Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1017


Introduced by Assembly Member Campos

February 26, 2015


begin deleteAn act relating to employment. end deletebegin insertAn act to amend Section 12990 of the Government Code, relating to discrimination, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1017, as amended, Campos. begin deleteWages: gender pay equity. end deletebegin insertDiscrimination: equal pay: state contracting.end insert

begin insert

Existing law subjects an employer who is, or wishes to become, a contractor with the state for public works, or for goods or services, to various nondiscrimination requirements. Existing law authorizes requiring an employer to submit a nondiscrimination program to the Department of Fair Employment and Housing for approval and certification, prior to becoming a contractor or subcontractor with the state, as well as requiring the provision of periodic reports of contractor or subcontractor compliance with that program.

end insert
begin insert

This bill would require an employer with 100 or more employees, prior to becoming a contractor or subcontractor with the state, to submit an income equality program to the Department of Fair Employment and Housing for approval and certification and to submit periodic reports of its compliance with that program. The bill would require the income equality program to include the collection of summary data on the compensation paid to employees, including, but not limited to, data sorted by gender and race, and policies designed to ensure income equality and prevent unlawful discrimination.

end insert
begin insert

Existing law authorizes the Department of Fair Employment and Housing, where the department determines and certifies that specified provisions relating to nondiscrimination are violated or determines a contractor or subcontractor is engaging in certain unlawful practices, to recommend appropriate sanctions to the awarding agency.

end insert
begin insert

This bill would require the contractor or subcontractor to be subject to a civil penalty of not less than $10,000 if the department makes the determination and certification described above. This bill would require the penalty to be deposited in the Fair Employment Fund, which the bill would create, and would continuously appropriate the money in the fund to the department to be used for specified purposes. By creating a continuously appropriated fund, this bill would make an appropriation.

end insert
begin delete

Existing law generally prohibits an employer from paying an employee at wage rates less than the rates paid to employees of the opposite sex in the same establishment. Existing law further imposes penalties on an employer who violates this provision, subjecting the employer to civil action and specifying liquidated damages that may be paid to an employee who is paid unfairly.

end delete
begin delete

This bill would state the intent of the Legislature that would require pay equity for women in the workplace.

end delete

Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 12990 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

12990.  

(a) Any employer who is, or wishes to become, a
4contractor with the state for public works or for goods or services
5is subject to the provisions of this part relating to discrimination
6in employment and to the nondiscrimination requirements of this
7section and any rules and regulations that implement it.

8(b) begin insert(1)end insertbegin insertend insert Prior to becoming a contractor or subcontractor with
9the state, an employer may be required to submit a
10nondiscrimination program to the department for approval and
11certification and may be required to submit periodic reports of its
12compliance with that program.

begin insert

13(2) Prior to becoming a contractor or subcontractor with the
14state, an employer with 100 or more employees shall submit an
15income equality program to the department for approval and
P3    1certification and shall be required to submit periodic reports of
2its compliance with that program. The income equality program
3shall include the collection of summary data on the compensation
4paid to employees, including data sorted by gender and race, and
5include policies designed to ensure income equality and prevent
6unlawful discrimination.

end insert

7(c) Every state contract and subcontract for public works or for
8goods or services shall contain a nondiscrimination clause
9prohibiting discrimination on the bases enumerated in this part by
10contractors or subcontractors. The nondiscrimination clause shall
11contain a provision requiring contractors and subcontractors to
12give written notice of their obligations under that clause to labor
13organizations with which they have a collective bargaining or other
14agreement. These contractual provisions shall be fully and
15effectively enforced. This subdivision does not apply to a credit
16card purchase of goods of two thousand five hundred dollars
17($2,500) or less. The total amount of exemption authorized herein
18shall not exceed seven thousand five hundred dollars ($7,500) per
19year for each company from which a state agency is purchasing
20goods by credit card. It shall be the responsibility of each state
21agency to monitor the use of this exemption and adhere to these
22restrictions on these purchases.

23(d) The department shall periodically develop rules and
24regulations for the application and implementation of this section,
25and submit them to the council for consideration and adoption in
26accordance with the provisions of Chapter 3.5 (commencing with
27Section 11340) of Part 1. Those rules and regulations shall describe
28and include, but not be limited to, all of the following:

29(1) Procedures for the investigation, approval, certification,
30decertification, monitoring, and enforcement of nondiscrimination
31programs.

32(2) The size of contracts or subcontracts below which any
33particular provision of this section shall not apply.

34(3) The circumstances, if any, under which a contractor or
35subcontractor is not subject to this section.

36(4) Criteria for determining the appropriate plant, region,
37division, or other unit of a contractor’s or subcontractor’s operation
38for which a nondiscrimination program is required.

39(5) Procedures for coordinating the nondiscrimination
40requirements of this section and its implementing rules and
P4    1regulations with the California Plan for Equal Opportunity in
2Apprenticeship, with the provisions and implementing regulations
3of Article 9.5 (commencing with Section 11135) of Chapter 1 of
4Part 1, and with comparable federal laws and regulations
5concerning nondiscrimination, equal employment opportunity,
6and affirmative action by those who contract with the United States.

7(6) The basic principles and standards to guide the department
8in administering and implementing this section.

9(e) Where a contractor or subcontractor is required to prepare
10an affirmative action, equal employment, or nondiscrimination
11program subject to review and approval by a federal compliance
12agency, that program may be filed with the department, instead of
13any nondiscrimination program regularly required by this section
14or its implementing rules and regulations. Such a program shall
15constitute a prima facie demonstration of compliance with this
16section. Where the department or a federal compliance agency has
17required the preparation of an affirmative action, equal
18employment, or nondiscrimination program subject to review and
19approval by the department or a federal compliance agency,
20evidence of such a program shall also constitute prima facie
21compliance with an ordinance or regulation of any city, city and
22county, or county that requires an employer to submit such a
23program to a local awarding agency for its approval prior to
24becoming a contractor or subcontractor with that agency.

25(f) begin insert(1)end insertbegin insertend insertWhere the department determines and certifies that the
26provisions of this section or its implementing rules and regulations
27are violated or determines a contractor or subcontractor is engaging
28 in practices made unlawful under this part, thebegin insert contractor or
29subcontractor shall be subject to a civil penalty of not less than
30ten thousand dollars ($10,000). Theend insert
department may recommend
31begin insert additionalend insert appropriate sanctions to the awarding agency. Any such
32recommendation shall take into account the severity of the violation
33or violations and any other penalties, sanctions, or remedies
34previously imposed.

begin insert

35(2) (A) The penalty collected pursuant to paragraph (1) shall
36be deposited in the Fair Employment Fund, which is hereby created
37in the General Fund.

end insert
begin insert

38(B) Notwithstanding Section 13340, all money transferred to
39the Fair Employment Fund is hereby continuously appropriated
40to the department without regard to fiscal years for enforcement
P5    1of the Fair Employment and Housing Act and for education of
2employers and employees of their rights and responsibilities under
3the act.

end insert
begin insert

4(C) Money appropriated to the department shall be used to
5supplement, not supplant, other funding available to the department
6for the purposes specified in subparagraph (B).

end insert
begin delete
7

SECTION 1.  

It is the intent of the Legislature to enact
8legislation that would require pay equity for women in the
9workplace.

end delete


O

    98