BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 2271 (Calderon) - Employment: Discrimination: Status as  
          Unemployed
          
          Amended: March 28, 2014         Policy Vote: L&IR 4-1 Judiciary  
          5-1
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Robert Ingenito     
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 2271 would prohibit an employer from  
          discriminating against prospective job applicants on the basis  
          of the applicant's employment status.  This bill would provide  
          that an employer, employment agency, or person operating an  
          Internet job posting Web site who discriminates against  
          unemployed job applicants would be subject to a civil penalty,  
          enforceable by the Labor Commissioner.

          Fiscal Impact: The Department of Industrial Relations (DIR)  
          would incur increased administrative costs of $3.4 million in  
          the first year and $3.1 million ongoing as a result of the bill,  
          to process, review, and investigate complaints.

          Background: Existing law authorizes employers to conduct an  
          investigation, such as a background check, into a person's  
          character for employment purposes.  Existing law also prohibits  
          harassment and discrimination in employment because of race,  
          color, religion, sex, and sexual orientation, among others.   
          Existing law does not address discrimination based on a person's  
          employment status.

          Proposed Law: This bill would do all of the following:

          1)Provide 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  








          AB 2271 (Calderon)
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               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)Prohibit an employer, employment agency, or person operating 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)Authorize an individual aggrieved by a violation of this bill  
            to file a complaint with the Labor Commissioner.

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


          Related Legislation: This bill is similar, but not identical, to  
          AB 1450 (Allen) from 2012, which was vetoed by the Governor.  AB  
          1450 would have, among other things, prohibited an employer from  
          publishing an advertisement or announcement that indicated that  
          an individual's current employment is a requirement for a job.  
          This bill differs from AB 1450 in that it simply prohibits an  
          employer from asking an applicant to disclose information  
          concerning his/her current employment status until the employer  
          has determined that the applicant meets the minimum employment  
          qualifications for the position.  
          
          Staff Comments: Any employee or applicant for employment who  
          believes he or she was discharged or denied employment or  
          otherwise retaliated or discriminated against in violation of  
          any law under the jurisdiction of the department may file a  
          complaint with the department under Labor Codes 98.6 and 98.7.   








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          (Filing a complaint does not preclude the filing of a private  
          lawsuit.)  To investigate whether an alleged violator's action  
          was made under a bona fide occupational qualification is  
          workload intensive.

          After a complaint is filed, the complaint will be reviewed to  
          confirm the department has jurisdiction over the specific  
          complaint.  If it is found that the complaint comes under the  
          jurisdiction of the department it is assigned to a retaliation  
          complaint investigator who will contact the employer and any  
          witnesses with information regarding the alleged discrimination  
          or retaliation.  If appropriate, the investigator may request  
          the parties meet to explore the possibility of settlement.   
          Investigators have the authority to issue subpoenas to obtain  
          evidence related to the case.  Once the investigation is  
          complete, if no settlement is reached, the investigator will  
          prepare a written summary of findings.

          The Labor Commissioner will review the summary of findings and  
          make a determination.  If the Labor Commissioner finds the  
          employer violated the law by retaliating or discriminating  
          against the employee or job applicant, the employer will be  
          given ten days to file an appeal or to comply with the  
          determination to remedy the retaliation or discrimination.  If  
          the employer fails to comply, an attorney for the Labor  
          Commissioner will file a court action to enforce the  
          determination.  On occasion, the Labor Commissioner may hold a  
          hearing to fully establish the facts of the complaint.