BILL ANALYSIS                                                                                                                                                                                                    Ó





                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                             2015-2016  Regular  Session


          AB 883 (Low)
          Version: June 1, 2015
          Hearing Date: July 7, 2015
          Fiscal: Yes
          Urgency: No
          TMW


                                        SUBJECT
                                           
                         Employment:  public employee status

                                      DESCRIPTION  

          This bill would prohibit an employer or person who operates an  
          Internet Web site from advertising or announcing a job that  
          discriminates against an applicant who is a current or former  
          public employee.

                                      BACKGROUND  

          The Equal Employment Opportunity Commission (EEOC) enforces  
          Title VII of the Civil Rights Act of 1964 (Title VII), which  
          prohibits employment discrimination based on race, color,  
          religion, sex or national origin.  Various California statutes,  
          such as the Fair Employment and Housing Act (FEHA) and the Unruh  
          Civil Rights Act, prohibit discrimination in employment,  
          housing, public accommodation and services provided by business  
          establishments on the basis of specified personal  
          characteristics such as sex, race, color, national origin,  
          religion, and disability.  Over time, these statutes have been  
          amended to include other characteristics such as medical  
          conditions, marital status, and sexual orientation.  Also over  
          time, other statutes were amended to reflect the state's public  
          policy against discrimination in all forms.

          This bill seeks to prohibit employment discrimination against  
          current or former public employees applying for public or  
          private employment.









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          This bill was heard by the Senate Labor and Industrial Relations  
          Committee on June 24, 2015, and was approved by a vote of 4-1.

                                CHANGES TO EXISTING LAW
          
          Existing federal law  , Title VII of the Civil Rights Act,  
          prohibits discrimination and harassment of employees.  (42  
          U.S.C. Sec. 2000e et seq.)
           Existing law  , the Fair Employment and Housing Act (FEHA),  
          prohibits, as a matter of public policy, discrimination and  
          harassment in employment on the basis of race, religious creed,  
          color, national origin, ancestry, physical disability, mental  
          disability, medical condition, genetic information, marital  
          status, sex, gender, gender identity, gender expression, age,  
          sexual orientation, or military and veteran status.  (Gov. Code  
          Sec. 12940 et seq.)

           Existing law  prohibits various employment practices relating to  
          contracts and applications for employment.  (Lab. Code Sec. 430  
          et seq.)

           Existing law  prohibits a public or private employer from asking  
          an applicant to disclose information concerning an arrest or  
          detention that did not result in a conviction, as specified.   
          (Lab. Code Sec. 432.7.)

           Existing law  prohibits a state or local agency from asking an  
          applicant for employment to disclose information concerning the  
          conviction history of the applicant until the agency has  
          determined the applicant meets the minimum employment  
          qualifications, as stated in any notice issued for the position.  
           (Lab. Code Sec. 432.9.)

           Existing law  makes it a misdemeanor for violating those  
          prohibitions on employment practices.  (Lab. Code Sec. 433.)

           This bill  would prohibit an employer, including a public  
          employer, from doing any of the following:
           publishing in print, on an Internet Web site, or in any other  
            medium, an advertisement or announcement for any job that  
            includes a provision stating or indicating directly or  
            indirectly that the applicant for employment must not be a  
            current or former public employee;
           communicating or disclosing directly or indirectly, through  
            any written form or verbally, that an applicant's status as a  







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            current or former public employee disqualifies an individual  
            from eligibility for employment; and
           making an adverse employment decision based on an applicant's  
            current or former employment as a public employee.

           This bill  would prohibit a person who operates an Internet Web  
          site for posting jobs in this state from publishing on that  
          Internet Web site an advertisement or announcement for any job  
          that includes a provision stating or indicating directly or  
          indirectly that the applicant for employment must not be a  
          current or former public employee.

