BILL ANALYSIS Ó
AB 1354
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1354 (Dodd) - As Introduced February 27, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill enacts the Equal Pay for Equal Work Act of 2015
related to state contracting. Specifically, this bill:
AB 1354
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1)Provides that, 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 of Fair
Employment and Housing (DFEH) for approval and certification
and shall be required to submit periodic reports of its
compliance with that program.
2)Specifies that 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.
FISCAL EFFECT:
1)Ongoing General Fund administrative costs to DFEH in the
millions of dollars to process thousands of contracts
annually.
Based on a review of the Department of General Services state
contract database, an average of 95,000 contracts were awarded
annually over a four year period. Assuming this number of
contracts, DFEH estimates approximately 80 ongoing positions
would be needed to maintain the database, generate reports,
provide correspondence and perform other administrative tasks.
This estimate does not include review of subcontractors
involved in these contracts. Information on subcontractors is
not currently readily available and would likely add
additional workload.
2)One-time costs to DFEH of approximately $1 million GF to
implement a software system to collect and compile data.
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COMMENTS:
1)Background. On August 6, 2014, the U.S. Department of Labor's
Office of Federal Contract Compliance Programs issued a Notice
of Proposed Rulemaking requiring covered federal contractors
and subcontractors with more than 100 employees to submit
electronically an annual equal pay report on employee
compensation. Information would include total number of
workers within a specific job category, total W-2 wages for
all workers on the job and total hours worked, broken down by
race, ethnicity and sex.
The proposal fulfills the Secretary of Labor's responsibility
under President Obama's Presidential Memorandum, 'Advancing
Pay Equality Through Compensation Data Collection,' to develop
a rule requiring federal contractors and subcontractors to
submit to DOL summary data on the compensation paid to their
employees, including data by sex and race.
2)Purpose. According to the author, this bill builds on the same
goal as President Obama's actions from last year through the
compilation of data on gender wage inequity among state
contractors and will ensure state contractors have policies
for preventing unlawful discrimination.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081
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