Amended in Assembly April 16, 2015

Amended in Assembly March 26, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 1017


Introduced by Assembly Member Campos

February 26, 2015


An act tobegin delete amend Section 12990 of the Government Code, relating to discrimination, and making an appropriation therefor.end deletebegin insert add Section 432.3 to the Labor Code, relating to employers.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1017, as amended, Campos. begin deleteDiscrimination: equal pay: state contracting. end deletebegin insertEmployers.end insert

begin insert

Existing law imposes various restrictions on employers with respect to applicants for employment. A violation of those restrictions is a misdemeanor.

end insert
begin insert

This bill would prohibit an employer from publishing, listing, or posting an advertisement, as specified, to recruit candidates without including the minimum rate of pay, and from paying wages for less than what were advertised. The bill would also prohibit an employer from seeking salary history information from an applicant for employment and from releasing the salary history of any current or former employee without written authorization from the current or former employee. By imposing new prohibitions on employers, the violation of which would be a crime, this bill would impose a state-mandated local program.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin delete

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 delete
begin delete

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 delete
begin delete

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 delete
begin delete

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 delete

Vote: begin delete23 end deletebegin insertmajorityend insert. Appropriation: begin deleteyes end deletebegin insertnoend insert. Fiscal committee: yes. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

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

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 432.3 is added to the end insertbegin insertLabor Codeend insertbegin insert, to read:end insert

begin insert
2

begin insert432.3.end insert  

An employer shall not do any of the following:

P3    1(a) Orally or in writing, personally or through an agent, publish,
2list, or post, publicly or within the organization, or publish, list,
3or post with any employment agency, job-listing service, or Internet
4Web site, an advertisement to recruit candidates for hire or
5independent contractors to fill a position within the organization,
6without including the minimum rate of pay whether paid by the
7hour, shift, day, week, salary, piece, commission, or other form of
8pay, including overtime, with allowances, if any, claimed as part
9of the minimum wage, including tip, meal, or lodging allowances.
10In addition, an employer shall not pay wages for the position for
11less than what were advertised.

12(b) Orally or in writing, personally or through an agent, seek
13salary history information, including, but not limited to,
14compensation and benefits, from an applicant for employment for
15an interview or as a condition of employment.

16(c) Release the salary history of any current or former employee
17to any prospective employer in response to a request as part of an
18interview or hiring process without written authorization from the
19current or former employee.

end insert
20begin insert

begin insertSEC. 2.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
21Section 6 of Article XIII B of the California Constitution because
22the only costs that may be incurred by a local agency or school
23district will be incurred because this act creates a new crime or
24infraction, eliminates a crime or infraction, or changes the penalty
25for a crime or infraction, within the meaning of Section 17556 of
26the Government Code, or changes the definition of a crime within
27the meaning of Section 6 of Article XIII B of the California
28Constitution.

end insert
begin delete
29

SECTION 1.  

Section 12990 of the Government Code is
30amended to read:

31

12990.  

(a) Any employer who is, or wishes to become, a
32contractor with the state for public works or for goods or services
33is subject to the provisions of this part relating to discrimination
34in employment and to the nondiscrimination requirements of this
35section and any rules and regulations that implement it.

36(b) (1)  Prior to becoming a contractor or subcontractor with
37the state, an employer may be required to submit a
38nondiscrimination program to the department for approval and
39certification and may be required to submit periodic reports of its
40compliance with that program.

P4    1(2) Prior to becoming a contractor or subcontractor with the
2state, an employer with 100 or more employees shall submit an
3income equality program to the department for approval and
4certification and shall be required to submit periodic reports of its
5compliance with that program. The income equality program shall
6include the collection of summary data on the compensation paid
7to employees, including data sorted by gender and race, and include
8policies designed to ensure income equality and prevent unlawful
9discrimination.

