BILL ANALYSIS                                                                                                                                                                                                    Ó






                             SENATE JUDICIARY COMMITTEE
                             Senator Noreen Evans, Chair
                              2013-2014 Regular Session


          SB 516 (Steinberg)
          As Amended April 1, 2013
          Hearing Date: April 30, 2013
          Fiscal: Yes
          Urgency: No
          TW


                                        SUBJECT
                                           
                      Foreign labor contractors:  registration

                                      DESCRIPTION  

          Existing law requires foreign labor contractors to provide to a  
          foreign worker the material terms of a work contract, prohibits  
          a foreign labor contractor from asserting false, fraudulent, or  
          misleading information, and prohibits retaliation by a foreign  
          labor contractor against a foreign worker, who makes a claim  
          against the foreign labor contractor for violations of the law.  
          This bill would expand those provisions by establishing new  
          foreign labor contractor registration requirements, requiring  
          additional disclosures to foreign workers, and clarifying  
          retaliation prohibitions.

          This bill would also establish civil penalties, remedies,  
          including attorney's fees and costs, against individuals who  
          violate the provisions of this bill.  This bill would also  
          authorize joint and several liability between foreign labor  
          contractors and those persons using their services to obtain  
          foreign workers or employees who violate the provisions in this  
          bill.  This bill would authorize the Labor Commissioner to bring  
          a civil action on behalf of individuals harmed by foreign labor  
          contractors, and authorize an individual to file a civil action  
          for injunctive relief on behalf of the general public.

                                      BACKGROUND  

          In 1988, after hearing testimony that labor agents were  
          recruiting foreign workers by making false representations and  
          promises of employment, the Legislature enacted AB 4554  
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          (Roybal-Allard, Ch. 1450, Stats. 1988) to address some of the  
          abuses by labor agents.  AB 4554 contained disclosure and  
          contract requirements aimed at providing foreign labor workers  
          with information regarding their wages and other terms of  
          employment.

          Since 1988, abusive treatment and working conditions of foreign  
          labor workers has continued.  A recent study of labor practices  
          with respect to foreign labor workers in the United States found  
          that "regardless of visa category, employment sector, race,  
          gender or national origin, internationally recruited workers  
          face disturbingly common patterns of recruitment abuse,  
          including fraud, discrimination, severe economic coercion,  
          retaliation, blacklisting and, in some cases, forced labor,  
          indentured servitude, debt bondage and human trafficking."  (The  
          American Dream Up For Sale:  A Blueprint for Ending  
          International Labor Recruitment Abuse, The International Labor  
          Recruitment Working Group (Feb. 5, 2013)  
            [as of  
          Apr. 20, 2013], at p. 5.)  This report concluded that "disparate  
          rules and requirements for workers, employers and recruiters, as  
          well as lax enforcement of the regulations that do exist, allow  
          and even incentivize recruiters and employers to engage in  
          abuses."  (Id.)  

          According to the Office of Immigration Statistics within the  
          Department of Homeland Security, there were approximately  
          150,000 foreign temporary workers in California as of September  
          2011.  (Office of Immigration Statistics, 2011 Yearbook of  
          Immigration Statistics, U.S. Dept. of Homeland Security (Sept.  
          2012)  (as of Apr. 20, 2013),  
          Supplemental Table 3 Nonimmigrant Admissions (I-94 Only) by  
          Class of Admission and State or Territory of Destination: Fiscal  
          Year 2011.)  These foreign temporary workers maintain lawful  
          nonimmigration status and are authorized to work in California  
          under various classifications of federal work visas.  However,  
          concerns have arisen that the visa process itself has provided  
          opportunities for labor recruiters to exploit foreign workers. 

          Existing federal law, the Trafficking Victim Protection Act of  
          2000 (TVPA) (P.L. 106-386, reauthorized by P.L. 113-4) combats  
          the use of force, fraud, or coercion for the purpose of  
          subjecting an individual to involuntary servitude, peonage, debt  
          bondage, or slavery.  In order to further combat the growing  
          problem of foreign labor abuses, this bill would provide  
                                                                      



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          supplemental disclosure requirements, prohibitions on  
          mistreatment of foreign temporary workers, and authorize  
          additional enforcement actions.

