistics report, noted that the unemployment rate for  
          veterans had dropped, but veterans were still lagging behind  
          non-vets in the job market:

            The unemployment rate for veterans who have served in the U.S.  
            military since the terrorist attacks of Sept. 11, 2001 dropped  
            by 2.2 percentage points in 2012, to 9.9 [percent]. But that's  
            still higher than last year's 7.9 [percent] unemployment rate  
            for nonveterans, the report said. 

            Army veteran Marcel Rowley of South Lake Tahoe, Calif., who  
            served in Afghanistan in 2006 and 2007, said that he had a  
            difficult time trying to secure part-time employment while  
                                                                      



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            going to school on the GI Bill.  He said that as soon as he  
            mentioned the time period during which he served, the job  
            interview would "taper off," as the interviewer realized he  
            was a war veteran. 

            "With all the ski resorts out here, you would think it would  
            be fairly simple [to get a job,]" he said.  "But because of  
            PTSD, companies won't hire veterans.  It's because they're  
            afraid they're going to have an episode in the work place."   
            (Smith, Veteran unemployment dropped to 9.9 [percent] in 2012  
            (Mar. 20, 2013) CNN Money  
              [as of June 1, 2013].)

          The issue presented by this bill is whether military and veteran  
          status should be included in the list of characteristics  
          provided under FEHA and prohibited from employment  
          discrimination and retaliation.  Existing federal and state laws  
          provide anti-discrimination and anti-retaliation protection for  
          the military and veterans based upon their membership in and  
          obligations to the military.  However, these laws do not specify  
          that military members and veterans should not be discriminated  
          against based upon other aspects associated with being current  
          or former military members.  

          The Afghanistan and Iraq conflicts have resulted in a large  
          population of military members and veterans with PTSD and TBI.   
          As of September 2011, mental health diagnoses were the second  
          largest diagnostic category among OCO veterans who had received  
          health care services from VHA, affecting 52 percent of those  
          patients.  (Mental health issues were second only to  
          musculoskeletal diagnoses.)  (Congressional Budget Office, The  
          Veteran's Health Administration's Treatment of PTSD and  
          Traumatic Brain Injury Among Recent Combat Veterans (Feb. 2012)  
          Congress of the United States   
          [as of June 1, 2013] at p. 3.)  

          Unfortunately, with increased public awareness of the traumas  
          experienced by recent military members and veterans, employers  
          have an increased concern about the psychological, behavioral,  
          cognitive, and emotional trauma some military members  
          experienced in their military duties and their ability to work  
          for the employer.  As shown in the Los Angeles Times and CNN  
          articles, these concerns apparently have turned into a  
          justification by some employers to discriminate against military  
                                                                      



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          members and veterans, which in turn has contributed to high  
          unemployment for these members and veterans.

          Presumably, this bill seeks to curb the stigmatization that  
          military members and veterans may have characteristics  
          associated with recent military experience (i.e., PTSD and TBI).  
           In order to protect military members and veterans from  
          discrimination and retaliation based on employer perceptions of  
          these characteristics, which may or may not actually apply to  
          the military member or veteran, this bill would prohibit an  
          employer from basing employment decisions on military or veteran  
          status.  Arguably, it is appropriate to provide such protections  
          to these employees who otherwise may be denied employment based  
          on incorrect assumptions that the employee has PTSD, would act  
          inappropriately, or may not be able to adequately perform the  
          tasks required by the job.  To provide these military members  
          and veterans a level playing field with non-military job  
          applicants and employees, this bill would require employers to  
          make hiring and other employment decisions based on the  
          applicant's or employee's abilities, rather than perceptions  
          about their potential inabilities.  
          It is important to note that existing federal and state law  
          entitles veterans to preferential treatment in hiring for  
          government jobs and promotions.  This bill, by prohibiting  
          adverse employment decisions based on discriminatory motivations  
          using military or veteran status, would not be in conflict with  
          these preference laws because it specifically declares that  
          nothing in the bill should be interpreted as preventing the  
          ability of employers to identify members of the military or  
          veterans for the purpose of awarding a veteran's preference as  
          permitted by law.


           Support  :  American Legion - Department of California; AMVETS -  
          Department of California; California Association of County  
          Veterans Service Officers; California State Commanders Veterans  
          Council; VFW - Department of California; Vietnam Veterans of  
          California

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  SB 404 (Jackson) would add  
                                                                      



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          "familial status" to the list of characteristics that are  
          prohibited bases of discrimination under the employment  
          provisions of the Fair Employment and Housing Act.

           Prior Legislation  :

          SB 36 (Baca, Ch. 201, Stats. 1999) requires any city, county, or  
          city and county, general law or chartered, when it has  
          established a civil service system, to implement a veterans'  
          preference system, or adopt a resolution identifying reasons  
          that the local agency does not do so.

          SB 1150 (Fletcher and Burns, Ch. 123, Stats. 1945) requires  
          military veteran preference on civil service employment lists.

           Prior Vote  :

          Assembly Committee on Judiciary (Ayes 10, Noes 0)
          Assembly Committee on Labor and Employment (Ayes 7, Noes 0)
          Assembly Committee on Appropriations (Ayes 17, Noes 0)
          Assembly Floor (Ayes 70, Noes 0) 

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