BILL ANALYSIS Ó SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS Senator Tony Mendoza, Chair 2015 - 2016 Regular Bill No: AB 1042 Hearing Date: July 8, 2015 ----------------------------------------------------------------- |Author: |Cooper | |-----------+-----------------------------------------------------| |Version: |June 23, 2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Gideon Baum | | | | ----------------------------------------------------------------- Subject: Proprietary security services. KEY ISSUE Should the Legislature allow temporary services employers to pay temporary private security officers based on a workweek (Friday-Thursday) rather than a calendar week (Sunday-Saturday)? ANALYSIS Existing law: 1) Provides for the licensure and regulation of proprietary private security officers (PSOs) and proprietary private security employers (PPSEs) by the Bureau of Security and Investigative Services in the Department of Consumer Affairs (DCA). (Business and Professions Code (BPC) § 7574 et. seq.) 2) Defines a PSO as an unarmed individual who is employed exclusively by any one employer whose; primary duty is to provide security services for his or her employer, services are not contracted to any other entity or person, and meets both of the following criteria: AB 1042 (Cooper) Page 2 of ? i) Is required to wear a distinctive uniform clearly identifying the individual as a security officer. ii) Is likely to interact with the public while performing his or her duties. (BPC § 7574.01) 3) Prohibits any who is not registered with the Bureau from engaging in the business of a PSO. (BPC § 7574.10) Existing law also: 1) Defines "temporary services employer" as an employing unit that contracts with clients or customers to supply workers to perform services for the clients or customers and performs certain specified functions, including determining assignments and paying the worker. 2) Provides that a temporary services employer must pay his or her employees no less frequently than weekly and not later than the regular payday of the following calendar week. 3) Exempt temporary employees from the above-discussed requirements if the employee's assignment is for 90 days or longer and the employee is not currently paid weekly. This bill would: 1) Changes the definition of a PSO to require only one of the two criteria discussed above; 2) Clarify the definition of interacting with the public to include, but not limited to acting to prevent unapproved or unlawful entry, directing persons causing a disturbance to leave a facility, and ensuring that persons removing property from a facility are acting within appropriate policy requirements. 3) Provide that if an employee of a temporary services employer is employed as a registered security officer, his or her wages are due and payable no less frequently than weekly, regardless of when the assignment ends, and must be due and payable not later than the regular payday of AB 1042 (Cooper) Page 3 of ? the following workweek. COMMENTS 1. Need for this bill? Simply put, AB 1042 has two core components. The first component expands the number of private security officers who fall under the licensure and regulation of the Department of Consumer Affairs. This language was heard in the Senate Committee on Business and Professions and was voted out on an 8-1 vote. The second core component is on the pay provisions of private security guards, which is being heard for the first time in our Committee. This provision is born of a recent court case, Huff v. Securitas Security Services, Case No. 1-10-CV-172614 (2015). In that case, Securitas successfully argued that it has not violated the temporary services employer requirements as all of the claimants had assignments in excess of 90 days. However, in determining this calculation, the court used a calendar week of Sunday to Saturday, which is not the work week utilized by Securitas. Rather, this is the default calendar week used by the Division of Labor Standards Enforcement (DLSE) for enforcement purposes. Securitas and other security firms utilize a Friday to Thursday workweek, which Proponents note reflects the fact that their employees frequently work on the weekends, unlike many employers. AB 1042 would provide that, if a temporary employee is employed as a security officer, the employee's wages are due weekly and due and payable on the regular payday of the following workweek. 2. Proponent Arguments : Proponents argue that most security services firms define the workweek as Friday to Thursday, and that this schedule is born of the specific industrial requirements of the security industry. Proponents argue that AB 1042 not an attempt to change the weekly payroll rule, but rather an industry specific standard that will assist temporary services employers in complying with the law without impacting the AB 1042 (Cooper) Page 4 of ? rights of employees. 3. Opponent Arguments : None on file. 4. Prior Legislation : SB 940 (Yee), Chapter 169, Statutes of 2008, creates the temporary services employer pay provisions discussed above. SUPPORT California Association of Licensed Security Agencies, Guards and Associates OPPOSITION None received. -- END --