          This bill was heard by the Senate Committee on Labor and  
          Industrial Relations on April 24, 2013, and passed out on a vote  
          of 4-0.

                                CHANGES TO EXISTING LAW
           
          1.  Existing law  provides contract and disclosure requirements  
            and employment protections regarding a foreign labor  
            contractor's recruitment or solicitation of non-agricultural  
            foreign labor employees.  (Bus. & Prof. Code Sec. 9998 et  
            seq.)

             Existing law  , for purposes of foreign labor contractor  
            statutes, defines "employment services" to include procuring  
            employment, marketing labor, or otherwise arranging the  
            employment or transportation, housing, and other living  
            accommodations for foreign workers either on behalf of those  
            workers or on behalf of another party.  (Bus. & Prof. Code  
            Sec. 9998.1(c).)
             
             This bill  would add "processing visa applications" to the  
            above definition and include services performed outside the  
            United States.
            
             This bill  , as of January 1, 2015, would require the Labor  
            Commissioner (commissioner) to establish registration  
            requirements for a person acting as a foreign labor  
            contractor.

             This bill  , as of July 1, 2015, would require a person acting  
            as a foreign labor contractor to register with the  
            commissioner.

             This bill  , as of August 1, 2015, would require the  
            commissioner to post on its Internet Web site the names and  
            contact information for all registered foreign labor  
            contractors and a list of the names and contact information  
            for any foreign labor contractors denied renewal or  
            registration.

             This bill  would prohibit the registration or renewal of a  
            person acting as a foreign labor contractor unless all of the  
                                                                      



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            following conditions are satisfied:
                 the person has executed a written application in a form  
               prescribed by the commissioner, subscribed and sworn to by  
               the person, and containing all of the following: (1) a  
               statement by the person of all facts required by the  
               commissioner concerning the applicant's character,  
               competency, responsibility, and the manner and means by  
               which the person proposes to conduct operations as a  
               foreign labor contractor if registered; (2) the names and  
               addresses of all persons, except bona fide employees on  
               stated salaries, financially interested, either as  
               partners, associates, or profit sharers, in the proposed  
               operation as a foreign labor contractor, together with the  
               amount of their respective interests; and (3) a declaration  
               consenting to the designation by a court or the  
               commissioner as an agent available to accept service of  
               summons in any action against the registrant, if the  
               registrant has left the jurisdiction in which the action is  
               commenced or otherwise has become unavailable to accept  
               service;
                 the commissioner, after investigation, is satisfied as  
               to the character, competency, and responsibility of the  
               person;
                 the person has deposited with the commissioner a surety  
               bond, as specified, in an amount based on the size of the  
               person's annual gross receipts from operations as a foreign  
               labor contractor; however, if the foreign labor contractor  
               has been the subject of a final judgment in a year in an  
               amount equal to that of the bond required, that contractor  
               shall be required to deposit an additional bond within 60  
               days, and shall be conditioned on the foreign labor  
               contractor complying with all foreign labor contractor  
               requirements and paying all damages to any person by  
               failure to do so, or by any violation, or false statements  
               or misrepresentations made in the registration process.   
               The bond shall also be payable for interest on wages and  
               for any damages arising from violation of applicable orders  
               of the Industrial Welfare Commission, and for any other  
               monetary relief awarded to a foreign worker as a result of  
               a violation of law by the foreign labor contractor; and
                 the person has paid to the commissioner a registration  
               fee of $500 plus a $10 dollar filing fee.
             
            This bill  would prohibit the registration of a foreign labor  
            contractor who was found by a court, the Secretary of Labor,  
            or the commissioner to have violated any of the following  
                                                                      



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            provisions:  (1) the federal Trafficking Victims Protection  
            Act of 2000 (Division A, Public Law 106-386), as amended  
            (TVPA); (2) Labor Code Sections 1682 to 1699; (3) Penal Code  
            Section 236.1; or (4) an applicable guest worker program.
           

           2.  Existing law  requires every contract for the provision of  
            employment services to foreign workers to be written in the  
            primary language of the foreign worker and include all  
            material terms including, but not limited to, any and all  
            compensation or consideration to be provided to the foreign  
            worker in exchange for that worker's labor or services, any  
            wages, housing, transportation, other living accommodations,  
            and other benefits which are to be provided.  (Bus. & Prof.  
            Code Sec. 9998.2.)

