BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1522
          Author:   Gonzalez (D), et al.
          Amended:  8/22/14 in Senate
          Vote:     21

           
           SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE  :  3-1, 6/11/14
          AYES:  Hueso, Leno, Padilla
          NOES:  Wyland 
          NO VOTE RECORDED:  Mitchell

           SENATE JUDICIARY COMMITTEE  :  5-2, 6/24/14
          AYES: Jackson, Corbett, Lara, Leno, Monning
          NOES: Anderson, Vidak

           SENATE APPROPRIATIONS COMMITTEE  :  5-0, 8/14/14
          AYES:  De León, Hill, Lara, Padilla, Steinberg
          NO VOTE RECORDED:  Walters, Gaines

           ASSEMBLY FLOOR  :  52-23, 5/29/14 - See last page for vote


           SUBJECT  :    Employment:  paid sick days

           SOURCE  :     California Labor Federation, AFL-CIO
                      California State Council of the Service Employees  
          International
                        Union 


           DIGEST  :    This bill enacts the Healthy Workplaces, Healthy  
          Families Act of 2014, which requires employers to provide paid  
          sick days to employees who work 30 or more days within a year  
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          from commencement of employment.  

           Senate Floor Amendments  of 8/22/14 add to the currently exempt  
          employees, as specified; specifies requirements for notifying  
          employers of the need to use the leave; specifies the rate of  
          pay for the sick leave; and require employers to provide  
          information to employee's regarding the paid sick leave policy  
          through a written notice currently required for new hires.

           ANALYSIS  :    Existing law provides for various forms of unpaid  
          and (in some circumstances) paid leave for employees. Existing  
          law authorizes, but does not require, employers to provide their  
          employees with paid sick leave.  Any employer that chooses to  
          provide sick leave must allow an employee to use accrued and  
          available sick leave, in an amount not less than the sick leave  
          that would be accrued during six months at the employee's then  
          current rate of entitlement.  Sick leave can be used by the  
          employee for any of the following reasons: 

           Being physically or mentally unable to work due to illness,  
            injury, or a medical condition of the employee.  

           Obtaining professional diagnosis of treatment for a medical  
            condition of the employee. 

           Other medical reasons of the employee, such as pregnancy or  
            obtaining a physical examination. 

           To attend to an illness of a child, parent, spouse, or  
            domestic partner of the employee. 

          Existing law does not require this sick leave to accrue, from  
          one year to the next, nor does it vest.  In addition, sick leave  
          does not extend the maximum period of leave to which an employee  
          is entitled under other leaves, such as the federal Family and  
          Medical Leave Act, regardless of whether sick leave is received  
          during that leave.  

          Existing law prohibits employers from denying an employee the  
          right to use sick leave or discharge, threaten to discharge,  
          demote, suspend, or in any manner discriminate against an  
          employee for using, or attempting to use, sick leave to attend  
          to an illness of a child, parent, spouse, or domestic partner of  
          the employee.  Violation of this right entitles employees to  

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          reinstatement and actual damages or one day's pay, whichever is  
          greater, and to appropriate equitable relief.  The employee can  
          either file a complaint with the Labor Commissioner, or bring a  
          civil action for remedies. 

          Currently, San Francisco County is the only county that has  
          passed an ordinance requiring employers to provide paid sick  
          leave for all employees, including temporary and part-time  
          employees, who work within the county.  The San Francisco Paid  
          Sick Leave Ordinance became effective on February 5, 2007.    

          This bill enacts the Healthy Workplaces, Healthy Families Act of  
          2014, which requires employers to provide paid sick days to  
          employees who work 30 or more days within a year from the  
          commencement of employment.  Specifically, this bill:

           1. Provides that, an employee who, on or after July 1, 2015,  
             works for 30 or more days in a within a year from  
             commencement of employment is entitled to paid sick days. 

           2. Specifies that paid sick days accrue at a rate of no less  
             than one hour for every 30 hours worked, and may be used  
             beginning on the 90th day of employment.  

           3. Provides that paid sick days may accrue and be carried over  
             to the following year; however, employers may limit their use  
             to 24 hours or three days in each year.  No accrual or carry  
             over is required if the full amount of leave is received at  
             the beginning of each year, as specified.

           4. Provides that "employer" includes any person employing  
             another and includes the state, political subdivisions of the  
             state, and municipalities.  

           5. Provides that an "employee" does not include:

                 An employee covered by a valid collective bargaining  
               agreement that expressly provides for paid sick days or  
               similar policy, as specified.

