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
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          |Author:    |Cooper                                               |
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          |Version:   |June 23, 2015                                        |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|Gideon Baum                                          |
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                      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:









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                    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  







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                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  







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            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. 


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