             This bill  would repeal the above provision.

             This bill  would require the Labor Commissioner, by January 1,  
            2015, to establish terms and procedures for the new disclosure  
            requirements provided in this bill.

             This bill  would require a person using the services of a  
            foreign labor contractor to procure foreign workers or  
            employees to disclose to the Labor Commissioner such use of a  
            foreign labor contractor.  Such disclosure must include, but  
            is not limited to:
                 the names and addresses of all persons (except bona fide  
               employees on stated salaries) financially interested,  
               either as partners, associates, or profit sharers, in the  
               person's business enterprise, together with the amount of  
               their respective interests;
                 a declaration consenting to the judicial designation of  
               the Labor Commissioner as an agent available to accept  
               service of summons in any action against the person, if the  
               person has left the jurisdiction in which the action is  
               commenced or otherwise has become unavailable to accept  
               service;
                 a copy of the foreign labor contractor's disclosure to  
               all foreign workers or employees obtained by the person  
               through the services of the foreign labor contractor or its  
               agents; and
                 information about the steps the person has taken to  
               verify the accuracy of the information provided in the  
               foreign labor contractor's disclosure.

                                                                      



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             This bill  would prohibit a person from knowingly entering into  
            an agreement for the services of a foreign labor contractor  
            that is not registered.
           
            This bill  would require a person using or anticipating using  
            the services of a foreign labor contractor to deposit with the  
            Labor Commissioner a surety bond in an amount based on the  
            size of the person's annual payroll for all employees, as  
            specified, and provide that if the person has been the subject  
            of a final judgment in a year in an amount equal to that of  
            the bond required, that person must deposit an additional bond  
            within 60 days, and use of the bond will be conditioned on the  
            person complying with all the registration requirements and  
            paying all damages to any person by failure to do so, or by  
            any violation, or false statements or misrepresentations made  
            in complying with the registration requirements.  The bond  
            shall also be payable for interest on wages and for any  
            damages arising from violation of applicable orders of the  
            Industrial Welfare Commission, and for any other monetary  
            relief awarded to a foreign worker as a result of a violation  
            of law by the person.
             
            This bill  would require a foreign labor contractor to  
            ascertain the primary language of each foreign worker and  
            disclose in writing in English and in the primary language of  
            the foreign worker being recruited, at the time of the foreign  
            worker's recruitment, the following information to each  
            foreign worker, who is recruited for employment:
                 the identity of the employer and the identity of the  
               person conducting the recruiting on behalf of the employer,  
               including any subcontractor or agent involved in the  
               recruiting;
                 a signed copy of the work contract, including all  
               assurances and terms and conditions of employment, from the  
               prospective employer for whom the foreign worker is being  
               recruited, including the compensation to be paid, the place  
               and period of employment, a description of the type and  
               nature of employment activities, any withholdings or  
               deductions from compensation, and any penalties for  
               terminating employment;
                 the type of visa under which the foreign worker is to be  
               employed, the length of time the visa is valid, and the  
               terms and conditions under which the visa will be renewed  
               with a clear statement of whether the employer will secure  
               renewal of the visa or if renewal must be obtained by the  
               foreign worker, and any expenses associated with securing  
                                                                      