                 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.

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                 An employee covered by a valid collective bargaining  
               agreement who performs domestic services comprising in-home  
               supportive services, as specified.

                 An individual employed by an air carrier as a flight  
               deck or cabin crew member that is subject to specified  
               provisions. 

           1. Requires an employer, upon oral or written request of an  
             employee, to provide paid sick days for the following  
             purposes: 

                 Diagnosis, care or treatment of an existing health  
               condition of, or preventive care for, an employee or the  
               employee's family member; or

                 For an employee who is a victim of domestic violence,  
               sexual assault, or stalking as specified. 

           1. Defines "family member" to include a child, as specified, a  
             parent, as specified, a spouse, a registered domestic  
             partner, a grandparent, a grandchild, or a sibling.

           2. Does not require an employer to provide compensation to an  
             employee for accrued, unused paid sick days upon termination,  
             resignation, retirement, or other separation from employment,  
             except if an employee is rehired by the same employer within  
             one year from the date of separation, any previously accrued,  
             unused paid sick days shall be reinstated.  

           3. Does not require an employer to provide additional paid sick  
             days, as specified, if the employer has a paid leave police  
             or paid time off policy, the employer makes available an  
             amount of leave that may be used for the same purposes and  
             under the same conditions, as specified.

           4. Allows an employer to lend paid sick days to an employee in  
             advance of accrual, at the employer's discretion and with  
             proper documentation.   

           5. Requires an employer to provide an employee with written  
             notice that sets forth the amount of paid sick leave  
             available or paid time leave and employee provides in lieu of  

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             sick leave for use on either the employee's itemized wage  
             statement, as specified.

           6. Provides that an employer has no obligation under this bill  
             to allow an employee's total accrual of paid sick leave to  
             exceed 48 hours or six days, as specified.

           7. Requires the rate of pay to be the employee's hourly wage.   
             If the employee in the 90 days of employment before taking  
             accrued sick leave had different hourly pay rates, was paid  
             by commission or piece rate, or was a nonexempt salaried  
             employee, then the rate of pay shall be calculated by  
             dividing the employee's total wages, not including overtime  
             premium pay, by the employee's total hours worked in the full  
             pay periods of the prior 90 days of employment.

           8. Requires, if the need for paid sick leave is foreseeable,  
             the employee to provide reasonable advance notification.  If  
             the need for paid sick leave is unforeseeable, the employee  
             shall provide notice of the need for the leave as soon as  
             practicable.

           9. Requires an employer to provide payment for sick leave taken  
             by an employee no later than the payday for the next regular  
             payroll period after the sick leave was taken.

           10.Prohibits an employer from requiring employees to find a  
             replacement worker as a condition of using his/her paid sick  
             days. 

           11.Establishes a rebuttable presumption of unlawful retaliation  
             if an employer denies an employee the right to use sick days  
             or takes other specified adverse action within 30 days of  
             specified protected activities by the employee.  

           12.Requires an employer to keep for at least three years  
             records documenting the hours worked and paid sick days  
             accrued and used by an employee, and allows the Labor  
             Commissioner to access these records.  Requires an employer  
             to make these records available to an employee in the same  
             manner as described.  If an employer does not maintain  
             adequate records pursuant to this section, it shall be  
             presumed that the employee is entitled to the maximum number  
             of hours accruable under this article, unless the employer  

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             can show otherwise by clear and convincing evidence.

           13.Directs the Labor Commissioner to: 

                 Coordinate implementation and enforcement of these  
               requirements and to promulgate guidelines and regulations;

                 Investigate alleged violations and order appropriate  
               relief, including reinstatement, back pay, the payment of  
               sick days unlawfully withheld, and additional  
               administrative penalties, as specified; and

                 In addition to the Labor Commissioner, the Attorney  
               General may bring a civil action against an employer in a  
               court of competent jurisdiction to recover relief on behalf  
               of the aggrieved, as specified.

           1. Specifies that this bill establishes minimum requirements  
             for paid sick days and does not preempt, limit, or otherwise  
             affect the applicability of any other law or similar  
             requirement that provides greater accrual or use of sick  
             days, or that extends other protections to employees. 

           2. Makes several findings and declarations related to employees  
             and the need and benefits of providing for paid sick days.  

