BILL ANALYSIS Ó AB 2288 Page 1 Date of Hearing: April 29, 2014 ASSEMBLY COMMITTEE ON JUDICIARY Bob Wieckowski, Chair AB 2288 (Roger Hernández) - As Introduced: February 21, 2014 SUBJECT : Child Labor Protection Act of 2014 KEY ISSUE : SHOULD THE CHILD LABOR PROTECTION ACT OF 2014 BE ENACTED TO STRENGTHEN CURRENT LAW TO PROTECT CHILDREN FROM CHILD LABOR LAW ABUSES? SYNOPSIS According to the author, some of the nation's earliest labor laws were designed to protect child laborers from exploitation and abusive working conditions. However, child labor law violations continue to be rampant across many industries. In November 2011, Human Rights Watch published a report on child labor in the United States that exposed the fact that children as young as seven are working on farms, often 10 or more hours per day at the peak of harvest. In addition, the National Human Trafficking Resource Center reported that from 2007 to 2013, 20 percent of calls to their hotline from California reported labor trafficking, and nearly 30 percent of the victims were minors. This measure seeks to enact The Child Labor Protection Act Of 2014 which would strengthen current law to protect children from child labor law abuses by tolling pertinent statutes of limitations periods, strengthening protections from retaliation, and strengthening civil penalties for violations of statutes protecting children from such labor abuses. Given that this measure just arrived in this Committee and is primarily in the jurisdiction of that Committee, and that the expert staff of that Committee prepared an excellent and thorough report of the measure, this analysis relies almost exclusively on the excellent recent analysis of that Committee. The bill recently passed the Labor and Employment Committee on April 23, 2014, by a bipartisan vote of 7-0. It has no known opposition. SUMMARY : Enacts the Child Labor Protection Act of 2014 to strengthen current law to protect children from child labor law abuses by tolling pertinent statutes of limitations periods, strengthening protections from retaliation, and strengthening civil penalties for violations of statutes protecting children from such labor abuses. Specifically, this bill : AB 2288 Page 2 1)Provides that the statute of limitations for claims arising under the Labor Code shall be tolled until an individual allegedly aggrieved by an unlawful practice attains the age of majority, and provides that this provision is declaratory of existing law. 2)Provides that, in addition to other remedies available, an individual who is discharged, threatened with discharge, demoted, suspended, retaliated against, subjected to an adverse action, or in any other manner discriminated against in the terms or conditions of his or her employment because the individual filed a claim or civil action alleging a violation of the Labor Code that arose while the individual was a minor, whether the claim or civil action was filed before or after the individual reached the age of majority, shall be entitled to treble damages. 3)Provides that specified serious violations of existing law that involve a minor 12 years of age or younger shall be subject to a civil penalty in an amount not less than twenty-five thousand dollars ($25,000) and not exceeding fifty thousand dollars ($50,000) for each violation. EXISTING LAW : 1)Generally provides for a three year statute of limitations for an action upon a liability created by statute, other than a penalty or forfeiture. (Code of Civil Procedure section 338.) 2)Provides that if a person entitled to bring specified actions is, at the time the cause of action accrued either under the age of majority or insane, the time of the disability is not part of the time limited for the commencement of the action. (Code of Civil Procedure section 352.) FISCAL EFFECT : As currently in print this bill is keyed non-fiscal. COMMENTS : According to the author, some of the nation's earliest labor laws were designed to protect child laborers from exploitation and abusive working conditions. However, child labor law violations continue to be rampant across many industries. In November 2011, Human Rights Watch published a report on child labor in the United States which exposed the AB 2288 Page 3 fact that children as young as seven are working on farms, often 10 or more hours per day at the peak of harvest. In addition, the National Human Trafficking Resource Center reported that from 2007 to 2013, 20 percent of calls to their hotline from California reported labor trafficking, and nearly 30 percent of the victims were minors. This measure seeks to enact The Child Labor Protection Act Of 2014 which would strengthen current law to protect children from child labor law abuses by tolling pertinent statutes of limitations periods, strengthening protections from retaliation, and strengthening civil penalties for violations of statutes protecting children from such labor abuses. The measure recently passed the Labor and Employment Committee on April 23, 2014, by a bipartisan vote of 7-0. Tolling of the Statute of Limitations . As noted above, existing law already provides that the statute of limitations for claims created by a statute is tolled until an individual reaches the age of majority. This bill would add similar language to the Labor Code to specify that claims arising from child labor violations are similarly tolled until the individual reaches the age of majority. According to the author, this acknowledges the fact that minors may not be fully aware of their rights under the law, and are uniquely vulnerable to intimidation and coercion not to come forward with claims for violation of the law. Provisions Related to Discrimination and Retaliation for Child Labor Claims . According to the author, due to their age, child workers are uniquely vulnerable to intimidation and retaliation, which often prevents them from asserting their rights under the law. This bill would strengthen protections for these most vulnerable workers by providing that an individual who is discharged, threatened with discharge, demoted, suspended, retaliated against, subjected to an adverse action, or in any other manner discriminated against in the terms or conditions of his or her employment because the individual filed a claim or civil action alleging a violation of the Labor Code that arose while the individual was a minor shall be entitled to treble damages. The author contends that this would provide a powerful disincentive to employers to retaliate against these most vulnerable workers. Proposed Increases to Civil Penalties for the Most Serious Child Labor Violations Involving Minors Aged 12 Years or Younger . Existing law provides for two types of civil penalties for child AB 2288 Page 4 labor violations. Class "A" violations are the most serious violations that present an imminent danger to minor employees or risk of death or serious harm, and contain a civil penalty of $5,000-$10,000. Class "B" violations are less serious and provide a civil penalty of $500-$1,000. This bill would increase the civil penalty for class "A" (the most serious violations) where the minor is 12 years of age or younger to $25,000-$50,000. According to the author, this would provide added protections for our youngest child laborers against the most serious types of violations. ARGUMENTS IN SUPPORT : Supporters of this bill, including the California Teamsters Public Affairs Council, state that over 100 years ago, policymakers in this country began to question the benefits of child labor and started to recognize some of its evils. Laws were passed and organizations devoted to root out this problem were formed. Unfortunately, exploitation of children in the workplace is still a popular way for unscrupulous employers to reduce costs. Besides loss of childhood, these children experience wage theft, increased instances of work-related injuries, and other abuses. Supporters argue that some may think this is a problem that only exists in other places; however, this is simply not true. It happens right here, in every region and city in California. This bill would provide some meaningful penalties and the procedural ability for victims to get justice. Moreover, it may provide just enough disincentive to keep some employers from engaging in this practice. REGISTERED SUPPORT / OPPOSITION : Support American Federation of State, County and Municipal Employees California Conference of Machinists California Conference of the Amalgamated Transit Union California Labor Federation, AFL-CIO California School Employees Association California Teachers Association California Teamsters Public Affairs Council Communications Workers of America, District 9 Engineers & Scientists, Local 20 International Longshore and Warehouse Union, Coast Division Professional & Technical Engineers, Local 21 AB 2288 Page 5 UNITE HERE Utility Workers Union of America, Local 132 Opposition None on file Analysis Prepared by : Drew Liebert / JUD. / (916) 319-2334