BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1509 (Roger Hernández) - Employees: protected disclosures and complaints: retaliation ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 27, 2015 |Policy Vote: L. & I.R. 3 - 1, | | | JUD. 5 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 13, 2015 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 1509 would extend current-law employment retaliation protections to an employee who is a family member of a person who engaged in, or is perceived to have engaged in, legally protected conduct. Fiscal Impact: The Department of Industrial Relations (DIR) indicates that it would incur administrative costs (special funds) of $120,000 in the first year, and $112,000 ongoing to implement the provisions of the bill. Background: Current law prohibits an employer from discharging, AB 1509 (Roger Hernández) Page 1 of ? retaliating, or taking other adverse employment action against an employee because the employee has engaged in protected conduct, as specified, such as filing a complaint or claim with the Labor Commissioner. Additionally, AB 1897 (Roger Hernández), Chapter 728, Statutes of 2014, established client employer liability for certain violations for workers provided by a labor contractor. AB 1897 defined a "client employer" to mean a business entity that obtains or is provided workers to perform labor within its usual course of business from a labor contractor. Proposed Law: This bill would amend current law related to employment retaliation to extend protections to an employee who is a family member of a person who engaged in, or is perceived to have engaged in, protected conduct, as specified. Specifically, the bill would do the following. Prohibit an employer, or a person acting on behalf of the employer, from retaliating against an employee because he/she is a family member of a person who has, or is perceived to have, engaged in any protected activity under existing law. Provide that "employer" or "person acting on behalf of the employer" for purposes of these employment retaliation provisions includes a "client employer" or a "controlling employer," as currently specified. Specify that these provisions do not apply to claims that are a result of demotion, suspension, or discharge from employment for lawful conduct occurring during nonworking hours away from the employer's premises, unless the lawful conduct involves the exercise of employee rights otherwise covered in law. Staff Comments: In 2013, the Labor Commissioner received 3,514 complaints of employer retaliation, a number that is likely AB 1509 (Roger Hernández) Page 2 of ? understated. Current law does not address retaliation protection in cases where multiple family members work for the same employer. Situations have occurred where one employee engaged in protected activity, but the employer retaliated against the employee's co-worker family member (such as terminating the family member in retaliation for the others employee's protected activity). Current law is unclear about whether such conduct is unlawful. In at least one recent case (Su v. Siemens), current law was deemed not to extend protection in such a situation. In that case, a construction foreman made several safety-related complaints, and the employer terminated the employer's son, who also happened to be employed by the same employer. DIR anticipates increased administrative costs of $120,000 in the first year, and $112,000 ongoing to process additional complaints resulting from the bill. -- END --