           This bill  would not prohibit an employer or a person who  
          operates an Internet Web site for posting jobs from:
           publishing in print, on an Internet Web site, or in any other  
            medium, an advertisement or announcement for a job that  
            contains provisions setting forth qualifications for the job,  
            including:
             o    holding a current and valid professional or occupational  
               license, certificate, registration, permit, or other  
               credential;
             o    requiring a minimum level of education or training or  
               professional, occupational, or field experience; or
             o    stating that only individuals who are current employees  
               of the employer will be considered for that job;
           setting forth qualifications for a job, including:
             o    holding a current and valid professional or occupational  
               license, certificate, registration, permit, or other  
               credential;
             o    requiring a minimum level of education, training, or  
               professional, occupational, or field experience; or
             o    stating that only individuals who are current employees  
               of the employer will be considered for that job;
           obtaining information regarding an individual's current or  
            former status as a public employee, including recent relevant  
            experience; 
           having knowledge of a person's current or former status as a  
            public employee; or
           otherwise making employment decisions pertaining to that  
            individual.

           This bill  would clarify that an employer would not be subject to  
          a misdemeanor for violating this bill.  
           
                                        COMMENT







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          1.  Stated need for the bill  
          
          The author writes:
          
            Existing federal and state law contain provisions that define  
            unlawful discrimination and unlawful employment 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 (Government Code [Sections]  
            12940, 12945). 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 (Labor Code [Section] 432.7). 

            In addition, AB 218 (Dickinson) which was signed into law in  
            2013 provided additional protections for job applicants by  
            prohibiting a state or local agency from asking an applicant  
            for employment to disclose information concerning their  
            conviction history, until the agency has determined [the]  
            applicant meets the minimum employment qualifications for the  
            position. 

            These statutes seek to ensure a workplace free from  
            discrimination as well as establish clear prohibitions of  
            employment practices that would deprive or tend to deprive any  
            individual of employment opportunities, limit such employment  
            opportunities or otherwise adversely affect a person's status  
            as an employee or as an applicant for employment. 

            Unfortunately, a new trend in employment practices has  
            surfaced - one that requires an applicant for employment to  
            not be a participant of a governmental retirement plan.   
            Consequently, qualified job applicants are now 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  







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            retirement plan.

            AB 883 prohibits employers from publishing or posting a job  
            advertisement that would disqualify an applicant who is  
            currently, or was at one point, a public employee.  

          2.  Prohibiting discrimination against employment applicants who  
            are current or former public employees  

          This bill would prohibit an employer, including a public  
          employer, from discriminating against employment applicants who  
          are current or former public employees by prohibiting the  
          employer from:
           publishing in print, on an Internet Web site, or in any other  
            medium, an advertisement or announcement for any job that  
            includes a provision stating or indicating directly or  
            indirectly that the applicant for employment must not be a  
            current or former public employee;
           communicating or disclosing directly or indirectly, through  
            any written form or verbally, that an applicant's status as a  
            current or former public employee disqualifies an individual  
            from eligibility for employment; and
           making an adverse employment decision based on an applicant's  
            current or former employment as a public employee.

          This bill would also prohibit a person who operates an Internet  
          Web site for posting jobs in this state from discriminating  
          against current or former public employees by publishing on that  
          Internet Web site an advertisement or announcement for any job  
          that includes a provision stating or indicating directly or  
          indirectly that the applicant for employment must not be a  
          current or former public employee.  However, this bill would not  
          prohibit an employer or a person who operates an Internet Web  
          site for posting jobs from setting forth qualifications for a  
          job or publishing in print, on an Internet Web site, or in any  
          other medium, an advertisement or announcement for a job that  
          contains provisions setting forth qualifications for the job,  
          including:
           holding a current and valid professional or occupational  
            license, certificate, registration, permit, or other  
            credential;
           requiring a minimum level of education or training or  
            professional, occupational, or field experience; or
           stating that only individuals who are current employees of the  
            employer will be considered for that job.







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          This bill would also authorize an employer or Internet Web site  
          job poster to obtain information regarding an individual's  
          current or former status as a public employee, including recent  
          relevant experience and have knowledge of a person's current or  
          former status as a public employee; or otherwise make employment  
          decisions pertaining to that individual.

          According to the author, employers are beginning to discriminate  
          against qualified job applicants that disclose they are current  
          or former public employees.  The San Jose Fire Firefighters,  
          IAFF Local 230, in support, report that "it was brought to our  
          attention that job postings for other fire departments,  
          including the San Ramon Valley Protection District, specifically  
          stated that current public safety employees who participated in  
          a government retirement system were not allowed to apply for  
          firefighter positions."  Indeed, the author provided a job  
          posting from the San Ramon Valley Fire Protection District  
          seeking applicants for a firefighter/paramedic position.  The  
          job posting stated under qualifications that the applicant  
          "[m]ust not be a current participant in a government retirement  
          system and must not be eligible for reciprocity with [the Contra  
          Costa County Employees Retirement Association (CCCERA)]."

