BILL ANALYSIS Ó AB 1042 Page 1 GOVERNOR'S VETO AB 1042 (Cooper) As Enrolled September 14, 2015 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |78-0 |(May 28, 2015) |SENATE: |38-0 |(September 9, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |80-0 |(September 10, | | | | | | |2015) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: B. & P. SUMMARY: Makes a number of changes to existing law related to proprietary private security officers. FISCAL EFFECT: According to the Senate Appropriations Committee, the Bureau of Security and Investigative Services AB 1042 Page 2 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. 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 AB 1042 Page 3 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. GOVERNOR'S VETO MESSAGE: This bill expands the definition of a proprietary private security officer to include either a person who wears a security uniform or provides a security function. Under this new definition more people would need to register with the Bureau of Security and Investigative Services. Registration and licensing can help protect consumers and the public, but they can also create barriers to entry. I am not convinced that enough evidence currently exists to justify expanding the definition of a proprietary private security officer to include bouncers who work at nightclubs and bars. Analysis Prepared by: Eunie Linden / B. & P. / (916) 319-3301 FN: 0002504 AB 1042 Page 4