BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  SB 404
          Author:   Jackson (D)
          Amended:  5/24/13
          Vote:     21

           
           SENATE JUDICIARY COMMITTEE  :  5-2, 4/2/13
          AYES:  Evans, Corbett, Jackson, Leno, Monning
          NOES:  Walters, Anderson

           SENATE APPROPRIATIONS COMMITTEE  :  5-2, 5/23/13
          AYES:  De Le�n, Hill, Lara, Padilla, Steinberg
          NOES:  Walters, Gaines


           SUBJECT  :    Fair employment:  familial status

           SOURCE  :     California Employment Lawyers Association
                      Center for WorkLife Law
                      Equal Rights Advocates


           DIGEST  :    This bill includes familial status, as an additional  
          basis upon which the right to seek, obtain, and hold employment  
          cannot be denied.

           ANALYSIS  :    Existing law, the Fair Employment and Housing Act  
          (FEHA) prohibits discrimination in housing and employment on the  
          basis of race, religious creed, color, national origin,  
          ancestry, physical disability, mental disability, medical  
          condition, marital status, sex, age, or sexual orientation.

          This bill:
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          1. Adds "familial status" to the list of characteristics on  
             which basis a person may not be discriminated against in  
             employment.

          2. Defines "familial status" in this context to include "an  
             individual who provides medical or supervisory care to a  
             family member."

          3. Defines "family member" as a child, parent, spouse, domestic  
             partner, or parent-in-law,  as defined in various statutes.

          4. Makes technical and conforming changes to various code  
             sections.

           Background
           
          Various statutes, such as FEHA and the Unruh Civil Rights Act,  
          prohibit discrimination in employment, housing, public  
          accommodation and services provided by business establishments  
          on the basis of specified personal characteristics such as sex,  
          race, color, national origin, religion, and disability.  Over  
          time, these statutes have been amended to include other  
          characteristics such as medical conditions, marital status, and  
          sexual orientation.  Also over time, other statutes were amended  
          to reflect the state's public policy against discrimination in  
          all forms.  

          One area that has experienced a significant increase in  
          litigation is "family responsibility discrimination" in  
          employment.  FEHA does not directly prohibit discrimination  
          based on an employee's status as a family caregiver.  However,  
          employees with family caregiving responsibilities who work full-  
          or part-time, job-share, use flextime, or follow some type of  
          modified compressed work schedule and were subjected to adverse  
          employment actions have litigated against their employers using  
          various federal statutes.  For example, Title VII of the Civil  
          Rights Act of 1964, 42 U.S.C.S. Sec. 2000e, which prohibits  
          employment discrimination on the basis of sex, race, color,  
          religion and national origin, has been used to protect family  
          caregivers in the workplace.  In 1978, Title VII was amended to  
          expand its protections to cover discrimination on the basis of  
          pregnancy.  That law has been of limited use in challenging  
          adverse employment actions arising from the need to care for or  

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          rear a child once born.  (See Piantanida v. Wyman Center, Inc.  
          (8th Cir. 1997) 116 F.3d 340, 342 (holding that claim of  
          discrimination based on plaintiff's status as a new parent is  
          not recognizable under the Pregnancy Discrimination Act, 42  
          U.S.C.S. Sec. 2000e(k)).)  The Family and Medical Leave Act of  
          1993 (FMLA) (29 U.S.C.S. Sec. 2601 et seq.) and the Americans  
          with Disabilities Act of 1990 (ADA) (42 U.S.C.S. Sec. 12101 et  
          seq.) have also been used to protect family caregivers in the  
          workplace.  As well, the Equal Pay Act of 1963 has provided some  
          basis for challenging wage discrimination faced by workers  
          providing family care.  But for those who have tried to use  
          these federal laws, the challenge has proven to be difficult and  
          complicated and, because the family caregiving responsibility is  
          not directly addressed by the statutes, the path has been  
          tortuous.

          Despite the difficulty of launching a lawsuit against an  
          employer for discrimination based on family caregiving  
          responsibilities, where the federal statutes do not directly  
          provide protection, there has been a significant increase in  
          these cases.  According to a study performed by the University  
          of California-Hastings Center for Worklife Law, the number of  
          family responsibility discrimination cases increased to 481 in  
          the 10 years from 1996 to 2005 - nearly 400 percent more than  
          the 97 in the previous decade.  (Stephanie Bornstein, Robert J.  
          Rathmell, Univ. of Cal. Hastings Center for Worklife Law,  
          Caregivers as a Protected Class?:  The Growth of State and Local  
          Laws Prohibiting Family Responsibilities Discrimination (Dec.  
          2009), p. 2.)  These cases involve workers, both men and women,  
          alleging that they were discriminated against by their employers  
          because of their family caregiving responsibilities ranging from  
          raising young children, on the one hand, to caring for elderly  
          relatives on the other.  Litigation of these cases can be very  
          complicated, difficult, and expensive.  According to articles  
          written for employers by human resource journals, employers are  
          increasingly confused about the scope of their responsibility  
          and exposure to liability for employment policies or actions  
          adversely affecting employees with family caregiving  
          responsibilities.  