          LIUNA Locals 777 and 792, in support, state that this  
          discrimination is aimed at "requiring applicants to not be  
          participants in governmental retirement plans.  Consequently and  
          unfortunately, qualified job applicants - often even the most  
          qualified job applicants, are now 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 (as only public employees are eligible to  
          be members of a governmental retirement plan.)"  

          The California Labor Federation, AFL-CIO, in support, contends  
          that "[s]uch discriminatory employment practices are simply bad  
          public policy for the State of California.  Punishing potential  
          applicants due to his or her previous experience as a public  
          employee potentially [disincentivizes] public service.  Further,  
          by discriminating against applicants in this way, an employer  
          may be excluding an entire group of highly qualified applicants  
          from consideration."

          According to the Contra Costa County Employees Retirement  
          Association (CCCERA), "[r]eciprocity encourages career public  







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          service by allowing retirement benefit credits to accrue and  
          link together from one public employer to another public  
          employer.  For example, if you are employed with Contra Costa  
          County and decide to take a job with Alameda County, your  
          service may qualify as reciprocal, since Contra Costa County and  
          Alameda County are both 1937 Act counties (retirement benefits  
          legislated under the 1937 Act).  There are advantages to being a  
          reciprocal member of a retirement system:
           Your retirement contribution rate in all reciprocal systems,  
            which is usually based on your age at entry into the first  
            reciprocal system, will be lower.  (Younger members pay a  
            lower contribution rate, since they have more time to  
            contribute before retirement.)
           Service credits earned in all reciprocal systems may be used  
            to meet system vesting and retirement eligibility.
           When you retire, your highest rate of final compensation from  
            any reciprocal system will be used by all reciprocal systems  
            to calculate your benefit. (For Contra Costa County, the final  
            average salary will be based on either a 12 month or 36 month  
            final average salary calculation, depending on your retirement  
            tier.)
           Benefits are computed by each system based on the benefit  
            formula for each retirement system."  (CCCERA, Reciprocity  
             [as of June 22,  
            2015].)

          Notably, the San Ramon Valley Fire Protection District  
          disqualifies an applicant who is "a current participant in a  
          government retirement system and must not be eligible for  
          reciprocity with CCCERA," but it is not specifically  
          discriminating against current or former government employees,  
          who would be provided protection under this bill.  Rather, it  
          appears that the District is trying to hire applicants who may  
          opt to invest in their retirement as a new member at higher  
          contribution rates than what they are currently contributing  
          based on current membership in a government retirement program.   
          Adding new members at a higher contribution rate would help  
          stabilize the District's retirement system, which has been a  
          major concern for retirement programs following the Great  
          Recession, which began in December, 2007.

          Although this bill may not actually remedy the discrimination  
          against a member of a government retirement program, this bill  
          would prohibit an employer from discriminating against a current  
          or former public employee, as long as the applicant is not a  







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          member of a government retirement program.  Accordingly, the  
          author offers the following amendment in Committee to clarify  
          that the bill would provide discrimination protection for  
          current and former public employees, as well as individuals who  
          are participants in a government retirement program.

             Author's amendment  :

            On page 3, below line 40, insert "(e) As used in this section,  
            "current or former public employee" includes any person who is  
            currently, or was previously, employed by a public entity, as  
            well as any person who is a participant in a government  
            retirement system."
          3.  Oppositions' concerns  

          A coalition of opposition argues that this bill would preclude  
          an employer from adequately inquiring into relevant employment  
          work history without the threat of costly litigation, including  
          treble damages.  The opposition argues that this bill prohibits  
          an employer from inquiring into an applicant's relevant work  
          experience for a position and finds that the applicant is either  
          a current or former public employee, the employer would not be  
          able to hire the employee for the position as that would be an  
          "employment decision."  Further, the opposition argues that if  
          the employer inquires into the applicant's relevant background  
          and discovers the applicant's protected status as a former or  
          current public employee, the employer would be subject to  
          potential civil litigation under this bill if the employer does  
          not ultimately hire the applicant, regardless of whether there  
          may be unrelated concerns that would otherwise disqualify the  
          applicant.

