BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  SB 404
                                                                  Page A
          Date of Hearing:   June 26, 2013

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                               Roger Hern�ndez, Chair
                     SB 404 (Jackson) - As Amended:  May 24, 2013

           SENATE VOTE  :   26-13
           
          SUBJECT  :   Fair employment: familial status.

           SUMMARY  :   Adds "familial status" to the protected categories of  
          the employment provisions of the Fair Employment and Housing Act  
          (FEHA).  Specifically,  this bill  :
            
          1)Expands the scope of prohibited bases of discrimination under  
            employment provisions of FEHA to include "familial status."

          2)Provides that "familial status" means an individual who  
            provides medical or supervisory care to a family member.

          3)Specifies that "family member" means a child, a parent, a  
            spouse, a domestic partner, or a parent-in-law, as those terms  
            are defined.

          4)Specifies legislative intent that these provisions do not  
            supersede, limit, or preempt any federal, state, or local law  
            that provides greater protections from employment  
            discrimination.

          5)Specifies legislative intent that these provisions are not  
            intended to limit or preclude any claim or cause of action on  
            the basis of familial status or family responsibilities under  
            federal, state, or local law. 

          6)Makes related technical and conforming changes.

           EXISTING LAW  :

          1)Provides, under FEHA and the Unruh Civil Rights Act,  
            protections against discrimination in employment, housing,  
            public accommodation and services provided by business  
            establishments on the basis of specified personal  
            characteristics such as sex (including gender), race, color,  
            national origin, religion, sexual orientation, and disability.
              









                                                                  SB 404
                                                                  Page B
          2)Prohibits discrimination based on "familial status" under the  
            housing provisions of FEHA.  Under the Government Code (�  
            12955.2), "familial status" is defined as one or more  
            individuals under 18 years of age who reside with a parent,  
            with another person with care and legal custody of that  
            individual (including foster parents) or with a designee of  
            that parent or other person with legal custody.  Familial  
            status also includes a pregnant woman or a person who is in  
            the process of adopting or otherwise securing legal custody of  
            any individual under 18 years of age.



           FISCAL EFFECT  :   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.

           COMMENTS  :  This bill proposes to include "familial status" in  
          the list of prohibited bases for employment discrimination.   
          Unlike the housing provisions of FEHA, "familial status" in this  
          case is defined more broadly to include family relations beyond  
          independent children.

          In the past, discrimination cases have been brought by employees  
          using existing federal or state statues that, while providing  
          remedies for some form of discrimination, do not directly  
          address an employee's status as a family caregiver as a  
          protected class.  Instead these employees have had to try to fit  
          their circumstances into narrow definitions in the statutes, or  
          to ask courts to apply decisional law in many jurisdictions to  
          their case, to be able to fashion some remedy.  

          For example, in 2004, a school psychologist at an elementary  
          school, who had received positive performance reviews for two  
          years and had been assured that she would receive tenure, was  
          denied tenure after having a child.  Her supervisors expressed  
          concerns that it was "not possible for [her] to be a good mother  
          and have this job" and questioned whether her commitment work  
          would drop after she received tenure because she "had little  









                                                                  SB 404
                                                                 Page C
          ones at home."  Despite the fact that there was no  
          similarly-situated male employee for her to compare herself to,  
          the Second Circuit allowed her gender discrimination case to  
          proceed, holding that stereotypes about mothers not being  
          committed to or compatible with work were "themselves, gender  
          based." Back v. Hastings on Hudson Union Free School District,  
          (2004) 365 F.3d 107.

          Perhaps the most apparent instance where "familial status" may  
          not have an adequate substitute in existing bases of  
          discrimination is evidenced in Tisinger v. City of Bakersfield,  
          (2002) WL 275525.  In this case, Derek Tisinger, a single father  
          who worked as a firefighter for approximately 13 years, was at  
          the top of the list for promotion to captain but was passed over  
          because of his family responsibilities.  Tisinger filed a  
          complaint against the City of Bakersfield for discrimination on  
          the basis of "marital status" under FEHA.  He claimed that he  
          unfairly received negative evaluation for his use of sick leave  
          and trading work shifts - done properly under employer policy -  
          to take care of his children.  The claim was eventually denied  
          because while he argued that his status as a "single parent" was  
          the basis for discrimination, the Court held that Tisinger could  
          not provide sufficient evidence that discrimination occurred as  
          a result of "marital status."  Essentially, he was unable to  
          show that being a "single parent" in this case put him at a  
          disadvantage as opposed to being a "married parent."  In this  
          particular instance, Tisinger's promotional eligibility was more  
          closely linked to his relationship to his children - his  
          "parental status" or familial status" - rather than his "marital  
          status."