           3. Caps various administrative penalties at $4,000.

          FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified 8/21/14)(Unable to reverify at time of  
          writing)

          California Labor Federation, AFL-CIO (co-source)  
          California State Council of the Service Employees International  
          Union (co-source) 
          9to5 National Association of Working Women
          Alameda Labor Council, AFL-CIO
          American Civil Liberties Union of CA
          American Federation of State, County and Municipal Employees,  
          AFL-CIO
          Breathe California
          Broad and Gusman, LLP Attorneys at Law

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          California Bus Association
          California Catholic Conference of Bishops
          California Communities United Institute
          California Employment Lawyers Association 
          California Medical Association
          California Nurses Association
          California Professional Firefighters
          California School Employees Association, AFL-CIO
          California State Association of Electrical Workers
          California State Pipe Trades Council
          California Teachers Association
          California Work and Family Coalition
          City and County of San Francisco
          Communication Workers of America, AFL-CIO, District 9
          Consumer Attorneys of California
          Family Caregiver Alliance
          Glendale City Employees Association
          Health Officers Association of California
          International Longshore and Warehouse Union, Southern California  
          District                                                     
          Council
          Legal Aid Society - Employment Law Center
          National Association of Social Workers, California Chapter
          National Association of Working Women
          Next Generation
          Organization of SMUD Employees
          Parent Voices
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association
          Teamsters
          UNITE Here
          United Domestic Workers of America, AFSCME, Local 3930
          United Nurses Associations of California / Union of Health Care  
          Professionals
          Western Center on Law and Poverty
          Western State Council of Sheet Metal Workers
          Young Invincibles

           OPPOSITION  :    (Verified 8/21/14)(Unable to reverify at time of  
          writing)

          Acclamation Insurance Management Services 
          Air Conditioning Trade Association 

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          Alhambra Chamber of Commerce 
          Allied Managed Care 
          Associated Builders and Contractors - San Diego Chapter 
          Associated Builders and Contractors of California 
          Associated General Contractors 
          Association of California 
          Brawley Chamber of Commerce Brea Chamber of Commerce 
          California Asian Chamber of Commerce 
          California Association of Health Facilities 
          California Association of Licensed Security Agencies, Guards and  
          Associates 
          California Association of Winegrape Growers 
          California Attractions and Parks Association 
          California Automatic Vendors Council 
          California Bankers Association 
          California Beer & Beverage Distributors 
          California Business Properties Association 
          California Business Roundtable 
          California Chamber of Commerce 
          California Chapter of American Fence Association 
          California Employment Law Council 
          California Farm Bureau Federation 
          California Fence Contractors' Association 
          California Grocers Association 
          California Hotel & Lodging Association 
          California Independent Grocers Association 
          California League of Food Processors 
          California Manufacturers and Technology Association 
          California New Car Dealers Association 
          California Newspaper Publishers Association 
          California Pool and Spa Association 
          California Professional Association of Specialty Contractors 
          California Restaurant Association 
          California Retailers Association 
          California Travel Association 
          California Trucking Association 
          Carlsbad Chamber of Commerce 
          CAWA - Representing the Automotive Parts Industry 
          Cerritos Regional Chamber of Commerce 
          Chambers of Commerce Alliance of Ventura & Santa Barbara  
          Counties 
          City of Cerritos
          Convention-Visitors Bureau 
          Dana Point Chamber of Commerce 

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          Desert Hot Springs Chamber of Commerce and Visitors Center 
          El Centro Chamber of Commerce 
          Flasher Barricade Association 
          Fountain Valley Chamber of Commerce 
          Fullerton Chamber of Commerce 
          Gateway Chambers Alliance 
          Greater Bakersfield Chamber of Commerce 
          Greater Conejo Valley Chamber of Commerce 
          Greater Fresno Area Chamber of Commerce 
          Greater Riverside Chambers of Commerce 
          Greater San Fernando Valley Chamber of Commerce 
          Huntington Beach Chamber of Commerce 
          International Franchise Association 
          Lodi Chamber of Commerce 
          Long Beach Area Chamber of Commerce 
          Marin Builders Association 
          National Federation of Independent Business 
          Orange County Business Council 
          Oxnard Chamber of Commerce 
          Palm Desert Area Chamber of Commerce 
          Plumbing-Heating-Cooling Contractors 
          Porterville Chamber of Commerce 
          Redondo Beach Chamber of Commerce 
          San Diego East County Chamber of Commerce 
          San Gabriel Valley Coalition 
          San Jose Silicon Valley Chamber of Commerce 
          Santa Clara Chamber of Commerce and 
          Simi Valley Chamber of Commerce 
          Southwest California Legislative Council 
          Tahoe Chamber of Commerce 
          Torrance Area Chamber of Commerce 
          Turlock Chamber of Commerce 
          Visalia Chamber of Commerce 
          Western Carwash Association 
          Western Electrical Contractors Association 
          Western Growers Association 
          Wine Institute

