BILL ANALYSIS Ó AB 676 Page 1 ASSEMBLY THIRD READING AB 676 (Calderon) As Introduced February 25, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+--------------------+----------------------| |Labor |5-1 |Roger Hernández, |Harper | | | |Chu, Low, McCarty, | | | | |Thurmond | | | | | | | |----------------+------+--------------------+----------------------| |Appropriations |12-5 |Gomez, Bonta, |Bigelow, Chang, | | | |Calderon, Daly, |Gallagher, Jones, | | | |Eggman, |Wagner | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Quirk, Rendon, | | | | |Weber, Wood | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: Enacts various provisions of law related to discrimination based on an individual's employment status (present AB 676 Page 2 unemployment). Specifically, this bill: 1)Defines "employment status" to mean an individual's present unemployment, regardless of length of time that the individual has been unemployed. 2)Prohibits an employer, unless based on a bona fide occupational qualification, from doing either of the following: a) Publishing an advertisement or announcement for any job that includes a provision stating or indicating that an individual's current employment is a requirement for the job. b) Affirmatively asking an applicant for employment to disclose information concerning the applicant's current employment status until the employer has determined that the applicant meets the minimum employment qualifications for the position. 3)Prohibits an employment agency, unless based on a bona fide occupational qualification, from doing any of the following: a) Publishing an advertisement or announcement for any job that includes a provision stating or indicating that an individual's current employment is a requirement for the job. b) Limiting, segregating, or classifying an individual in any manner that may limit that individual's access to information about jobs or referrals for consideration of jobs because of the individual's employment status. c) Affirmatively asking an applicant for employment to disclose information concerning the applicant's current employment status until the employer has determined that the applicant meets the minimum employment qualifications for the position. 4)Prohibits a person who operates a job posting Web site, unless AB 676 Page 3 based on a bona fide occupational qualification, from publishing an advertisement or announcement for any job that includes a provision stating or indicating that an individual's current employment is a requirement for the job. 5)Provides that this bill does not prohibit an employer, employment agency, or person operating a job posting Web site from doing the following: a) Publishing an advertisement or announcement for any job that contains any provision setting forth qualifications for a job, as specified, including that only individuals who are current employees of the employer will be considered for the job. b) Setting forth qualifications for any job, as specified. c) Obtaining information regarding an individual's employment, including recent relevant experience. d) Having knowledge of a person's employment status. e) Inquiring as to the reasons for an individual's employment status. f) Refusing to offer employment to a person because of the reasons underlying an individual's employment status. g) Otherwise making employment decisions pertaining to that individual. 6)Prohibits an employer, employment agency, or person operating a job posting Web site from interfering with, restraining, or denying the exercise of, or the attempt to exercise, any rights AB 676 Page 4 provided under this bill, or discriminating against an individual because the individual has engaged in specified activities. 7)Authorizes an individual aggrieved by a violation of this bill to file a complaint with the Labor Commissioner. 8)Establishes civil penalties of $1,000 for a first violation, $5,000 for a second violation, and $10,000 for each subsequent violation. FISCAL EFFECT: According to the Assembly Appropriations Committee, administrative costs to the Department of Labor Standards Enforcement, potentially in the range of $1 million to $3 million (special funds), to process, review, and investigate complaints. Predicting the number and nature of the claims that may come before the Division of Labor Standards Enforcement (DLSE) is difficult. According to data from the Employment Development Department, as of February, there are approximately 1.2 million unemployed workers in California. According to DLSE, cases involving retaliation often involve lengthy, resource intensive investigations. This bill also expands DLSE enforcement authority to include 3rd party internet website providers. This is a new addition to the DLSE statutory framework and associated costs are difficult to determine. Further, this bill prohibits a private right of action, meaning all complaints would come before DLSE COMMENTS: According to the author, research shows that the long-term unemployed are frequently overlooked and sometimes excluded from job opportunities. Employers and employment agencies have posted job vacancy notifications with language such as "No unemployed candidates considered at all" or "Only currently employed candidates will be considered." AB 676 Page 5 Employers are disinclined to hire even well-qualified job applicants who have been out of work for six months or longer. Three Princeton economists found that only 11% of those unemployed for more than six months will ever regain steady full-time work. Therefore, the author states that this bill would seek to prevent employers, including the state and local agencies, or employment agencies from affirmatively asking an applicant for employment to disclose information concerning employment status until the employer or employment agency has determined that the applicant meets the minimum employment qualifications for the position. This bill will prohibit an employer, employment agency, or person who operates on an Internet Web site for posting jobs in this state from publishing a job announcement or advertisement containing a provision stating or indicating that an individual's current employment is a requirement for the job, unless based on a bona fide occupational qualification. AB 2271 (Calderon) of 2014, which was nearly identical to this bill, was vetoed by Governor Brown. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0000796 AB 676 Page 6