BILL ANALYSIS Ó AB 1042 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1042 (Cooper) As Amended September 4, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 78-0 | (May 28, |SENATE: |38-0 | (September 9, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: L. & E. SUMMARY: Makes a number of changes to existing law related to proprietary private security officers. The Senate amendments: 1)Delay changing the definition of a proprietary private security officer until January 1, 2017. 2)Define "security services," as specified. 3)Effective January 1, 2017, exempt from the Proprietary Security Services Act an unarmed person who is employed by a retailer of merchandise at a retail merchandise store to report or prevent theft and who wears plain clothes or clothes AB 1042 Page 2 with only the logo or business name of the retailer of merchandise. 4)Effective January 1, 2017, exempt from the Proprietary Security Services Act an employee at an entertainment or sports venue, including, but not limited to, a theme or amusement park, and a theatrical screening, whose primary duties consist of screening guests and their personal items before venue entry, checking admission tickets, directing guests, or any combination of these duties, and seeking assistance from law enforcement or security personnel when that would be the ordinary and customary response of an employee in the event of an unapproved or unlawful entry or criminal act or disturbance. 5)Make additional clarifying and technical changes. 6)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 than frequently than weekly, regardless of when the assignment ends, and must be due and payable not later than the regular payday of the following workweek. EXISTING LAW: 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. AB 1042 Page 3 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. FISCAL EFFECT: According to the Senate Appropriations Committee, the Bureau of Security and Investigative Services would incur new staffing costs of $226,000 annually, fully offset by new licensing fee revenues. COMMENTS: This bill addresses two aspects of law related to private security officers. The first portion of this bill expands the number of private security officers who fall under the licensure and regulation of the Department of Consumer Affairs. These provisions are within the jurisdiction of the Assembly Business and Professions Committee. The second component of this bill addresses provisions related to the payment of wages of private security guards. This provision arises from 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. This bill 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. AB 1042 Page 4 The California Association of Licensed Security Agencies, Guards and Associates argues 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. They argue that this bill not an attempt to change the weekly payroll rule, but rather represents an industry specific standard that will assist temporary services employers in complying with the law without impacting the rights of employees. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0002226