BILL ANALYSIS Ó
AB 1522
Page 1
ASSEMBLY THIRD READING
AB 1522 (Gonzalez)
As Amended May 28, 2014
Majority vote
LABOR & EMPLOYMENT 5-1 JUDICIARY 6-3
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|Ayes:|Roger Hernández, Alejo, |Ayes:|Wieckowski, Alejo, Chau, |
| |Chau, Gomez, Holden | |Dickinson, Garcia, Stone |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Morrell |Nays:|Wagner, Gorell, |
| | | |Maienschein |
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APPROPRIATIONS 12-5
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|Ayes:|Gatto, Bocanegra, | | |
| |Bradford, | | |
| |Ian Calderon, Campos, | | |
| |Eggman, Gomez, Holden, | | |
| |Pan, Quirk, | | |
| |Ridley-Thomas, Weber | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Bigelow, Donnelly, Jones, | | |
| |Linder, Wagner | | |
| | | | |
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SUMMARY : Requires employers to provide paid sick days, as
specified. Specifically, this bill :
1)Provides that an employee who works in California for seven or
more days in a calendar year is entitled to paid sick days as
specified in this bill, on and after July 1, 2015.
2)Provides that an employee shall accrue paid sick days at the
rate of not less than one hour per every 30 hours worked,
beginning at the commencement of employment or the operative
date of this bill, whichever is later.
3)Provides that an employee shall be entitled to use accrued
paid sick days beginning on the 90th calendar day of
employment, after which the employee may use paid sick days as
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they are accrued.
4)Provides that an "employee" does not include:
a) An employee covered by a valid collective bargaining
agreement that expressly provides for paid sick days or
similar policy, as specified.
b) An employee in the construction industry covered by a
valid collective bargaining agreement that was entered into
before January 1, 2015, or waives the requirements of this
bill, as specified.
5)Provides that "employer" includes the state, political
subdivisions of the state, and municipalities.
6)Provides that a public authority shall comply with these
requirements for individuals who perform in-home supportive
services, except that the public authority may satisfy these
requirements by entering into a collective bargaining
agreement that provides an incremental hourly wage adjustment
in an amount sufficient to satisfy the accrual requirements of
this bill.
7)Provides that an employer shall provide paid sick days for the
following purposes:
a) Diagnosis, care, or treatment of an existing health
condition of, or preventative care for, an employee or an
employee's family member, as defined.
b) For an employee who is a victim of domestic violence,
sexual assault or stalking, as specified.
8)Provides that paid sick days shall carry over to the following
year of employment, but an employer may limit an employee's
use of paid sick days to 24 hours or three days in each
calendar year of employment.
9)Specifies that an employer is not required to provide
additional paid sick days if the employer has a paid leave
policy or paid time off policy that meets the accrual
requirements and other purposes of this section, as specified.
10)Provides that an employer is not required to provide
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compensation to an employee for accrued and unused paid sick
days upon separation from employment, except that if an
employee separates from employment and is rehired within one
year, previously accrued and unused paid sick leave shall be
reinstated.
11)Authorizes an employer to lend paid sick days to an employee
in advance of accrual, as specified.
12)Provides that an employer shall not deny an employee the
right to use paid sick days or engage in other adverse
employment actions, as specified.
13)Provides that there shall be a rebuttable presumption of
unlawful retaliation if any employer denies an employee the
right to use paid sick days or takes other specified adverse
action within 30 days of specified protected activities by the
employee.
14)Requires an employer to provide each employee with written
notice of these requirements, as specified.
15)Requires the employer to retain records for five years
documenting an employee's hours worked and paid sick days
accrued and used, as specified.
16)Directs the Labor Commissioner to coordinate implementation
and enforcement of these requirements and to promulgate
guidelines and regulations.
17)Directs the Labor Commissioner to enforce these requirements,
and establishes administrative procedures, enforcement
actions, and administrative penalties, as specified.