10(c) Every state contract and subcontract for public works or for
11goods or services shall contain a nondiscrimination clause
12prohibiting discrimination on the bases enumerated in this part by
13contractors or subcontractors. The nondiscrimination clause shall
14contain a provision requiring contractors and subcontractors to
15give written notice of their obligations under that clause to labor
16organizations with which they have a collective bargaining or other
17agreement. These contractual provisions shall be fully and
18effectively enforced. This subdivision does not apply to a credit
19card purchase of goods of two thousand five hundred dollars
20($2,500) or less. The total amount of exemption authorized herein
21shall not exceed seven thousand five hundred dollars ($7,500) per
22year for each company from which a state agency is purchasing
23goods by credit card. It shall be the responsibility of each state
24agency to monitor the use of this exemption and adhere to these
25restrictions on these purchases.

26(d) The department shall periodically develop rules and
27regulations for the application and implementation of this section,
28and submit them to the council for consideration and adoption in
29accordance with the provisions of Chapter 3.5 (commencing with
30Section 11340) of Part 1. Those rules and regulations shall describe
31and include, but not be limited to, all of the following:

32(1) Procedures for the investigation, approval, certification,
33decertification, monitoring, and enforcement of nondiscrimination
34programs.

35(2) The size of contracts or subcontracts below which any
36particular provision of this section shall not apply.

37(3) The circumstances, if any, under which a contractor or
38subcontractor is not subject to this section.

P5    1(4) Criteria for determining the appropriate plant, region,
2division, or other unit of a contractor’s or subcontractor’s operation
3for which a nondiscrimination program is required.

4(5) Procedures for coordinating the nondiscrimination
5requirements of this section and its implementing rules and
6regulations with the California Plan for Equal Opportunity in
7Apprenticeship, with the provisions and implementing regulations
8of Article 9.5 (commencing with Section 11135) of Chapter 1 of
9Part 1, and with comparable federal laws and regulations
10concerning nondiscrimination, equal employment opportunity,
11and affirmative action by those who contract with the United States.

12(6) The basic principles and standards to guide the department
13in administering and implementing this section.

14(e) Where a contractor or subcontractor is required to prepare
15an affirmative action, equal employment, or nondiscrimination
16program subject to review and approval by a federal compliance
17agency, that program may be filed with the department, instead of
18any nondiscrimination program regularly required by this section
19or its implementing rules and regulations. Such a program shall
20constitute a prima facie demonstration of compliance with this
21section. Where the department or a federal compliance agency has
22required the preparation of an affirmative action, equal
23employment, or nondiscrimination program subject to review and
24approval by the department or a federal compliance agency,
25evidence of such a program shall also constitute prima facie
26compliance with an ordinance or regulation of any city, city and
27county, or county that requires an employer to submit such a
28program to a local awarding agency for its approval prior to
29becoming a contractor or subcontractor with that agency.

30(f) (1) Where the department determines and certifies that the
31provisions of this section or its implementing rules and regulations
32are violated or determines a contractor or subcontractor is engaging
33 in practices made unlawful under this part, the contractor or
34subcontractor shall be subject to a civil penalty of not less than ten
35thousand dollars ($10,000). The department may recommend
36additional appropriate sanctions to the awarding agency. Any such
37recommendation shall take into account the severity of the violation
38or violations and any other penalties, sanctions, or remedies
39previously imposed.

P6    1(2) (A) The penalty collected pursuant to paragraph (1) shall
2be deposited in the Fair Employment Fund, which is hereby created
3in the General Fund.

4(B) Notwithstanding Section 13340, all money transferred to
5the Fair Employment Fund is hereby continuously appropriated
6to the department without regard to fiscal years for enforcement
7of the Fair Employment and Housing Act and for education of
8employers and employees of their rights and responsibilities under
9the act.

10(C) Money appropriated to the department shall be used to
11supplement, not supplant, other funding available to the department
12for the purposes specified in subparagraph (B).

end delete


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