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               or renewing the visa;
                 an itemized list of any costs or expenses to be charged  
               to the foreign worker, including, but not limited to, the  
               costs of housing or accommodation, transportation to and  
               from the worksite, meals, medical examinations, health care  
               or safety equipment costs, and any other costs, expenses,  
               or deductions to be charged the foreign worker; 
                 a statement, in a form specified by the commissioner,  
               that does each of the following:  (1) states that no  
               foreign labor contractor, or agent or employee of a foreign  
               labor contractor, can lawfully assess any fee, including  
               visa fees, processing fees, transportation fees, legal  
               expenses, placement fees, and other costs to a foreign  
               worker for employment services, and that the employer may  
               bear the costs or fees for the foreign labor contractor,  
               but that these fees cannot be assessed to the foreign  
               worker; (2) explains that no additional requirements or  
               changes may be made from the terms of the contract  
               originally signed by the foreign worker, unless the foreign  
               worker is provided at least 48 hours to review and consider  
               the additional requirements or changes and the foreign  
               worker gives specific consent, voluntarily and without  
               threat of penalty, to each additional requirement or  
               change; and (3) describes the protections afforded the  
               foreign worker under California law and by the TVPA, and  
               any applicable guest worker program, including relevant  
               information about the procedure for filing a complaint  
               under this chapter, and the telephone number for the  
               national human trafficking resource center hotline; 
                 any education or training to be provided or required,  
               including the nature, timing, and cost of training and the  
               person who will pay training costs, whether the training is  
               a condition of employment, continued employment, or future  
               employment, and whether the foreign worker will be paid or  
               remunerated during the training period, including the rate  
               of pay or remuneration; and
                 any other information that the commissioner may require  
               by regulation.

             This bill  would prohibit a foreign labor contractor, or the  
            agent, subcontractor, or employee of a foreign labor  
            contractor, or a person using the services of a foreign labor  
            contractor to obtain foreign workers or employees, from  
            assessing any fee, including, but not limited to, visa fees,  
            processing fees, transportation fees, legal expenses,  
            placement fees, and other costs, to a foreign worker for  
                                                                      



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            employment services.

             This bill  would prohibit requiring a foreign worker to pay any  
            costs or expenses that are not customarily assessed against  
            all workers similarly employed, and prohibit requiring a  
            foreign worker to pay costs or expenses prior to the  
            commencement of work.  This bill would limit the amount  
            charged for providing housing to the foreign worker to the  
            market rate for similar housing.
           
           3.  Existing law  prohibits retaliation against a foreign worker  
            for exercising any right provided under the foreign labor  
            contractor laws.  (Bus. & Prof. Code Sec. 9998.6.)

             Existing law  makes it a misdemeanor, punishable by a fine of  
            up to $1,000 and/or six-month imprisonment, for causing or  
            inducing another to violate the foreign labor contractor laws  
            authorizes the commissioner or person harmed by a violation of  
            the foreign labor contractor laws.  (Bus. & Prof. Code Sec.  
            9998.8(a).)

             Existing law  authorizes the commissioner or person harmed by a  
            violation of the foreign labor contractor laws to bring an  
            action for injunctive relief and damages, and authorizes an  
            award of damages, costs, and reasonable attorney's fees in an  
            amount no less than $500 to the prevailing victim.  (Bus. &  
            Prof. Code Sec. 9998.8(b).)

             This bill  would also prohibit intimidation, threats,  
            restraint, coercion, discharge, and discrimination against a  
            foreign worker.

             This bill  would authorize a civil penalty, between $1,000 and  
            $25,000, per violation, in addition to any other civil  
            remedies available to the commissioner or person harmed by a  
            violation of the foreign labor contractor laws.
             This bill  would authorize the commissioner, in addition to the  
            harmed person, to:
                 bring an action for injunctive relief against a person  
               who violates the foreign labor contractor laws and, upon  
               prevailing, recover costs and reasonable attorney's fees;
                 bring an action for damages, against the person to  
               recover the greater of actual damages or $500 per employee  
               per violation for an initial violation, and $1,000 per  
               employee for each subsequent violation, and, upon  
               prevailing in the action, recover costs and reasonable  
                                                                      



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               attorney's fees; and
                 enforce the liability on the bonds of the foreign labor  
               contractor or employer's bonds.
             
            This bill  would make foreign labor contractors and those  
            persons using their services to obtain foreign workers or  
            employees jointly and severally liable.

             This bill  would state that nothing in the above provisions  
            should be construed to preempt or alter any other rights or  
            remedies, including any causes of action, available under any  
            other federal or state law. 

             This bill  would authorize the commissioner, or deputies and  
            representatives authorized by the commissioner, to take  
            assignments of actions on the bonds and prosecute actions on  
            behalf of individuals who are harmed by violations of the  
            foreign labor contractor laws and who, in the judgment of the  
            commissioner, are financially unable to hire an attorney.

             This bill  would authorize a person, who, upon information and  
            belief, claims a violation of the foreign labor contractor  
            laws, to bring a civil action for injunctive relief on behalf  
            of the general public.  This bill would authorize this person,  
            upon prevailing in such action, to recover attorney's fees and  
            costs.
             
