BILL ANALYSIS Ó AB 883 Page 1 Date of Hearing: April 22, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 883 (Low) - As Amended April 6, 2015 ----------------------------------------------------------------- |Policy |Labor and Employment |Vote:|5 - 1 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: AB 883 Page 2 This bill prohibits employers, or a person who operates specified job posting Internet Web site, from publishing or posting a job advertisement that would disqualify an applicant who is currently, or was at one point, a public employee, authorizes a job applicant or prospective applicant to bring an action against the perspective employer, and provides for a fine for an intentional violation. FISCAL EFFECT: Unknown costs, potentially in excess of $1 million (special funds) for the Department of Industrial Relations to process, review, and investigate complaints. Predicting the number and nature of the claims that may come before the DLSE is difficult. 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. COMMENTS: 1)Purpose. The California Professional Firefighters are sponsoring this bill in response to employment practices that require an applicant for employment to not be a participant of a governmental retirement plan. According to the sponsor, qualified job applicants are being discriminated against and penalized when their work history shows that they currently hold, or previously held, a position in which they were classified as a public employee since only public employees are eligible to be members of a governmental retirement plan. 2)Background. Existing federal and state law contain provisions that define unlawful discrimination and unlawful employment AB 883 Page 3 practices by employers and employment agencies. These provisions exist to protect both prospective and current employees against employment discrimination. The Fair Employment and Housing Act (FEHA), prohibits harassment and discrimination in employment because of, among other things, race, color, religion, sex, gender, sexual orientation, marital status, mental and physical disability, age and/or retaliation for protesting illegal discrimination related to one of these categories. In addition, current law generally prohibits public and private employers from requiring an applicant to disclose an arrest or detention that did not result in a conviction. The Retaliation Complaint Investigation (RCI) unit within DIR's Division of Labor Standards Enforcement (DLSE) investigates complaints of violations of approximately 20 statutory rights, such as using sick leave to attend to illness of a family member, reporting violations of state or federal law, and freedom from gender-based wage discrimination. Based on data for 2009 to 2012, approximately 1,200 cases were filed annually. 3)Opposition. A coalition of employer groups, including the California Chamber of Commerce, opposes this bill. According to their letter: "If the employer inquires into the applicant's relevant background either through a written job application that asks the applicant to list his or her prior employers, or through an in-person interview to discuss the applicant's work AB 883 Page 4 experience, and discovers the applicant's protected status as a former or current public employee, then the employer will be subject to potential civil litigation under [this bill] if the employer does not ultimately hire the individual. Even if the decision to hire is based upon a separate, unrelated reason other than the individual's status as a former or public employee, once the "protected" information is discovered, it creates the opportunity for a discrimination lawsuit against the business. Unlike other protected classifications currently in California law, an applicant's prior employment history is not something that an employer can easily navigate away from while inquiring about an applicant's work experience when interviewing or reviewing a candidate for employment in order to avoid a discrimination claim." Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081