BILL NUMBER: AB 1017 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 16, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
INTRODUCED BY Assembly Member Campos
FEBRUARY 26, 2015
An act to amend Section 12990 of the Government Code,
relating to discrimination, and making an appropriation therefor.
add Section 432.3 to the Labor Code, relating to em
ployers.
LEGISLATIVE COUNSEL'S DIGEST
AB 1017, as amended, Campos. Discrimination: equal pay:
state contracting. Employers.
Existing law imposes various restrictions on employers with
respect to applicants for employment. A violation of those
restrictions is a misdemeanor.
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.
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.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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.
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.
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.
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.
Vote: 2/3 majority . Appropriation:
yes no . Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 432.3 is added to the
Labor Code , to read:
432.3. An employer shall not do any of the following:
(a) Orally or in writing, personally or through an agent, publish,
list, or post, publicly or within the organization, or publish,
list, or post with any employment agency, job-listing service, or
Internet Web site, an advertisement to recruit candidates for hire or
independent contractors to fill a position within the organization,
without including the minimum rate of pay whether paid by the hour,
shift, day, week, salary, piece, commission, or other form of pay,
including overtime, with allowances, if any, claimed as part of the
minimum wage, including tip, meal, or lodging allowances. In
addition, an employer shall not pay wages for the position for less
than what were advertised.
(b) Orally or in writing, personally or through an agent, seek
salary history information, including, but not limited to,
compensation and benefits, from an applicant for employment for an
interview or as a condition of employment.
(c) Release the salary history of any current or former employee
to any prospective employer in response to a request as part of an
interview or hiring process without written authorization from the
current or former employee.
SEC. 2. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 12990 of the Government Code
is amended to read:
12990. (a) Any employer who is, or wishes to become, a contractor
with the state for public works or for goods or services is subject
to the provisions of this part relating to discrimination in
employment and to the nondiscrimination requirements of this section
and any rules and regulations that implement it.
(b) (1) Prior to becoming a contractor or subcontractor with the
state, an employer may be required to submit a nondiscrimination
program to the department for approval and certification and may be
required to submit periodic reports of its compliance with that
program.
(2) Prior to becoming a contractor or subcontractor with the
state, an employer with 100 or more employees shall submit an income
equality program to the department for approval and certification and
shall be required to submit periodic reports of its compliance with
that program. The income equality program shall include the
collection of summary data on the compensation paid to employees,
including data sorted by gender and race, and include policies
designed to ensure income equality and prevent unlawful
discrimination.
(c) Every state contract and subcontract for public works or for
goods or services shall contain a nondiscrimination clause
prohibiting discrimination on the bases enumerated in this part by
contractors or subcontractors. The nondiscrimination clause shall
contain a provision requiring contractors and subcontractors to give
written notice of their obligations under that clause to labor
organizations with which they have a collective bargaining or other
agreement. These contractual provisions shall be fully and
effectively enforced. This subdivision does not apply to a credit
card purchase of goods of two thousand five hundred dollars ($2,500)
or less. The total amount of exemption authorized herein shall not
exceed seven thousand five hundred dollars ($7,500) per year for each
company from which a state agency is purchasing goods by credit
card. It shall be the responsibility of each state agency to monitor
the use of this exemption and adhere to these restrictions on these
purchases.
(d) The department shall periodically develop rules and
regulations for the application and implementation of this section,
and submit them to the council for consideration and adoption in
accordance with the provisions of Chapter 3.5 (commencing with
Section 11340) of Part 1. Those rules and regulations shall describe
and include, but not be limited to, all of the following:
(1) Procedures for the investigation, approval, certification,
decertification, monitoring, and enforcement of nondiscrimination
programs.
(2) The size of contracts or subcontracts below which any
particular provision of this section shall not apply.
(3) The circumstances, if any, under which a contractor or
subcontractor is not subject to this section.
(4) Criteria for determining the appropriate plant, region,
division, or other unit of a contractor's or subcontractor's
operation for which a nondiscrimination program is required.
(5) Procedures for coordinating the nondiscrimination requirements
of this section and its implementing rules and regulations with the
California Plan for Equal Opportunity in Apprenticeship, with the
provisions and implementing regulations of Article 9.5 (commencing
with Section 11135) of Chapter 1 of Part 1, and with comparable
federal laws and regulations concerning nondiscrimination, equal
employment opportunity, and affirmative action by those who contract
with the United States.
(6) The basic principles and standards to guide the department in
administering and implementing this section.
(e) Where a contractor or subcontractor is required to prepare an
affirmative action, equal employment, or nondiscrimination program
subject to review and approval by a federal compliance agency, that
program may be filed with the department, instead of any
nondiscrimination program regularly required by this section or its
implementing rules and regulations. Such a program shall constitute a
prima facie demonstration of compliance with this section. Where the
department or a federal compliance agency has required the
preparation of an affirmative action, equal employment, or
nondiscrimination program subject to review and approval by the
department or a federal compliance agency, evidence of such a program
shall also constitute prima facie compliance with an ordinance or
regulation of any city, city and county, or county that requires an
employer to submit such a program to a local awarding agency for its
approval prior to becoming a contractor or subcontractor with that
agency.
(f) (1) Where the department determines and certifies that the
provisions of this section or its implementing rules and regulations
are violated or determines a contractor or subcontractor is engaging
in practices made unlawful under this part, the contractor or
subcontractor shall be subject to a civil penalty of not less than
ten thousand dollars ($10,000). The department may recommend
additional appropriate sanctions to the awarding agency. Any such
recommendation shall take into account the severity of the violation
or violations and any other penalties, sanctions, or remedies
previously imposed.
(2) (A) The penalty collected pursuant to paragraph (1) shall be
deposited in the Fair Employment Fund, which is hereby created in the
General Fund.
(B) Notwithstanding Section 13340, all money transferred to the
Fair Employment Fund is hereby continuously appropriated to the
department without regard to fiscal years for enforcement of the Fair
Employment and Housing Act and for education of employers and
employees of their rights and responsibilities under the act.
(C) Money appropriated to the department shall be used to
supplement, not supplant, other funding available to the department
for the purposes specified in subparagraph (B).