            This bill  would make various related legislative findings and  
            declarations.

                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
            
            Foreign labor contractors are increasingly relied upon to  
            facilitate the migration of labor from one country to another.  
             California is the leading destination state in the U.S. for  
            temporary foreign workers with over 100,000 temporary workers  
            annually.

            While many contractors behave ethically and lawfully, others  
            do not. They misuse U.S. visa programs to exploit workers,  
            often charging exorbitant fees for their services, forcing  
            workers into debt bondage, falsifying documents, and deceiving  
                                                                      



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            workers about the terms and conditions of proposed employment.  
             
            Unscrupulous foreign labor contractors threaten workers with  
            blacklisting, discrimination, and other forms of retaliation,  
            including the imposition of additional fees and violence  
            against themselves, family members, or their home communities,  
            for reporting abuses or seeking to escape their fraudulently  
            induced servitude.  Legislation is needed to prevent human  
            trafficking and forced labor of foreign workers in California  
            resulting from the exploitative and abusive practices of  
            foreign labor contractors.

          2.  Protection for foreign workers from discrimination and  
            retaliation  

          Existing law prohibits retaliation against a foreign worker for  
                                                                                 exercising any right provided under the foreign labor contractor  
          laws.  (Bus. & Prof. Code Sec. 9998.6.)  This bill would clarify  
          that intimidation, threats, restraint, coercion, discharge, and  
          discrimination against a foreign worker are also unlawful.  This  
          bill would also prohibit these actions from being taken against  
          the foreign worker's family members.

          The Coalition to Abolish Slavery & Trafficking (CAST), sponsor  
          of this bill, asserts that foreign workers entering California  
          on temporary work visas are vulnerable to exploitation and human  
          trafficking.  Foreign labor contractors, after making false  
          promises to foreign workers to entice them to work in  
          California, employ intimidation, threats, restraint, and  
          coercion against foreign workers to enslave them in debt bondage  
          by charging exorbitant recruitment fees to the foreign worker,  
          who is then forced to work to pay off of the recruitment fees.   
          CAST provides the following examples:

            In 2012, six Mexican workers were fraudulently recruited to  
            come to the United States to work in forestry.  The recruiter  
            came to their small town in rural Mexico to convince the  
            workers to work in Northern California.  The workers were  
            promised a good salary and free room and board in the United  
            States (U.S.).  Relying on these promises the workers entered  
            the [U.S.] on H2B visas [nonimmigrant visas primarily issued  
            to foreign nationals to enter into the U.S. temporarily and  
            engage in nonagricultural employment which is seasonal,  
            intermittent, a peak load need, or a one-time occurrence]  
            arranged by the recruiters and traveled to California.   
            However, once in the [U.S.], their conditions were vastly  
                                                                      



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            different than promised.  They were charged extremely high  
            deductions for room and board and were often not paid for  
            their labor.  They were forced to live and work in dangerous  
            conditions, sleeping in tents in the wilderness, living  
            without electricity, and denied clean drinking water.  The  
            workers were kept in terror of their traffickers, who were  
            armed and repeatedly threatened to shoot and kill the workers  
            if they did not comply with the traffickers' demands.  

            [Ten] Filipino hotel workers . . . were fraudulently induced  
            to come to the [U.S.] on H2B visas and work in California,  
            Arizona and Florida.  The workers were induced to take out  
            high interest loans to pay the thousands of dollars charged by  
            the traffickers as placement fees.  They were promised a good  
            salary, free room and board, and the chance to receive their  
            lawful permanent residence.   Once in the [U.S.], the workers  
            were not paid what they were promised and faced high  
            deductions for room and board.  When the workers complained  
            about their wages and attempted to seek other work, they were  
            threatened by their employers who repeatedly told them that  
            they would be arrested and deported if they left their jobs.   
            Terrified[,] the workers knew that they had no choice but to  
            continue to work for their traffickers against their will. 