           Recent Report on "Family Responsibilities Discrimination" (FRD)
           
          According to a recent report entitled "Caregivers as a Protected  













                                                                  SB 404
                                                                  Page D
          Class?<1>":

               "Over the past five years, the issue of employment  
               discrimination based on family caregiving responsibilities  
               has grabbed the attention of legal and human resource  
               professionals nationwide.  Family responsibilities  
               discrimination, or FRD, is discrimination against employees  
               based on their responsibilities to care for family  
               members-including pregnancy discrimination, discrimination  
               against mothers and against fathers who actively  
               participate in caring for their children, and  
               discrimination against workers who care for aging parents  
               or ill or disabled spouses or family members. FRD can occur  
               when a new mother is denied a promotion based on the  
               assumption that she will no longer be as committed to work,  
               rather than her job performance; or when a father's  
               employer refuses to allow him to take paternity leave to  
               which he is legally entitled because "his wife should do  
               it"; or when an employee is fired for not meeting work  
               goals while he is on a legally protected family and medical  
               leave to care for an ailing parent.


               Also known as caregiver discrimination, FRD has become a  
               hot topic not only among attorneys and human resources  
               professionals, but also with workers, unions, employers,  
               courts, policymakers, and the press.  In 2006, the Center  
               for WorkLife Law (WLL) released the first study of FRD  
               lawsuits, analyzing more than 600 such suits filed between  
               1971 and 2005.  The 2006 study documented a 400% increase  
               in the number of FRD cases filed between 1996 and 2005 as  
               compared to the number filed in the decade prior, between  
               1986 and 1995.  To date, WLL has now collected data on more  
               than 2000 FRD lawsuits; preliminary analysis of this much  
               larger group of cases shows the number of FRD lawsuits  
               filed continuing to increase each year between 2006 and  
               2008.
                
               Recognizing the growing scope of the problem, in 2007, the  
               U.S. Equal Employment Opportunity Commission (EEOC) issued  
               -------------------------


          <1> Bornstein Stephanie & Robert J. Rathmell.  "Caregivers as  
          Protected Class?  The Growth of State and Local Laws Prohibiting  
          Family Responsibilities Discrimination."  The Center for  
          Worklife Law, University of California, Hastings College of the  
          Law (December 2009).






                                                                  SB 404
                                                                  Page E
               Enforcement Guidance on the topic of caregiver  
               discrimination, explaining in detail how existing federal  
               laws that prohibit sex and disability discrimination  
               protect family caregivers at work.  The Guidance raised the  
               profile of the problem of FRD considerably, in particular  
               catching the attention of employers and the attorneys who  
               represent them.  In April 2009, the EEOC followed up with a  
               second publication on the topic, which supplements the 2007  
               Guidance by providing examples of best practices for  
               employers to decrease the likelihood of EEO complaints and  
               remove barriers to equal employment for workers with  
               caregiving responsibilities. 


               The number of lawsuits alleging FRD is vast and  
               ever-growing; yet while FRD is actionable under many  
               theories in existing federal and state law, with a very few  
               exceptions, FRD is not expressly prohibited in most state  
               and in federal statutes.  This means that, barring the few  
               exceptions, there are no laws that protect caregivers or  
               people with family responsibilities as a specific group or  
               class from discrimination.  Instead, plaintiffs who have  
               sued their employers for FRD have successfully fit their  
               FRD-related claims into other legal theories in existing  
               state and federal law-for example as sex discrimination,  
               discrimination based on association with a person with a  
               disability, or a violation of state or federal family and  
               medical leave laws. 


               This report identifies that, while no federal law and only  
               a few state laws expressly prohibit FRD, at least 63 local  
               laws do-by specifically including parental or familial  
               status or family responsibilities as a protected  
               classification, like sex, race, religion, and so on, in  
               city or county codes that prohibit employment  
               discrimination.  The report presents the findings of a  
               survey by the Center for WorkLife Law of nearly 3,700 local  
               government laws (city and county ordinances and codes) that  
               found 63 local governments that explicitly prohibit  
               employment discrimination based on an employee's family  
               status or responsibilities."

           Other State Laws Cited by Supporters  










                                                                  SB 404
                                                                  Page F
          The University of California-Hastings Center for Worklife Law  
          cites the aforementioned study on laws prohibiting family  
          caregiver discrimination, which identified "63 local laws in 22  
          states that go beyond state and federal law to expressly  
          prohibit discrimination at work against those who are also  
          caregivers at home.

          In particular, that 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. Secs. 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. Sec.  
               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 accompany the  
               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  









                                                                  SB 404
                                                                  Page G
               complaint process.  (N.J. Admin. Code Sec. 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].)  

          Upon passage out of this Committee, this bill will be referred  
          to Assembly Judiciary Committee.

