BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 272


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          Date of Hearing:   April 14, 2015


                           ASSEMBLY COMMITTEE ON JUDICIARY


                                  Mark Stone, Chair


          AB 272  
          (Lackey) - As Amended March 12, 2015


                    PROPOSED CONSENT (As Proposed to be Amended) 


          SUBJECT:  California Fair Employment and Housing Act


          KEY ISSUE:  Should the anti-discrimination protections of the  
          Fair Employment and Housing Act be extended to volunteer reserve  
          and auxiliary peace officers? 


                                      SYNOPSIS


          The bill would declare that volunteer reserve and auxiliary  
          peace offers are "employees" for purposes of California's Fair  
          Employment and Housing Act (FEHA).  FEHA prohibits  
          discrimination in employment on the basis of certain  
          characteristics, including race, gender, sexual orientation,  
          religion, and disability.  Although existing law defines  
          "employee" broadly, the courts have generally held that the term  
          "employee" only applies to those who receive compensation for  
          services.  Last year's AB 1443 (Chapter 302, Stats. of 2014)  
          provided that the anti-harassment protections of FEHA applied to  
          unpaid interns and volunteers, but the other anti-discrimination  
          provisions of FEHA still do not apply to volunteers. This bill  








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          is largely a response to Estrada v. City of Los Angeles, a 2013  
          appellate court finding that a volunteer reserve police officer  
          is not an employee for purposes of FEHA's anti-discrimination  
          provisions, notwithstanding the fact that the city provided  
          Estrada and other reserve peace officers workers' compensation  
          benefits.  As introduced this bill would have added reserve  
          peace officers to the definition of employee in FEHA.  However,  
          rather than add reserve peace officers (alone among all  
          volunteers) to the otherwise general definition of employee in  
          FEHA, the author agreed in the Assembly Labor and Employment  
          Committee to achieve the same end by amending the Penal Code  
          section that authorizes reserve and auxiliary peace officers to  
          specify that they are employees for purposes of FEHA.  Because  
          of timing considerations, the amendments agreed to in the  
          Assembly Labor and Employment Committee will be formally adopted  
          in this Committee.  The analysis reflects those amendments.   
          There is no known opposition to this bill.   




          SUMMARY:  Provides that any person deputized or appointed by  
          the proper authority as a reserve deputy sheriff or a reserve  
          city police officer, is an employee of the county, city, city  
          and county, town, district or other such proper authority for  
          all purposes of the California Fair Employment and Housing  
          Act. 


          EXISTING LAW:  


          1)Prohibits, under FEHA, harassment and discrimination in  
            employment because of race, color, religion, sex, gender,  
            gender identity, gender expression, sexual orientation,  
            marital status, national origin, ancestry, mental and physical  
            disability, medical condition, age, pregnancy, denial of  
            medical and family care leave, or pregnancy disability leave.   
            Also prohibits retaliation for exercising one's right to  








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            report or protest such discrimination or harassment.   
            (Government Code Sections 12940, 12945, 12945.2.) 


          2)Provides for purposes of FEHA that an "employee" does not  
            include any individual employed by his or her parents, spouse,  
            or child, or any individual employed under a special license  
            in a nonprofit sheltered workshop or rehabilitation facility.   
            (Government Code Section 12926 (c).) 


          3)Defines employee, pursuant to regulations developed by FEHA,  
            as "any individual under the direction and control of an  
            employer under any appointment or contract of hire or  
            apprenticeship, express or implied, oral or written."  (2 Cal.  
            Code of Regulations Section 7286.5 (b).)


          FISCAL EFFECT:  As currently in print this bill is keyed fiscal.  



          COMMENTS:  According to the author, "the purpose of this bill is  
          to protect reserve peace officers under FEHA."  The author  
          contends that under existing law "there are conflicting  
          definitions when referring to reserve peace officers, and  
          uncertainty as to whether they are volunteers or employees."   
          This bill seeks to remedy this problem by stating unequivocally  
          that reserve peace officers are "employees" for purposes of FEHA  
          and are therefore protected by its anti-discrimination  
          provisions.  


          By expressly granting employee status to reserve peace officers,  
          this bill would effectively overturn a 2013 California appellate  
          court decision.  In Estrada v. City of Los Angeles 218 Cal. App.  
          4th 143 (2013), the court held that the plaintiff, a volunteer  
          police reserve officer appointed by the Los Angeles Chief of  
          Police, was not an employee within the meaning of FEHA.  The  








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          plaintiff had contended that he was an employee because the city  
          provided him with workers' compensation benefits (even though  
          the city was not required to do so by state law.)  Yet the court  
          held that providing the plaintiff with workers' compensation  
          coverage did not transform him into an "employee" for purposes  
          of the FEHA.  As a result, the plaintiff could not bring an  
          action against the city alleging disability discrimination. 