18)Authorizes the Labor Commissioner or the Attorney General to
bring a civil action in a court of competent jurisdiction to
recover relief, as specified, including back pay, penalties,
liquidated damages and attorney's fees and costs.
19)Provides that these requirements do not limit or affect any
laws guaranteeing the privacy of health information, or
information related to domestic violence or sexual assault, as
specified.
20)Provides that these requirements shall not be construed to
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discourage or prohibit an employer from the adoption or
retention of a more generous paid sick days policy.
21)Provides that these requirements do not lessen the obligation
of an employer to comply with a contract, collective
bargaining agreement, employment benefit plan, or other
agreement providing more generous sick days.
22)Provides that these requirements establish minimum standards
and do not preempt, limit or otherwise affect the
applicability of any other law, regulation, requirement,
policy, or standard that provides for greater accrual or use
of employees of sick days or that extends other protections to
an employee.
23)Makes related legislative findings and declarations of
legislative intent.
24)Makes related and conforming changes.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)Initial costs of $1.2 million (special funds) to the
Department of Industrial Relations associated with training,
rulemaking, investigation and enforcement of complaints.
Ongoing costs of $1.1 million to DIR for ongoing investigation
and enforcement of wage and retaliation claims.
2)Potential costs of $500,000 to $800,000 (GF) to the Attorney
General for investigation and prosecution of statutory
violations, to the extent the bill leads to increased civil
action.
3)Major costs to state and local governments in California
beginning July 1, 2015. For example, employee-related costs
related to in-home supportive services (IHSS). There are an
estimated 385,485 providers that average 1,261 hours of work
annually. Divided by the accrual rate of 30 hours specified in
this bill, a provider would accrue approximately 42 days of
sick leave annually. Providers make an average wage of $12.33.
Assuming this hourly wage adjustment, multiplied by days
accrued on an annual basis, multiplied by the estimated
385,485 providers, the cost of the annual accrued time would
be approximately $200 million. The bill authorizes a
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limitation of 3 days per year. Assuming this is applied,
annual costs for IHSS providers is approximately $14.3
million. These costs are paid with combined county, state, and
federal funds. The state share is 32.5% or $4.6 million.
COMMENTS : Supporters of this measure, including the California
Labor Federation, AFL-CIO, argue that millions of workers in
California cannot take a day off when they or someone in their
family falls ill. Under current state law, nothing requires
employers to provide paid sick days, and as a result, roughly
39% of the workforce earns no sick leave benefits whatsoever.
That leaves seven million Californians with few options when
personal or family needs arise. Supporters state that a worker
without such leave is either expected to work while sick,
risking the health and safety of co-workers and customers, or
stay home and forego wages, jeopardizing that worker's own
ability to survive. This impossible choice is as unfair as it is
unnecessary and has no place in today's economy.
Opponents, including the California Chamber of Commerce, argue
that while many employers voluntarily offer sick leave for
full-time employees, expanding this mandate on all employers
will create a huge burden on employers. For example, many
employers currently offer paid sick leave which accrues on a per
month or per pay period basis. However, this bill requires them
to completely change their existing policies in order to mirror
the accrual rate proposed under this bill. Opponents also
contend that the new posting and notice requirements, with
additional penalties for noncompliance, puts employers at risk
of litigation. Opponents raise particular concern about some of
the enforcement mechanisms contained in this bill, including the
private right of action.
As introduced, this bill authorized the Labor Commissioner, the
Attorney General, an aggrieved person, or an entity a member of
which is aggrieved to bring specified civil actions for
violations of this bill. Recent amendments delete the
authorization for aggrieved persons and specified entities to
bring such civil actions. However, it should be noted that the
provisions of this bill are in addition to and independent of
any other rights, remedies or procedures available under any
other law and do not diminish, alter or negate any other legal
rights, remedies or procedures available to an aggrieved person.
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Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0003857