          ARGUMENTS IN SUPPORT  :

          The author writes the following in support of this bill:
          
            "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.

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










                                                                  SB 404
                                                                  Page H
          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 ten  
          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  :

          A coalition of opponents to this bill raises various concerns  
          about creating an additional characteristic under FEHA that  
          would have anti-discrimination protection.  First, the coalition  
          argues that this bill would be a "job killer" because expanding  
          FEHA protections for "familial status" will dramatically  
          increase the amount of frivolous litigation and will hamper  
          California employers' ability to conduct business and manage  
          employees.  Second, the coalition argues that the term "medical  
          care" in this bill is "undefined and therefore could be  
          liberally interpreted to include such tasks as administering  
          over the counter medication once a day or even driving a listed  
          family member to a doctor's appointment on a quarterly basis."   
          Third, the coalition argues that the term "supervisory care is  
          also ambiguous and would expand this proposed classification to  
          employees who  are not  actually providing any care to a covered  
          family member, but rather are 'supervising' the care the family  
          member receives."  (Emphasis in original.)

          Additionally, the opposition argues that this bill will have a  
          broad application that will impact both large and small  
          businesses.  These businesses will be subject to "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."  

          Finally, the opposition argues that "California already protects  
          employees from discrimination on the basis of sex, pregnancy,  
          medical condition, mental disability, or physical disability . .  
          . provides employees with leave to care for the serious medical  
          condition of family members . . . [and] requires 'kin care' that  
          mandates an employee be allowed to use at least half of any  









                                                                  SB 404
                                                                  Page I
          accrued sick leave to care for family members.  These various  
          leaves and protections are in addition to those provided by  
          federal law.  Given these existing protections, there is simply  
          no basis to include such a broad protected classification under  
          California law as proposed by [this bill], other than to  
          increase litigation opportunities."

           PRIOR LEGISLATION  :

          This bill is substantially similar, but not identical to, AB  
          1999 (Brownley) from 2012.  AB 1999 defined "familial status" to  
          include being an individual who is, who will be, or who is  
          perceived to be, a family caregiver.  AB 1999 was held in the  
          Senate Appropriations Committee.

          This bill is also similar, but not identical, to AB 1001  
          (Skinner) of 2009.  AB 1001 defined "familial status" as being  
          an individual who is or who will care for a family member.  AB  
          1001 was held under submission in the Assembly Appropriations  
          Committee.

          This bill is also similar, but not identical, to SB 836 (Kuehl)  
          of 2007.  Specifically, the final version of SB 836 defined  
          "familial status" as being an individual who is or who will be  
          "caring for or supporting" a family member.  SB 836 further  
          defined "caring for or supporting" as any of the following:  
          providing supervision or transportation; providing psychological  
          or emotional comfort and support; or addressing medical,  
          educational, nutritional, hygienic, or safety needs.

          That measure was vetoed by Governor Schwarzenneger, who stated  
          the following:

               "California has the strongest workplace laws against  
               discrimination and harassment in the country.  These laws  
               provide workers necessary protections from unfair  
               retaliation, discipline, and termination for matters  
               unrelated to job performance.

               Although I support these laws, expanding workplace  
               protections to include something as ambiguous as 'familial  
               status' is not appropriate.  This bill will not only result  
               in endless litigation to try and define what discrimination  
               on the basis of 'familial status' means, it will also  
               unnecessarily restrict employers' ability to make personnel  









                                                                  SB 404
                                                                  Page J
               decisions."








           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          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 Employment Lawyers Association (co-sponsor)
          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 Teachers Association
          California Teamsters Public Affairs Council
          California Women's Law Center
          Cancer Legal Resource Center
          Center for WorkLife Law (co-sponsor)
          Communications Workers of America, AFL-CIO, District 9
          Engineers & Scientists of California, IFPTE Local 20
          Equal Rights Advocates (co-sponsor)
          Excelligence Learning Corporation
          Family Caregiver Alliance
          Glendale City Employees Association
          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
          Mr. Donald Bentley
          National Association of Social Workers, California Chapter
          Organization of SMUD Employees









                                                                  SB 404
                                                                  Page K
          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
          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 
           
          Air Conditioning Trade Association
          Associated Builders and Contractors of California
          California Association of Joint Powers Authorities
          California Bankers Association
          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 









                                                                  SB 404
                                                                  Page L
          Rancho Cordova Chamber of Commerce
          Redondo Beach Chamber of Commerce
          South Bay Association of Chambers of Commerce
          Southwest California Legislative Council
          Tamrac, Inc.
          Tulare Chamber of Commerce
          Visalia Chamber of Commerce
          Western Electrical Contractors Association


           Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091