BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 561 (Campos) - Agricultural labor relations. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 23, 2015 |Policy Vote: L. & I.R. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 17, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 561 would (1) create an expedited process from the enforcement of monetary penalties ordered by the Agricultural Labor Relations Board (ALRB), and (2) require agricultural employers to post a bond, as specified, if they wish to appeal a final order. Fiscal Impact: ALRB indicates that it would incur annual General Fund costs of $2 million to implement the provisions of the bill (see Staff Comments). Background: Current law establishes the Agricultural Labor Relations Act AB 561 (Campos) Page 1 of ? (ALRA), which delineates the rights of California farm workers. The ALRA states it is the policy of the State to (1) protect the right of farm workers to act together to help themselves, (2) engage in union organizational activity, and (3) select their own representatives for the purpose of bargaining with their employer for a contract covering their wages, hours, and working conditions. The ALRA is enforced by ALRB. Current law requires that if ALRB rules that any person has engaged in or is engaging in any specified unfair labor practice, it must issue an order requiring such person to cease and desist from such unfair labor practice and to take affirmative action, which may include (1) reinstatement of employees with or without backpay, and (2) making employees whole, when the board deems such relief appropriate, for the loss of pay resulting from the employer's refusal to bargain. Proposed Law: This bill would do the following: Provide that within one year of an order of the ALRB finding liability for a makewhole award, back pay calculation, or other monetary award to employees, the ALRB and general counsel shall process any compliance decision concerning the award to final board order. Provide that, if the ALRB finds liability as discussed above but requires a compliance proceeding to determine monetary damages, then the ALRB order must be processed as a final board order within one year of the date when a board order concerning liability becomes final because no appeal was sought or the date when a reviewing court dismisses an employer's appeal or decides in favor of the board concerning the employer's liability. Provide that, if the if an employer's liability and compliance proceedings are consolidated, the ALRB must act reasonably and without delay in reaching a final decision concerning the liability and amounts owed to workers. Require an employer who petitions for a writ of review or otherwise appeals or seeks to overturn or stay any order AB 561 (Campos) Page 2 of ? 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. Require that the bond discussed above must be an appeal bond issued by a licensed surety or a cash deposit with the ALRB in the amount of the order, decision, or award. The bond must be on the condition that, if any judgment is entered against the employer, the employer shall pay the amount owed pursuant to the judgment, and if the appeal is withdrawn or dismissed without entry of judgment, the employer shall pay the amount owed pursuant to the order, decision, or award of the board unless the parties have executed a settlement agreement for payment of some other amount. Require that, for an ALRB order regarding mandatory mediation and conciliation procedures, the ALRB must fix the bond amount by reasonably determining the entire economic value of the terms, conditions, and benefits of the ordered collective bargaining agreement based upon submissions from the parties and a recommended finding from the assigned mediator in the case. Related Legislation: SB 126 (Steinberg), Chapter 697, Statutes of 2011, empowers ALRB to require an employer to bargain with a labor organization if that employer is guilty of significant misconduct during a secret ballot election for union representation. Staff Comments: This bill would create an expedited process that will help aggrieved farmworkers recover the back pay and benefits that they are owed, and appears to be largely driven by one AB 561 (Campos) Page 3 of ? dispute dating back to the late 1980s. ALRB administrative would incur annual costs of approximately $2 million to create the expedited process. A total of eleven positions would be needed (three of which would reflect the conversion of existing positions limited-term to full time). Just over half would be legal staff, with the remainder would be compliance officers, field examiners, and analytical staff. Staff notes that the enacted 2015-16 state budget provides ALRB with $3.5 million in additional funding (and nearly 20 positions) over the 2013-14 level. The extent to which these new resources may be able to absorb some of the workload required of this bill is unclear. -- END --