BILL ANALYSIS Ó AB 2271 Page 1 GOVERNOR'S VETO AB 2271 (Ian Calderon) As Amended August 18, 2014 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: |51-23|(May 28, 2014) |SENATE: |24-9 |(August 19, | | | | | | |2014) | ----------------------------------------------------------------- ----------------------------------------------------------------- |ASSEMBLY: |55-21|(August 21, | | | | | | |2014) | | | | ----------------------------------------------------------------- Original Committee Reference: L. & E. SUMMARY : Enacts various provisions of law related to discrimination based on an individual's employment status (present unemployment). The Senate amendments delay implementation of this bill to July 1, 2015. AS PASSED BY THE ASSEMBLY , this bill: 1)Defined "employment status" to mean an individual's present unemployment, regardless of length of time that the individual has been unemployed. 2)Prohibited an employer, unless based on a bona fide occupational qualification, from doing either of the following: a) Publishing an advertisement or announcement for any job that includes a provision stating or indicating that an individual's current employment is a requirement for the job. b) Affirmatively asking an applicant for employment to AB 2271 Page 2 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. 3)Prohibited an employment agency, unless based on a bona fide occupational qualification, from doing any of the following: a) Publishing an advertisement or announcement for any job that includes a provision stating or indicating that an individual's current employment is a requirement for the job. b) Limiting, segregating, or classifying an individual in any manner that may limit that individual's access to information about jobs or referrals for consideration of jobs because of the individual's employment status. c) 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. 4)Prohibited a person who operates a job posting Web site, unless based on a bona fide occupational qualification, from publishing an advertisement or announcement for any job that includes a provision stating or indicating that an individual's current employment is a requirement for the job. 5)Provided that this bill does not prohibit an employer, employment agency, or person operating a job posting Web site 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; AB 2271 Page 3 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; and, g) Otherwise making employment decisions pertaining to that individual. 6)Prohibited an employer, employment agency, or person operating a job posting Web site 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. 7)Authorized an individual aggrieved by a violation of this bill to file a complaint with the Labor Commissioner. 8)Established civil penalties of $1,000 for a first violation, $5,000 for a second violation, and $10,000 for each subsequent violation. FISCAL EFFECT : According to the Senate Appropriations Committee, the Department of Industrial Relations will incur increased administrative costs of $3.4 million in the first year and $3.1 million ongoing as a result of this bill to process, review, and investigate complaints. COMMENTS : According to the author, research shows that the long-term unemployed are frequently overlooked and sometimes excluded from job opportunities. Employers and employment agencies have posted job vacancy notifications with language such as "No unemployed candidates considered at all" or "Only currently employed candidates will be considered." Employers AB 2271 Page 4 are disinclined to hire even well-qualified job applicants who have been out of work for six months or longer. Three Princeton economists found that only 11% of those unemployed for more than six months will ever regain steady full-time work. Therefore, the author states that this bill would seek 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. This bill will prohibit an employer, employment agency, or person who operates on Internet Web site for posting jobs in this state from publishing a job announcement or advertisement containing a provision stating or indicating that an individual's current employment is a requirement for the job, unless based on a bona fide occupational qualification. There is no opposition on file. GOVERNOR'S VETO MESSAGE : "This bill would prohibit an employer from discriminating against job applicants based on the applicant's status as unemployed. While I support the intent of this bill, it could impede the state's efforts to connect unemployed workers to prospective employers as currently drafted. The problems facing our state's long term unemployed are great. There is no doubt that those Californians want to get back to work and I want to help them get there - unfortunately this bill does not provide the proper path to address this problem." Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091 FN: 0005608 AB 2271 Page 5