           ARGUMENTS IN SUPPORT  :    According to the author and proponents,  
          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.  Proponents argue that a worker without paid sick  

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          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.  They  
          argue that given the rising cost of living expenses, workers  
          just cannot afford to lose a day's pay.  According to the  
          author, this bill appropriately allows workers to earn paid sick  
          days, which they can use for personal illness, to care for a  
          sick family member and to recover from domestic violence or  
          assault.

          The author and proponents also point to studies which have found  
          that providing sick days to workers saves money for businesses  
          by reducing turnover, reducing the spread of illness in the  
          workplace, and improving workers' morale and productivity.   
          Furthermore, proponents argue that an overwhelming majority of  
          the public believes employers should be required to offer paid  
          sick days and point to a 2010 poll which found that 74% of  
          adults surveyed would support a law guaranteeing paid sick days,  
          with this position enjoying widespread support across party,  
          gender, and ethnic lines.  Finally, they argue that several  
          local jurisdictions - and the state of Connecticut - have  
          already passed this measure and found no adverse impact to  
          employers; therefore, they argue that it is time to allow  
          workers, the public, and employers access to all of the benefits  
          offered by earned sick leave legislation. 

           ARGUMENTS IN OPPOSITION  :    Opponents representing many large  
          and small business associations argue that this bill would  
          unreasonably expand employers' burdens, costs and liability.   
          They argue that many employers already offer paid sick leave and  
          believe that California should incentivize this practice rather  
          than mandate it.  With regards to the cost concern, opponents  
          point out that many employers allow employees to accrue sick  
          leave per pay period or per month, not according to the number  
          of hours worked.  Accordingly, such employers will have to  
          completely change their policies in order to mirror the accrual  
          rate proposed under this bill, resulting in increased cost to  
          employers.  Additionally, this bill mandates that accrued sick  
          leave carry over from year to year, a practice currently not  
          required therefore imposing a new burden on employers. 

          Regarding the various penalties contained in the bill, opponents  
          argue that, while an employee should be made whole for any  
          violation of the law, the layering of additional penalties, such  

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          as treble damages, is simply an unjustified windfall.  Opponents  
          also object to the bill's creation of a rebuttable presumption  
          of retaliation, arguing that the burden will fall on the  
          employer to prove that employment decisions were valid, instead  
          of the burden falling on the employee to prove retaliation.  For  
          example, an employee who took paid sick leave returns to work  
          the following day and is caught stealing, he/she is then  
          terminated, however,  this individual would be protected under  
          the automatic rebuttable presumption and the burden would then  
          fall on the employer to prove its actions were valid.

          Another point of concern for opponents is the new posting and  
          notice requirements, with additional penalties for  
          noncompliance, required in the bill which they argue puts  
          employers at risk of litigation.  Current law already requires  
          employers to post over 15 different notices and they argue that  
          at some point the posting of such information becomes just  
          another added expense without any corresponding benefit to  
          employees overwhelmed with postings.  Also of concern to  
          opponents is the requirement in the bill that gives local  
          counties and cities authority to adopt more stringent paid sick  
          leave requirements than is included in the bill.  They argue  
          that this provision will create inconsistency and confusion for  
                                     California employers who operate in different jurisdictions.  

           ASSEMBLY FLOOR  : 52-23, 05/29/14
          AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,  
            Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,  
            Chesbro, Dababneh, Daly, Dickinson, Eggman, Fong, Fox, Garcia,  
            Gatto, Gomez, Gonzalez, Gordon, Gray, Hall, Roger Hernández,  
            Holden, Jones-Sawyer, Levine, Lowenthal, Medina, Mullin,  
            Nazarian, Pan, Perea, John A. Pérez, V. Manuel Pérez, Quirk,  
            Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner,  
            Stone, Ting, Weber, Wieckowski, Williams, Yamada, Atkins
          NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Dahle,  
            Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones,  
            Linder, Logue, Maienschein, Mansoor, Melendez, Nestande,  
            Patterson, Wagner, Waldron, Wilk
          NO VOTE RECORDED: Cooley, Frazier, Muratsuchi, Olsen, Vacancy


          PQ:nl  8/25/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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