            More than 250 Thai workers were fraudulently recruited to come  
            to the [U.S.] on temporary work visas.  The recruiters induced  
            the workers to pay recruitment fees as high as $25,000 and  
            promised them lucrative jobs in agriculture work in the  
            [U.S.].  In the [U.S.], they were forced to work on farms in  
            Washington State and Hawaii by an agency that has offices in  
            California.  The traffickers confiscated the workers'  
            passports and threatened them with deportation if they  
            complained.   The Thai workers were often forced to live [in]  
            housing infested with rats and insects and [were] forbidden  
            from leaving the farm.  They endured physical violence and  
            threats, which left them terrified of their traffickers.  

          The author further asserts that "businesses are profiting at the  
          expense of enslaved workers, often unwittingly.  Businesses need  
          the additional information and support of the registration  
          systems to ensure they protect both [U.S.] workers [as] well as  
          those recruited internationally by foreign labor recruiters.   
          Companies who behave ethically and use registered foreign labor  
          recruiters will benefit from the system and not be liable.   
          Workers will benefit as well since they will be provided more  
          information and access to relief if they are abused while  
                                                                      



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          working in California.  Moreover, in a broader context,  
          subjecting all employers who employ foreign workers to a common  
          standard will level the competitive playing field for  
          all-particularly the many businesses who do treat workers  
          fairly."

          Importantly, existing law provides retaliation protection for  
          foreign employees.  By clarifying that, in addition to the broad  
          category of retaliation, a foreign worker may not be  
          specifically intimidated, threatened, restrained, coerced,  
          discharged, or in any manner discriminated against for  
          exercising his or her rights under the law.  This bill would  
          also protect the foreign worker from retaliatory threats of harm  
          against the worker's family members. 

          3.  Civil penalties and remedies to plaintiff  

          Existing law authorizes the commissioner or person harmed by a  
          violation of the foreign labor contractor laws to bring an  
          action for injunctive relief and damages, and authorizes an  
          award of damages, costs, and reasonable attorney's fees in an  
          amount no less than $500 to the prevailing victim.  (Bus. &  
          Prof. Code Sec. 9998.8(b).)  This bill would modify this  
          provision and authorize a civil penalty, between $1,000 and  
          $25,000, per violation, to be assessed against a person in  
          violation of the foreign labor contractor laws, and would  
          authorize the Labor Commissioner or foreign worker to:
           bring an action for injunctive relief against a person who  
            violates the foreign labor contractor laws and, upon  
            prevailing, recover costs and reasonable attorney's fees;
           bring an action for damages, against the person to recover the  
            greater of actual damages or $500 per employee per violation  
            for an initial violation, and $1,000 per employee for each  
            subsequent violation, and, upon prevailing in the action,  
            recover costs and reasonable attorney's fees; and
           enforce the liability on the bonds of the foreign labor  
            contractor or employer.

          The author argues that a statutory civil penalty is necessary to  
          offset the large amounts of money that many foreign workers lose  
          as a result of the predatory tactics utilized by unscrupulous  
          foreign labor contractors, and to serve as a deterrent to those  
          defrauding these workers.  Further, existing law authorizes farm  
          workers to file an action against an unlawful employer for  
          injunctive relief, damages, and attorney's fees.  (See Lab. Code  
          Secs. 1697(b) and 1697.1(c).)  Notably, this bill would provide  
                                                                      



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          the same rights of action and remedies as the Legislature has  
          already provided to farm workers. 
                     
          4.  Joint and several liability  

          This bill would make foreign labor contractors, and those  
          persons using their services to obtain foreign workers or  
          employees, jointly and severally liable for violations of the  
          foreign labor contractor laws.  This provision is similar in  
          concept to Labor Code Section 2753, which imposes joint and  
          several liability on a person who, for money or other valuable  
          consideration, knowingly advises an employer to treat an  
          individual as an independent contractor to avoid employee  
          status.

          Under this bill, a foreign labor contractor would be required to  
          register with the Labor Commissioner and would not be registered  
          or renewed unless the foreign labor contractor executes a  
          written application in a form prescribed by the commissioner.  
          This bill would also prohibit the registration of a foreign  
          labor contractor who was found by a court, the Secretary of  
          Labor, or the commissioner to have violated any of the following  
          provisions:  (1) the federal Trafficking Victims Protection Act  
          of 2000 (Division A, Public Law 106-386), as amended (TVPA); (2)  
          Labor Code Sections 1682 to 1699; (3) Penal Code Section 236.1;  
          or (4) an applicable guest worker program.