          Conversely, if the employer fails to adequately investigate the  
          applicant's work history prior to hiring the applicant out of a  
          desire to avoid liability under this bill, the employer could be  
          exposed to a potential negligent hiring claim if the employee  
          ultimately engages in dangerous conduct that the employer could  
          or should have discovered by conducting a pre-hire background  
          investigation.  The opposition also notes that they are unaware  
          of any systematic discrimination in the private sector against  
          individuals who are current or former employees that this bill  
          seeks to address, so the private sector should not be subject to  
          the provisions of this bill.  The opposition argues that this  
          bill will simply create more opportunities for civil litigation  
          against employers.







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           Support  :  Association for Los Angeles Deputy Sheriffs;  
          Association of Deputy District Attorneys; California Association  
          of Professional Employees; California Federation of Teachers,  
          AFT, AFL-CIO; California Labor Federation, AFL-CIO;  
          California-Nevada Conference of Operating Engineers; California  
          Nurses Association; California School Employees Association,  
          AFL-CIO; Glendale City Employees Association; LIUNA Local 777;  
          LIUNA Local 792; Los Angeles County Probation Officers Union,  
          AFSCME, Local 685; Los Angeles Police Protective League;  
          Organization of SMUD Employees; Riverside Sheriffs Association;  
          San Bernardino Public Employees Association; San Diego County  
          Court Employees Association; San Jose Firefighters, IAFF Local  
          230; San Luis Obispo County Employees Association; Service  
          Employees International Union, AFL-CIO

           Opposition  :  California Association of Bed and Breakfast Inns;  
          California Chamber of Commerce; California Hotel and Lodging  
          Association; California League of Food Processors; California  
          Manufacturers and Technology Association; California Retailers  
          Association; CAWA - Representing the Automotive Parts Industry;  
          Chamber of Commerce Mountain View; Civil Justice Association of  
          California; El Centro Chamber of Commerce & Visitors Bureau;  
          Fullerton Chamber of Commerce; Greater Bakersfield Chamber of  
          Commerce; Greater Fresno Area Chamber of Commerce; Irvine  
          Chamber of Commerce; Lake Tahoe South Shore Chamber of Commerce;  
          National Federation of Independent Business; Palm Desert Area  
          Chamber of Commerce; Redondo Beach Chamber of Commerce and  
          Visitors Bureau; Santa Clara Chamber of Commerce and Convention  
          Visitors Bureau; Santa Maria Valley Chamber of Commerce and  
          Visitors Convention Bureau; Simi Valley Chamber of Commerce;  
          South Bay Association of Chambers of Commerce; Western  
          Electrical Contractors Association

                                        HISTORY
           
           Source  :  California Professional Firefighters


           Related Pending Legislation  :  AB 676 (Calderon, 2015) would  
          prohibit discrimination by an employer based on a prospective  
          job applicant's employment status.  AB 676 is currently in the  
          Senate Appropriations Committee.








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           Prior Legislation  :

          AB 2271 (Calderon, 2014) was substantially similar to AB 676 and  
          was vetoed because Governor Brown believed it could impede the  
          state's efforts to connect unemployed workers to prospective  
          employers, and that the bill would not provide the proper path  
          to helping unemployed Californians get back to work.

          AB 218 (Dickinson, Chapter 699, Statutes of 2013) prohibits a  
          state or local agency from asking an employment applicant to  
          disclose information concerning the applicant's conviction  
          history until the agency has determined the applicant meets the  
          minimum employment qualifications as stated in any notice issued  
          for the employment position.



          AB 1450 (Allen, 2012) was substantially similar to AB 676 and  
          was vetoed by Governor Brown because he believed AB 1450 would  
          lead to unnecessary confusion.

           Prior Vote  :

          Senate Labor & Industrial Relations Committee (Ayes 4, Noes 1)
          Assembly Floor (Ayes 52, Noes 27)
          Assembly Appropriations Committee (Ayes 12, Noes 5)
          Assembly Labor and Employment Committee (Ayes 5, Noes 1)

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