           Other state statutes providing familial status protection  .  The  
          University of California-Hastings Center for Worklife Law issued  
          a study (Study) on laws prohibiting family caregiver  
          discrimination, which identified "63 local laws in 22 states  

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          that go beyond state and federal law to expressly prohibit  
          discrimination at work against those who are also caregivers at  
          home."  (Stephanie Bornstein, Robert J. Rathmell, Univ. of Cal.  
          Hastings Center for Worklife Law, Caregivers as a Protected  
          Class?: The Growth of State and Local Laws Prohibiting Family  
          Responsibilities Discrimination (Dec. 2009), p. 1.)  


          In particular, the Study notes several states that provide  
          various levels of family caregiving status protections as  
          follows:


           Alaska's state employment antidiscrimination law includes  
            "parenthood" as a protected classification in order to prevent  
            discrimination in employment because of parenthood.  (See  
            Alaska Stat. Sec. 18.80.220(a).)


           The District of Columbia (D.C.), in its Human Rights Act,  
            includes the term "family responsibilities" as a protected  
            classification in its employment antidiscrimination law.   
            Under D.C. law, family responsibilities means "the state of  
            being, or the potential to become, a contributor to the  
            support of a person or persons in a dependent relationship,  
            irrespective of their number, including the state of being the  
            subject of an order of withholding or similar proceedings for  
            the purpose of paying child support or a debt related to child  
            support." (D.C. Code Ann. Sections 2-1401.01, 2-14101.02,  
            1-2502(12).)


           Connecticut's employment antidiscrimination provisions  
            prohibit employers from requesting or requiring employee  
            information related to "familial responsibilities" unless the  
            information is directly related to a bona fide occupational  
            qualification.  (Conn. Gen. Stat. Section 46a-60(a)(9)).   
            Unlike the Alaska and D.C. statutes, this is not a general  
            prohibition against employment discrimination on the basis of  
            familial responsibilities, but rather a limitation on an  
            employer's right to collect personal information that could be  
            used for a discriminatory purpose. 

           New Jersey has enacted a regulation, which accompanies the  

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            antidiscrimination statutes, that expressly prohibit state  
            (but not private) employers from discriminating against their  
            employees based on familial status.  (N.J. Admin. Code Sec.  
            4A:7-3.1(a).)  The regulation prohibits not only  
            discriminatory acts and harassment based on familial status,  
            but also retaliation for participation in the complaint  
            process.  (N.J. Admin. Code Section 4A:7-3.1(h).)

          In addition to state laws, the Equal Employment Opportunity  
          Commission released a guideline regarding unlawful disparate  
          treatment for family caregivers under federal laws.  The  
          guideline notes that "[a]lthough the federal EEO [Equal  
          Employment Opportunity] laws do not prohibit discrimination  
          against caregivers per se, there are circumstances in which  
          discrimination against caregivers might constitute unlawful  
          disparate treatment."  (U.S. Equal Empl. Opp. Comm., Enforcement  
          Guidance:  Unlawful Disparate Treatment of Workers with  
          Caregiving Responsibilities (May 23, 2007)  
           [as of March 28,  
          2013].)  This bill provides clear statutory guidance to  
          California employers for family caregiver discrimination rather  
          than requiring employers to sort through various federal laws,  
          guidelines, and state regulations.

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

          According to the Senate Appropriations Committee, the Department  
          of Fair Employment and Housing (DFEH) anticipates that the  
          inclusion of "familial status" among the bases upon which  
          employment discrimination is prohibited would cause a  
          non-absorbable increase in workload related to the number of  
          complaints filed for investigation. Specifically, DFEH estimates  
          on-going costs of $138,750 to add 1.5 positions to investigate  
          the additional complaints it anticipates would be filed if this  
          bill is enacted.  DFEH will not receive federal reimbursement  
          for the investigation and prosecution of these additional  
          complaints under its workshare agreement with the Equal  
          Employment Opportunity Commission.   

          DEFH already investigates complaints involving large employers'  
          (50 or more employees within 75-miles of worksite)  
          discrimination of employees' qualified California Family Rights  
          Act (CFRA) leave to care for a child, parent and/or spouse.   

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          Thus, investigations of these claims for all FEHA employers  
          under this bill could be absorbed.  

          The 144 additional complaints estimated to be filed annually  
          will generate investigations but are not anticipated to lead to  
          significant workload related to prosecution.  Generally, less  
          than one percent of complaints filed with DFEH result in  
          prosecutions. 