          As the court noted in Mendoza v Town of Ross 128 Cal. App. 4th  
          625 (2005), the existing statute does not offer much guidance in  
          how to define an "employee" for purposes of FEHA.  Indeed, the  
          purported "definition" in existing law does not offer any  
          affirmative definition at all; rather, it simply states what is  
          excluded:  "'Employee' does not include any individual employed  
          by his or parents, spouse, or child, or any individual employed  
          under a special license in a nonprofit sheltered workshop or  
          rehabilitation facility."  (Government Code Section 12926 (c).)   
          Fortunately, the definition of employee in the FEHA statute is  
          not the only one.  To implement FEHA, the Department of Fair  
          Employment and Housing enacted regulations that define an  
          employee as any individual "under the direction and control of  
          an employer under any appointment or contract of hire of  
          apprenticeship, express or implied, oral or written."  (2 CCR  
          Section 7286.5 (b).)  Although courts in Mendoza and Estrada  
          concluded that an individual must receive some form of  
          compensation in order to be considered an employee, the  
          regulatory definition does not, in fact, include such a  
          requirement.  Rather, the statute only requires that the  
          individual be "under the direction and control of an employer"  
          and that the individual be under "appointment" or under  
          "contract for hire."  Reserve peace officers are appointed by,  
          and under the supervision of, a local law enforcement authority.  
           Not unreasonably, then, this bill will specify that reserve  
          peace officers are employees for purposes of FEHA.  


          Author to Adopt Amendments Proposed by Assembly Labor and  
          Employment Committee:  Although the bill in print seeks to  








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          achieve the author's end by amending the definition of  
          "employee" in FEHA, the author agreed in the Assembly Labor and  
          Employment Committee to place the substantive provision in the  
          Penal Code section that authorizes and defines the duties of  
          reserve peace officers.  As noted above, the FEHA definition of  
          employee is structured in negative terms; that is, it defines  
          the categories of persons excluded from the definition of  
          employee rather than offering an affirmative definition or  
          listing categories of persons included within the definition.   
          As such, adding reserve peace officers affirmatively to the  
          definition of employee would fit awkwardly within the existing  
          structure.  Alternatively, the Assembly Labor and Employment  
          Committee recommended amending the Penal Code section that  
          authorizes reserve peace officers so as to specify that they are  
          employees for purposes of FEHA.  Due to timing considerations,  
          the amendment agreed to in the prior Committee (which is  
          detailed below) will be formally adopted in this Committee. 


          Status of Other Volunteers under FEHA:  As noted above, last  
          year's AB 1443 extended the anti-harassment provisions of FEHA -  
          but only those provisions - to unpaid interns and volunteers.   
          This bill will extend all anti-discrimination provisions in FEHA  
          to volunteer reserve peace officers, who perform effectively the  
          same functions as paid employees.  However, this raises a  
          significant question as to whether FEHA's anti-discrimination  
          provisions should protect all volunteers who are appointed to  
          their position and perform the same functions as paid employees.  
           This bill focuses on volunteer reserve and auxiliary peace  
          officers whose duties are similar enough to those of paid  
          employees that local jurisdictions often grant them benefits,  
          including Workers' Compensation benefits.  But surely reserve  
          peace officers do not constitute the universe of appointed and  
          supervised volunteers who perform the same functions as regular  
          employees.  At some point the Legislature may wish to address  
          the desirability and potential consequences of extending FEHA  
          protections to volunteers more generally.  This bill, however,  
          responds to a specific court case and accordingly limits itself  
          to a specific category of volunteers who seem to merit FEHA  








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          protections.


          Arguments in Support:  According to the author, this bill would  
          ensure that reserve peace officers are protected under FEHA and  
          would protect against their mistreatment and discrimination  
          within the workplace.  The sponsor, the California Reserve Peace  
          Officers Association, argues that despite the fact that reserve  
          peace officers perform "the same duties and functions as  
          full-time peace officers," they are vulnerable to termination,  
          discrimination and harassment that should be viewed as unlawful.


          Proposed Author Amendments:  Due to timing and scheduling  
          considerations, the amendments agreed to in the Assembly Labor  
          and Employment Committee will be formally adopted in this  
          Committee.  The amendment will strike the contents of the bill  
          in print and add a new subdivision (a) (3) to Penal Code Section  
          830.6 to read as follows:




            Any person that is deputized or appointed by the proper  
            authority as a reserve deputy sheriff or a reserve city  
            police officer, and any other person deputized or appointed  
            by the proper authority as a peace officer pursuant to  
            subsection (a) or (b) of this section 830.6, is an employee  
            of the county, city, city and county, town, district or  
            other such proper authority for all purposes of the  
            California Fair Employment and Housing Act, Part 2.8  
            (commencing with Section 12900) of Division 3 of Title 2 of  
            the Government Code.


          REGISTERED SUPPORT / OPPOSITION:











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          Support


          California Reserve Peace Officers Association (sponsor)




          Opposition


          None on file




          Analysis Prepared by:Thomas Clark / JUD. / (916) 319-2334