BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2271
                                                                  Page  1

          Date of Hearing:   May 7, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                AB 2271 (Ian Calderon) - As Amended:  March 28, 2014 

          Policy Committee:                              LaborVote:5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill prohibits an employer, employment agency or person  
          operating a job posting website from stating or indicating that  
          an individual's current employment is a requirement for a job,  
          unless based on a bona fide occupational qualification. Further  
          prohibits the employer from affirmatively asking an applicant  
          for employment to disclose information concerning the  
          applicant's current employment status until the employer has  
          determined that the applicant meets the minimum employment  
          qualifications for the position. Specifically, this bill:

          1)Provides that this bill does not prohibit an employer,  
            employment agency, or person operating a job posting website  
            from doing the following:

             a)   Publishing an advertisement or announcement for any job  
               that contains any provision setting forth qualifications  
               for a job, as specified, including that only individuals  
               who are current employees of the employer will be  
               considered for the job.
             b)   Setting forth qualifications for any job, as specified.
             c)   Obtaining information regarding an individual's  
               employment, including recent relevant experience.
             d)   Having knowledge of a person's employment status.
             e)   Inquiring as to the reasons for an individual's  
               employment status.
             f)   Refusing to offer employment to a person because of the  
               reasons underlying an individual's employment status.
             g)   Otherwise making employment decisions pertaining to that  
               individual.

          1)Prohibits an employer, employment agency, or person operating  








                                                                  AB 2271
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            a job posting website from interfering with, restraining, or  
            denying the exercise of, or the attempt to exercise, any  
            rights provided under this bill, or discriminating against an  
            individual because the individual has engaged in specified  
            activities.

          2)Authorizes an individual aggrieved by a violation of this bill  
            to file a complaint with the Labor Commissioner.

          3)Establishes civil penalties of $1,000 for a first violation,  
            $5,000 for a second violation, and $10,000 for each subsequent  
            violation.




           FISCAL EFFECT  

          GF administrative costs to the Department of Industrial  
          Relations, potentially in the range of $1 million to $3 million,  
          to process, review, and investigate complaints. Predicting the  
          nature of the claims and penalties is difficult.  DIR could  
          receive several thousand cases per year as this bill does not  
          allow for private civil action. 
          
           COMMENTS  

           1)Purpose  . This bill is in response recent media reports that  
            found some employers refusing to consider applicants for  
            employment unless those individuals are currently employed in  
            other jobs (thereby excluding from consideration those  
            applicants who are currently unemployed). Supporters of the  
            measure, including the California Labor Federation, contend  
            the recent recession has given birth to a new form of  
            discrimination.  This bill seeks to prevent employers,  
            including the state and local agencies, or employment agencies  
            from affirmatively asking an applicant for employment to  
            disclose information concerning employment status until the  
            employer or employment agency has determined that the  
            applicant meets the minimum employment qualifications for the  
            position. 

           2)Prior legislation.   AB 1450 (Allen) of 2012 was similar to  
            this bill.  This bill differs from AB 1450 in that it  
            prohibits an employer from affirmatively asking an applicant  








                                                                  AB 2271
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            for employment to disclose information concerning the  
            applicant's current employment status until the employer has  
            determined that the applicant meets the minimum employment  
            qualifications for the position. 

            This approach is more consistent with recent efforts related  
            to employment applicants with criminal histories.  For  
            example, AB 218 (Dickinson) enacted last year prohibits a  
            state or local agency from asking an applicant for employment  
            to disclose information concerning the conviction history of  
            the applicant, including any inquiry about conviction history  
            on any employment application, until the agency has determined  
            the applicant meets the minimum employment qualifications, as  
            stated in any notice issued for the position.

            There is no opposition to this measure on file. 
           

           Analysis Prepared by  :    Misty Feusahrens / APPR. / (916)  
          319-2081