BILL ANALYSIS Ó AB 202 Page 1 ASSEMBLY THIRD READING AB 202 (Gonzalez) As Amended April 15, 2015 Majority vote -------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | |----------------+------+---------------------+----------------------| |Labor |5-2 |Roger Hernández, |Harper, Patterson | | | |Chu, Low, McCarty, | | | | |Thurmond | | | | | | | |----------------+------+---------------------+----------------------| |Arts |5-2 |Calderon, Chu, |Obernolte, Hadley | | | |Levine, Medina, | | | | |Nazarian | | | | | | | |----------------+------+---------------------+----------------------| |Appropriations |12-5 |Gomez, Bloom, Bonta, |Bigelow, Chang, | | | |Calderon, Daly, |Gallagher, Jones, | | | |Eggman, Eduardo |Wagner | | | |Garcia, Holden, | | | | |Quirk, Rendon, | | | | |Weber, Wood | | | | | | | -------------------------------------------------------------------- SUMMARY: Provides that specified professional sports "cheerleaders" shall be deemed to be employees for state employment law purposes. Specifically, this bill: AB 202 Page 2 1)Provides that, notwithstanding any other law, for purposes of the provisions of state law that govern employment, a cheerleader that is utilized by a California-based professional sports team directly or through a labor contractor during its exhibitions, events or games shall be deemed to be an employee. 2)Defines "cheerleader" to mean an individual who performs acrobatics, dance or gymnastics exercises on a recurring basis. However, the term does not include an individual who is not otherwise affiliated with the sports team and is utilized no more than one time in a calendar year. 3)Defines "professional sports team" to mean a team at either a minor or major league level in the sport of baseball, basketball, football, ice hockey, or soccer. 4)Defines "California-based team" to mean a team that plays a majority of its home games in California. 5)Provides that the professional sports team shall ensure that the cheerleader is classified as an employee. FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill will result in minor and absorbable costs to the Employment Development Department, the Department of Fair Employment and Housing, and the Department of Industrial Relations. COMMENTS: This bill addresses an issue that has garnered significant media attention over the last year - the treatment of professional sports cheerleaders. A number of lawsuits (including AB 202 Page 3 one against the Oakland Raiders) have been filed recently alleging violations of employment laws - including minimum wage, overtime, meal and rest periods, and illegal deductions - regarding professional sports cheerleaders. Other claims have been made that such cheerleaders have been misclassified as independent contractors rather than employees, thereby depriving them of important employment law protections. According to the author, the widespread practice of worker misclassification has resulted in a failure to justly compensate cheerleaders. This bill will ensure that professional cheerleaders will no longer be misrepresented as independent contractors by statutorily defining them as "employees" entitled to the same legal rights and benefits as employees. This bill would establish statutory employment status for covered cheerleaders. This would not impact the application of protections that apply to cheerleaders prior to the passage of this bill nor impact prior claims or settlements under existing law or existing theories of liability. Supporters argue that this bill will would clarify that a professional cheerleader is provided the same rights and benefits of an employee under state law and is not improperly misclassified as an independent contractor. As a result, professional sport cheerleaders would be guaranteed a legal wage for attending and participating in team practices, rehearsals, preparations, meetings and required workouts. In addition, they would also be covered for all required appearances at corporate, community and charity events. There is no opposition on file. AB 202 Page 4 Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0000268