BILL ANALYSIS Ó
AB 1354
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GOVERNOR'S VETO
AB
1354 (Dodd)
As Enrolled September 10, 2015
2/3 vote
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|ASSEMBLY: |55-23 |(June 3, 2015) |SENATE: |26-13 |(September 4, |
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|ASSEMBLY: |54-25 |(September 8, | | | |
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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:
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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."
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
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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
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
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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.
GOVERNOR'S VETO MESSAGE:
This bill requires an employer with 100 or more employees to
submit the details of their nondiscrimination program to the
Department of Fair Employment and Housing and to submit periodic
reports of its compliance with that program prior to becoming a
contractor with the state.
Currently, the department requires all state contractors to
develop and implement a nondiscrimination program meeting
certain requirements and also certify that they have done so,
under penalty of perjury. Furthermore, the department has
existing authority to require a contractor to submit this
information prior to contracting with the state, if
noncompliance is suspected. In light of these factors, I do not
believe this bill is necessary at this time.
Analysis Prepared by:
Ben Ebbink / L. & E. / (916) 319-2091 FN:
0002496
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