BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1354


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1354 (Dodd)


          As Amended  September 2, 2015


          Majority vote


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          Original Committee Reference:  L. & E.


          SUMMARY:  Enacts the Equal Pay for Equal Work Act of 2015,  
          related to state contracting, as specified.


          The Senate amendments:


          1)Add co-authors.


          2)Specify that periodic reports by employers with 100 or more  
            employees shall be submitted no more than annually.


          3)Specify that the nondiscrimination program shall be required  
            for employers with 100 or more employees "in the state."










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          4)Provide that an employee in the construction industry covered  
            by a valid collective bargaining agreement shall be excluded  
            from the calculation of the employer's total number of  
            employees for purposes of the nondiscrimination program  
            requirement.


          5)Specify that this bill shall not be construed to negate  
            exemptions to specified requirements in existence on January  
            1, 2016, as specified.


          6)Delete reference in the work force analysis to an "equal pay  
            report."


          7)Change the word "gender" to "sex" throughout the bill.


          8)Specify that a specified work force analysis shall include the  
            total hours worked on an annual basis.  Exempt employees shall  
            be presumed to work 40 hours in a week for purposes of this  
            reporting requirement.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, this bill would result in minor and absorbable costs  
          to the Department of Fair Employment and Housing (DFEH) to  
          receive nondiscrimination programs.  This bill would result in  
          major DFEH cost pressures, potentially in the millions annually,  
          related to the approval and certification of contractors'  
          nondiscrimination programs.


          COMMENTS:  According to the author, this bill seeks to compile  
          data on gender wage inequity among state contractors and ensure  
          state contractors have policies for preventing unlawful  
          discrimination.


          Supporters argue that aggregate data on the wage gap women face  
          is available.  However, more nuanced data breaking down job  








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          category wages by gender and race has been not widely gathered.   
          In order to appropriately target efforts to reduce and eliminate  
          the wage gap, this data need to be collected.  Requiring wage  
          transparency ensures that employers are held accountable for  
          maintaining pay structures in compliance with equal pay laws.


          Opponents, including the California Chamber of Commerce, state  
          that this bill will place an additional barrier to state  
          contractors and expose them to enforcement actions for alleged  
          discrimination that is already addressed by existing law.  As a  
          preliminary matter, they note that the term "income equality  
          program" is undefined and, therefore, it is ambiguous as to what  
          information should or needs to be included other than data  
          regarding compensation and anti-discrimination policies.   
          Moreover, existing law already requires state contractors to  
          submit a "nondiscrimination program" to the DFEH that must  
          contain specific procedures to insure equal employment  
          opportunity for all protected classifications under the Fair  
          Employment and Housing Act, including gender and race. 


          Therefore, opponents contend that existing law already precludes  
                          a contractor from engaging in 


          any discrimination based upon gender or race, including  
          inequitable compensation for performing the same or similar job.  
           To the extent this bill is simply duplicating the information  
          already required in a nondiscrimination program, it is  
          unnecessary and will add an additional layer to a contractor's  
          bid with the state.  To the extent this bill is seeking more  
          information from contractors, it is unclear as to what the scope  
          of that information is or how it will indicate income inequality  
          based upon summary data of compensation.


          Analysis Prepared by:       Ben Ebbink / L. & E. / (916)  
          319-2091          FN: 0002072











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