BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 655
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          SENATE THIRD READING
          SB 655 (Wright)
          As Amended  September 6, 2013
          Majority vote 

           SENATE VOTE  :21-13  
          
           JUDICIARY           7-3                                         
           
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          |Ayes:|Wieckowski, Alejo, Chau,  |     |                          |
          |     |Dickinson, Garcia,        |     |                          |
          |     |Muratsuchi, Stone         |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Wagner, Gorell,           |     |                          |
          |     |Maienschein               |     |                          |
          |     |                          |     |                          |
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          SUMMARY  :  Codifies and revises a recent California Supreme Court  
          ruling that an employee shall prevail under the Fair Employment  
          and Housing Act (FEHA) for the purpose of specified remedies if  
          the employee proves that a protected characteristic was a  
          substantial motivating factor in the challenged employment  
          action.  Specifically,  this bill  :  

           1)Provides that for purposes of a claim of an unlawful  
            employment practice under FEHA, the employee shall prevail if  
            he or she proves that a protected characteristic was a  
            substantial motivating factor in the action against the  
            employee.  

           2)Defines "substantial motivating factor" as a factor that  
            contributed to the employment action or decision.  The factor  
            must be more than a remote or trivial factor, but need not be  
            the only or main cause of the employment action or decision.  

           3)Provides that if an employer proves as an affirmative defense  
            that it would have taken the same adverse employment action  
            against an employee absent consideration of the protected  
            characteristic, at the same time, for lawful reasons, the  
            court shall impose a statutory penalty of $25,000 to the  
            employee.  

           4)Provides that an employee shall not be entitled to  








                                                                  SB 655
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            reinstatement, back pay, compensatory damages, or declaratory  
            relief.   
           
           FISCAL EFFECT  :  None
           
          COMMENTS  :  This bill addresses the remedies available to a  
          person when an employer has unlawfully discriminated on the  
          basis of prohibited factors and activities, such as race or sex,  
          but the employer also has a legitimate reason for the action.   
          In these "mixed-motive" cases, the California Supreme Court  
          recently ruled in Harris v. City of Santa Monica (2013) 56  
          Cal.4th 203 that the employee has prevailed because the  
          employer's action violates the policy of the FEHA, but allowed  
          the employer a partial defense against liability for full  
          damages.  Federal law is similar.  This bill would largely  
          codify the principles reflected in the Harris case by allowing  
          the partial defense with some revision of the recoverable  
          remedies.  

          The author explains the bill as follows:  SB 655 follows the  
          court's ruling in Harris [v. City of Santa Monica (2013) 56  
          Cal.4th 203] by recognizing and addressing mixed motive  
          discriminatory practices in the workplace and provides clarity  
          and guidance for the "substantial factor" standard that was  
          adopted, but left undefined by the court.  This bill would  
          codify the definition of "substantial factor" consistent with  
          the California Supreme Court's previous decisions interpreting  
          this phrase (See Bockrath v. Aldrich Chemical Co., Inc. (1999)  
          21 Cal.4th 71, Rutherford v. Owens-Illinois, Inc. (1997) 16  
          Cal.4th 953).  SB 655 will also restore the FEHA's prescriptive  
          function to provide effective remedies for redressing,  
          preventing, and deterring unlawful discrimination.  By  
          establishing a civil penalty of up to $25,000 for discrimination  
          that is proven to be a "substantial factor" in a negative  
          employment action and by providing non-economic relief for the  
          aggrieved worker, this bill strikes the right balance in  
          preventing and deterring unlawful employment practices and  
          redressing their adverse effects.  It is expected that courts  
          will impose a $25,000 penalty unless there are overriding  
          factors militating against it.  

          In Harris, the employee proved the existence of a discriminatory  
          purpose behind the challenged employment action.  However, the  
          employer also proved the existence of an additional  
          nondiscriminatory purpose.  Relying on cognate federal law, the  








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          Harris court held that an employee prevails under the FEHA when  
          the employer acts on the basis of prohibited factors, but the  
          employer has a partial defense against the otherwise available  
          remedies.  The court held that "[i]n light of the FEHA's  
          purposes, especially its goal of preventing and deterring  
          unlawful discrimination, we conclude that a same-decision  
          showing by an employer is not a complete defense to liability  
          when the plaintiff has proven that discrimination on the basis  
          of a protected characteristic was a substantial factor  
          motivating the adverse employment action."  (Harris, 56 Cal.4th  
          at 225.)  

          This bill would codify the court's holding that to prevail in a  
          mixed-motive employment discrimination case brought under the  
          FEHA the employee must show that an unlawful discriminatory  
          purpose was a substantial factor in the adverse employment  
          action.  The court discussed but did not define the term  
          "substantial motivating factor."  This bill provides the  
          definition, consistent with the court's discussion in Harris and  
          similar "substantial factor" cases.

          Harris held that the remedies in a mixed-motive case include  
          declaratory relief, injunctive relief, and attorney's fees and  
          costs, but the employee was not entitled to damages or an order  
          requiring any admission, reinstatement, hiring, promotion, or  
          payment.  This bill largely adopts that holding with certain  
          revisions and clarifications regarding available damages.

          The bill also clarifies that the limitation on damages for  
          mixed-motive cases does not affect the existing rights and  
          remedies provided under the FEHA when an employer does not plead  
          and prove a mixed motive defense.  
           

          Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334 



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