BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 404
                                                                  Page  1

          Date of Hearing:   August 14, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 404 (Jackson) - As Amended:  July 3, 2013 

          Policy Committee:                             Labor and  
          Employment   Vote:                            5-2
                       Judiciary                              7-3

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY 

          This bill adds "familial status" to the protected categories of  
          the employment provisions of the Fair Employment and Housing Act  
          (FEHA).  Specifically, this bill: 

          Defines familial status as an individual who provides medical or  
          supervisory care to a family member.  For the purposes of this  
          definition, family member means any of the following: child,  
          parent, spouse, domestic partner, and a parent-in-law. 

           FISCAL EFFECT  

          1)GF administrative costs, of approximately $50,000, to the  
            Department of Fair Employment and Housing (DFEH) to enforce  
            this measure.    

          2)Potential, GF administrative costs, likely $100,000, to DFEH  
            to conduct a regulatory process to implement this measure.   
            Regulations may be needed if questions arise regarding the  
            definitions of medical and supervisory.  

           COMMENTS  

           1)Background  .  Under FEHA, individuals are protected against  
            discrimination in employment, housing, public accommodation  
            and services provided by business establishments on the basis  
            of specified characteristics, including age, ancestry, sex  
            (gender), race, color, national origin, religion, sexual  
            orientation, marital status, genetic information, medical  
            condition, and disability. 








                                                                  SB 404
                                                                  Page  2


            Individuals who claim discrimination may file a complaint with  
            the DFEH within one year of the alleged incident.  They can  
            also directly seek remedies via a lawsuit filed with the  
            court.     

            Existing law establishes the California Family Rights Act  
            (CFRA), which requires employers with 50 or more employees to  
            provide, upon request, up to 12 weeks of protected unpaid  
            leave during any 12-month period for specified purposes,  
            including childbirth; placement of a child with respect to  
            adoption or foster care; care of a parent, spouse or child  
            with a serious health condition; the employee's own serious  
            health condition.

           2)Purpose  .  According to the author, "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.'  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."

           3)Opposition  .  Several opponents, including the CalChamber, the  
            California Restaurant Association, the California Hotel and  
            Lodging Association, the California Farm Bureau, and the  
            California Manufacturers and Technology Association, argue  
            providing specified employee protections based upon familial  
            status unfairly subjects them to costly litigation.   
            Specifically, these organizations state in a coalition letter,

            "The term 'medical' care 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. Moreover, '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 'supervising' the care the family member receives.  








                                                                  SB 404
                                                                  Page  3

            Furthermore, SB 404 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.'"

           4)Previous legislation  .  

             a)   AB 1999 (Brownley), similar to this bill, was held on  
               the Senate Appropriations Committee's  Suspense File in  
               August 2012.  

             b)   AB 2039 (Swanson) amended the CFRA by expanding  
               permissible family and medical leave to cover care for an  
               independent adult child, sibling, grandparent, grandchild,  
               domestic partner, or parent-in-law with a serious health  
               condition.  This bill was held on the Senate Appropriations  
               Committee's Suspense File in August 2012.    


           Analysis Prepared by  :    Kimberly Rodriguez / APPR. / (916)  
          319-2081