           SUPPORT  :   (Verified  5/23/13)

          California Employment Lawyers Association (co-source)
          Center for WorkLife Law (co-source)
          Equal Rights Advocates (co-source)
          9 to 5 National Association of Working Women
          American Association of University Women
          BreastfeedLA
          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Immigrant Policy Center
          California Labor Federation, AFL-CIO
          California Nurses Association
          California Professional Firefighters
          California State Association of Electrical Workers
          California State Pipe Trades Council
          California Teamsters Public Affairs Council
          California Women's Law Center
          Cancer Legal Resource Center
          Communications Workers of America, AFL-CIO, District 9
          Engineers & Scientists of California, IFPTE Local 20
          Family Caregiver Alliance
          International Longshore & Warehouse Union
          Labor Project for Working Families
          Laborers Locals 777 & 792
          Legal Aid Society-Employment Law Center
          Los Angeles Alliance for a New Economy
          Mexican American Legal Defense and Educational Fund
          National Association of Social Workers, California Chapter
          Organization of SMUD Employees
          Professional and Technical Engineers, IFPTE Local 21
          San Bernardino Public Employees Association
          San Luis Obispo County Employees Association
          Santa Rosa City Employees Association
          Service Employees International Union, California

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          The Center for WorkLife Law at UC Hastings College of Law
          United Auto Workers, Local 2865
          United Food and Commercial Workers Western States Council
          UNITE-HERE, AFL-CIO
          Utility Workers Union of America, Local 132
          Western States Council of Sheet Metal Workers

           OPPOSITION  :    (Verified  5/23/13)

          Air Conditioning Trade Association
          Associated Builders and Contractors of California
          California Association of Joint Powers Authorities
          California Chamber of Commerce
          California Chapter of the American Fence Association
          California Employment Law Council
          California Farm Bureau Federation
          California Fence Contractors Association
          California Grocers Association
          California Independent Grocers Association
          California League of Food Processors
          California Manufacturers and Technology Association
          California Restaurant Association
          California Retailers Association
          Chambers of Commerce Alliance of Ventura & Santa Barbara  
          Counties
          Civil Justice Association of California
          Culver City Chamber of Commerce
          Engineering Contractors Association
          Flasher Barricade Association
          Fullerton Chamber of Commerce
          Goleta Valley Chamber of Commerce
          Greater Bakersfield Chamber of Commerce
          Greater Conejo Valley Chamber of Commerce
          Greater Fresno Area Chamber of Commerce
          Marin Builders Association
          National Federation of Independent Business
          Palm Desert Area Chamber of Commerce
          Plumbing-Heating-Cooling Contractors Association of California 
          Rancho Cordova Chamber of Commerce
          Redondo Beach Chamber of Commerce
          South Bay Association of Chambers of Commerce
          Southwest California Legislative Council
          Tulare Chamber of Commerce
          Visalia Chamber of Commerce

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          Western Electrical Contractors Association

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          although discrimination based on "familial status" is explicitly  
          prohibited under the housing provisions of the FEHA, the same is  
          not true under the employment provisions.  Presently, the FEHA  
          does not adequately and explicitly protect California workers  
          from being discriminated against at work based on their familial  
          status.  Yet research shows that employees are regularly  
          discriminated against because of "familial status."

          When used as a factor in an employment decision, stereotypes and  
          assumptions about individuals based on their familial status  
          would be unlawful-as are, currently, stereotypes and assumptions  
          about workers based on their race, national origin, sex,  
          religion, marital status, and other existing protected  
          classifications.

          This bill is solely an anti-discrimination measure, it does not  
          call for any employee entitlements or any additional leave  
          related to family responsibilities.  This bill also has no  
          effect on current law that prohibits familial status  
          discrimination in housing.  

          The bill's sponsors note that the majority of American workers  
          have some family caregiving responsibilities outside of work, a  
          reality that has significant impacts on both employees and their  
          employers.  Seventy percent of U.S. families with children have  
          both parents in the labor force.  One in four employed men and  
          women have elder care responsibilities and nearly one in 10  
          workers have caregiving responsibilities for both elders and  
          children.  Any person who has both a job and family  
          responsibilities can be affected by familial status  
          discrimination.

           ARGUMENTS IN OPPOSITION  :    Opponents argue that this bill  
          applies to anyone who is perceived to provide familial care or  
          associated with someone who provides familial care.  Such a  
          broad application of a protected classification will essentially  
          encompass almost all employees in the workforce and, therefore,  
          will hamper an employer's ability to manage their business, as  
          any adverse employment action the employer takes against an  
          employee could be potentially challenged as discriminatory on  
          the basis of "familial status."

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          This burden that this bill creates will not only impact large  
          businesses, but also small businesses.  FEHA applies to any  
          employer who has five employees or more.  Accordingly, this bill  
          will subject these small businesses to potential costly  
          litigation based on the allegation that an employee who suffered  
          an adverse employment action provided familial medical or  
          supervisory care, was perceived as providing such care, or was  
          associated with someone providing such care.  
           

          AL:d  5/28/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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