BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 1354 Hearing Date: 7/14/2015
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|Author: |Dodd |
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|Version: |7/7/2015 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Discrimination: equal pay: state contracting
DIGEST: This bill enacts the Equal Pay for Equal Work Act of
2015 and requires an employer with 100 or more employees, prior
to becoming a contractor or subcontractor with the state, to
submit a nondiscrimination program to the Department of Fair
Employment and Housing (DFEH) and to submit periodic reports, no
more than annually, of its compliance with that program.
ANALYSIS:
Existing law:
1)Authorizes state agencies to enter into contracts for the
acquisition of goods or services upon approval by the
Department of General Services and establishes rules governing
the awarding of contracts by state agencies, including general
requirements for competitive bidding on contracts for the
acquisition of goods or services.
2)Subjects an employer, who is, or wishes to become, a
contractor with the state for public works, or for goods or
services, to various nondiscrimination requirements.
3)Provides that prior to becoming a contractor or subcontractor
with the state, an employer may be required to submit a
nondiscrimination program to the DFEH for approval and
certification and also may be required to submit periodic
AB 1354 (Dodd) Page 2 of ?
reports of its compliance with that program.
This bill:
1)Requires an employer with 100 or more employees, prior to
becoming a contractor or subcontractor with the state, to
submit a nondiscrimination program to the DFEH and periodic
reports, no more than annually, of its compliance with that
program.
2)Provides that an employer with fewer than 100 employees may be
required to submit a nondiscrimination program, and if so
required shall comply with the requirements for employers with
100 or more employees.
3)Requires DFEH to define an "employee" for purposes of this Act
and provides that DFEH may require approval and certification
of a nondiscrimination program.
4)Stipulates that a nondiscrimination program must include
policies and procedures designed to ensure equal employment
opportunities for all applicants and employees, an analysis of
employment selection procedures, and a "work force analysis"
that includes the following:
a) An equal pay report containing the total number of
workers with a specific job category identified by worker
race, ethnicity, and gender;
b) Total wages required to be reported on Internal Revenue
Service Form W-2 for all workers within a specific job
category identified by worker race, ethnicity, and gender;
c) The total hours worked on an annual basis for all
workers within a specific job category identified by worker
race, ethnicity, and gender. (Exempt employees shall be
presumed to work 40 hours per week for purposes of this
reporting requirement.)
5)Makes various findings and declarations relative to the fact
that disparities in pay for women have numerous negative
impacts and states legislative intent to promote pay equity
and nondiscrimination and to obtain better data on pay equity
to fully address the problem.
AB 1354 (Dodd) Page 3 of ?
Background
Purpose of AB 1354. According to the author's office, this bill
would require state contractors with 100 or more employees to
submit an annual report to the DFEH that includes summary data
on the compensation paid to employees sorted by gender and race,
and a description of the employer's policies designed to ensure
pay equity and prevent unlawful discrimination.
The author's office references data from the United States
Census Bureau which found full-time working women, on average,
over the last decade, have continued to earn only 77 cents for
every dollar that a man earns. In 2013, that wage disparity
amounted to an average annual wage gap of $10,876 between
full-time working men and full-time working women - the
disparity is even greater for women of color, with African
American women earning only 64% of what white, non-Hispanic male
workers earn, and Latinas averaged just 56%.
The author's office points out that on August 6, 2014, the U.S.
Department of Labor's Office of Federal Contract Compliance
Programs issued a Notice of Proposed Rulemaking requiring
federal contractors and subcontractors to submit data on
employee compensation. Under terms of the proposed rule,
companies that have more than 100 employees and hold federal
contracts or subcontracts worth $50,000 or more for at least 30
days would have to submit an annual Equal Pay Report on employee
compensation to the Office of Federal Contract Compliance
Programs. 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 the Department of Labor summary data on the compensation paid
to their employees, including data by sex and race.
According to the author's office, 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.
AB 1354 (Dodd) Page 4 of ?
Prior/Related Legislation
SB 703 (Leno, 2015) prohibits a state agency from entering into
contracts for the acquisition of goods or services of one
hundred thousand dollars ($100,000) or more with a contractor
that discriminates between employees on the basis of gender
identity in the provision of benefits. (Pending in Assembly
Appropriations Committee)
AB 1960 (Dickinson, Chapter 861, Statutes of 2012) required the
Department of General Services to report on business
participation levels by lesbian, gay, bisexual, and transgender
(LGBT) owners in contracts, as specified, beginning January 1,
2013.
AB 17 (Kehoe, Chapter 752, Statutes of 2003), among other
things, prohibited a state agency from entering into a contract
for the acquisition of goods or services in the amount of
$100,000 or more with a contractor who, in the provision of
benefits, discriminates between employees with spouses and
employees with domestic partners, or discriminates between the
domestic partners and spouses of those employees, except under
specified circumstances.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
American Association of University Women
California Employment Lawyers Association
California Labor Federation
California Nurses Association
Consumer Attorneys of California
Equal Rights Advocates.
National Women's Law Center
9to5, National Association of Working Women
North Bay Labor Council, AFL-CIO
Women in Non Traditional Employment Roles
OPPOSITION:
Air Conditioning Sheet Metal Association
AB 1354 (Dodd) Page 5 of ?
Air-conditioning & Refrigeration Contractors Association
Associated Builders and Contractors of California
Associated General Contractors
California Business Properties Association
California Chamber of Commerce
California Legislative Conference of the Plumbing, Heating and
Piping Industry
California Manufacturers and Technology Association
Finishing Contractors Association of Southern California
National Electrical Contractors Association (California
chapters)
National Federation of Independent Business
United Contractors
Wall and Ceiling Alliance
ARGUMENTS IN SUPPORT: Proponents note that "the existing
nondiscrimination and compliance employment program established
in Government Code Section 12990 et seq) is a set of specific
and result-oriented procedures to which a contractor or
subcontractor commits itself to ensure employment opportunity
for all employees or applicants for employment. This bill would
build upon the existing nondiscrimination reporting program to
require state contractors to provide summary data on employee
compensation. This bill aims to achieve the same goal as the
2014 Presidential Memorandum - to help employers take proactive
measures to ensure fair pay for their employees. Simply
compiling the data will prompt some businesses to make necessary
changes."
ARGUMENTS IN OPPOSITION: Opponents argue that "current law
already requires state contractors to submit a nondiscrimination
program to the DFEH for all protected classifications under the
Fair Employment and Housing Act. These required reports include
the contractor's policies on antidiscrimination and an analysis
of employment selection procedures based on gender and race. In
addition, under existing law they must provide DFEH with a
'workforce analysis' that lists each job title, ranks the
employees from lowest to highest paid, as well as the total
number of male and female employees in those job titles, and the
wage rate of minorities in each job title." Additionally,
opponents note, "Existing law also precludes contractors who are
subject to a collective bargaining agreement from engaging in
any discrimination based upon gender or race, including
inequitable compensation for performing the same job."
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