BILL ANALYSIS Ó AB 561 Page 1 ASSEMBLY THIRD READING AB 561 (Campos) As Amended April 14, 2015 Majority vote -------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | |----------------+------+----------------------+---------------------| |Labor |5-2 |Roger Hernández, Chu, |Harper, Patterson | | | |Low, McCarty, | | | | |Thurmond | | | | | | | |----------------+------+----------------------+---------------------| |Appropriations |12-5 |Gomez, Bonta, |Bigelow, Chang, | | | |Calderon, Daly, |Gallagher, Jones, | | | |Eggman, Eduardo |Wagner | | | |Garcia, Gordon, | | | | |Holden, Quirk, | | | | |Rendon, Weber, Wood | | | | | | | | | | | | -------------------------------------------------------------------- SUMMARY: Makes various changes to the Agricultural Labor Relations Act. Specifically, this bill: 1)Provides that within one year of an order of the Agricultural Labor Relations Board (ALRB) finding liability for a makewhole award, backpay calculation, or other monetary award to AB 561 Page 2 employees, the ALRB and general counsel shall process any compliance decision concerning the award to final board order. 2)Requires an employer who petitions for a writ of review or otherwise appeals or seeks to overturn or stay any order of the ALRB to post a bond, in the amount of the entire economic value of the order as determined by the ALRB, to ensure that employees receive the benefits of the order if the employer does not prevail. The ALRB shall reasonably determine the entire economic value of the order based on submissions from the parties. FISCAL EFFECT: According to the Assembly Appropriations Committee: 1)General Fund administrative costs of approximately $1.3 million for a compliance unit in each of the five field offices to process compliance decisions within one year of an order for a makewhole award, backpay calculation or other monetary award. 2)General Fund administrative costs of approximately $500,000 for the ALRB to process compliance decisions. COMMENTS: This bill is sponsored by the United Farm Workers (UFW), who argues that it will create an expedited process to help recover backpay and benefits owed to farm workers and their families. Specifically, the sponsor cites to a case involving Ace Tomato Company dating back to 1989 (which is still not resolved) and a related case as highlighting the need for this bill. Those cases were also the subject of an oversight hearing by the AB 561 Page 3 Assembly Labor and Employment Committee and Budget Subcommittee No. 4 in 2010. The sponsor contends that this bill is needed because there may be future cases where farm worker families are held back economically by the current law's faulty resolution system. A large coalition of agricultural employers opposes this measure, stating that it would require an employer seeking a writ of review of any ALRB decision to first post a bond in the amount of the entire economic value of the order as determined by the ALRB. Such a requirement could deter many employers from seeking their right to appeal. In many cases, the entire economic value of the order cannot be known or is in dispute which would limit the possibility of obtaining a bond. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0000567