          If the Labor Commissioner, after investigation, is satisfied as  
          to the character, competency, and responsibility of the person,  
          the person posts a surety bond, and pays the registration fee,  
          the foreign labor contractor may be registered with the Labor  
          Commissioner.  The contractor would then be listed on the Labor  
          Commissioner's Internet Web site as a registered foreign labor  
          contractor.  

          An employer seeking the assistance of a foreign labor contractor  
          to hire foreign workers would then be able to check the Labor  
          Commissioner's Web site to see which foreign labor contractors  
          have complied with the law and are registered, and which have  
          been denied registration.  In the event an employer uses an  
          unregistered foreign labor contractor and is then subject to  
          liability for the contractor's unlawful conduct, the employer is  
          arguably partially responsible to the plaintiff because the  
          employer could have researched the Internet Web site and found a  
          registered contractor with whom to contract.  This bill, by  
          making both the foreign labor contractor and the employer  
                                                                      



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          jointly and severally liable for violations of the foreign labor  
          contractor law, would provide additional deterrence from  
          unlawful conduct by unscrupulous foreign labor contractors and  
          employers who use their services.

          5.  Private attorney general right of action  

          This bill would authorize a person who, upon information and  
          belief, claims a violation of the foreign labor contractor laws  
          to bring a civil action for injunctive relief on behalf of the  
          general public.  This bill would authorize this person, upon  
          prevailing in such action, to recover attorney's fees and costs.  
           This provision is substantially similar to the private attorney  
          general right of action provided to protect farm workers from  
          unlawful employment abuses.  (See Lab. Code Sec. 1697.1(d).)

          This bill would also authorize the Labor Commissioner, or  
          deputies and representatives authorized by the Labor  
          Commissioner, to take assignments of actions on the foreign  
          labor contractor's bonds and prosecute actions on behalf of  
          foreign workers who are harmed by violations of the foreign  
          labor contractor laws and who, in the judgment of the  
          commissioner, are financially unable to hire an attorney.  This  
          provision is also modeled after the farm worker protections in  
          Labor Code Section 1693.

          Arguably, providing for both an action by the Labor Commissioner  
          action and by a person on behalf of harmed workers is warranted  
          in order to effectively deter the debt bondage, exploitation,  
          and abuse of these disenfranchised workers.  Because these  
          workers are often in fear for their physical and financial  
          wellbeing, they may not have the ability (or resources, given  
          the reported wage and recruitment fee abuse of these workers) to  
          file an action on their own behalf.  Further, governmental  
          entities may not have the resources or time to go after all  
          foreign labor contractors and employers who violate these  
          worker's rights.  

          6.  Amendments taken in prior committee  

          When this bill was heard by the Senate Committee on Labor and  
          Industrial Relations, the author agreed to take the following  
          amendment, which would provide explicit notice requirements, in  
          this Committee. 

             Author's amendment  :
                                                                      



          SB 516 (Steinberg)
          Page 15 of ?




            On page 10, between lines 8 and 9, insert the following:

               (d) No additional requirements or changes may be made from  
               the terms of the contract originally signed by the foreign  
               worker, unless the foreign worker is provided at least 48  
               hours to review and consider the additional requirements or  
               changes and the foreign worker gives specific consent,  
               voluntarily and without threat of penalty, to each  
               additional requirement or change.


           Support  :  Alliance to End Slavery and Trafficking; American  
          Association of University Women - California; California Rural  
          Legal Assistance Foundation; Food Chain Workers Alliance;  
          National Council of Jewish Women - California; Pilipino Workers  
          Center of Southern California; Polaris Project; Religious of the  
          Sacred Heart of Mary; Religious Sisters of Charity; Thai  
          Community Development Center

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Coalition to Abolish Slavery and Trafficking

           Related Pending Legislation  :  None Known

           Prior Legislation  :  AB 4554 (Roybal-Allard, Ch. 1450, Stats.  
          1988) See Background.

           Prior Vote  :  Senate Committee on Labor and Industrial Relations  
          (Ayes 4, Noes 0)

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