BILL ANALYSIS Ó
AB 1890
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ASSEMBLY THIRD READING
AB
1890 (Dodd)
As Amended May 31, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Labor |6-0 |Roger Hernández, Chu, | |
| | |Linder, McCarty, | |
| | |O'Donnell, Thurmond | |
| | | | |
|----------------+-----+----------------------+--------------------|
|Appropriations |15-5 |Gonzalez, Bloom, |Bigelow, Gallagher, |
| | |Bonilla, Bonta, |Jones, Obernolte, |
| | |Calderon, Chang, |Wagner |
| | |Daly, Eggman, Eduardo | |
| | |Garcia, Roger | |
| | |Hernández, Holden, | |
| | |Quirk, Santiago, | |
| | |Weber, Wood | |
| | | | |
| | | | |
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SUMMARY: Enacts the Equal Pay for Equal Work Act of 2016,
related to state contracting, as specified. Specifically, this
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bill:
1)Provides that an employer with 100 or more employees in the
state and a contract with the state of 30 days or more shall
submit a description of its nondiscrimination program to the
Department of Fair Employment and Housing (DFEH), and shall be
required to submit periodic reports (no more than annually) of
its compliance with that program.
2)Specifies that an employer with fewer than 100 employees or a
contract of less than 30 days may be required to submit a
nondiscrimination program.
3)Provides that a nondiscrimination program shall include
policies and procedures designed to ensure equal employment
opportunities for all applicants and employees, an analysis of
employment selection procedures, and a workforce analysis.
4)Specifies that the workforce analysis shall include the
following:
a) The total number of worker with a specific job category
identified by worker race, ethnicity, and sex.
b) The total wages required to be reported on Internal
Revenue Service Form W-2 for all workers in a specific job
category identified by worker race, ethnicity, and sex.
c) The total hours worked on an annual basis for all
workers in a specific job category identified by worker
race, ethnicity, and sex. Exempt employees shall be
presumed to work 40 hours a week for purposes of this
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reporting requirement.
5)Provides 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.
6)Specifies that this bill shall not be construed to negate
exemptions to specified requirements in existence on January
1, 2017, as specified.
7)Make related legislative findings and declarations.
FISCAL EFFECT: According to the Assembly Appropriations
Committee, the DFEH estimates General Fund administrative costs
of approximately $350,000 to collect and store nondiscrimination
program information and process anticipated Public Record Act
requests. In addition, this bill would result in significant
General Fund cost pressures, potentially in the millions of
dollars annually, to the extent DFEH choses to require 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 pay secrecy and the lack of robust and
reliable data on employee compensation impede our ability to
effectively enforce our equal pay laws. In 2014, to address
this lack of data, President Barack Obama directed the Secretary
of Labor to require federal contractors to submit data on
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employee compensation. Under the 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 (OFCC).
Supporters note that California has a similar nondiscrimination
reporting program under the Fair Employment and Housing Act.
The Nondiscrimination and Compliance Employment Program is a set
of specific and result-oriented procedures to which a contractor
or subcontractor commits itself to ensure equal employment
opportunity for all employees or applicants for employment.
Supporters state that 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.
This bill is substantially similar to AB 1354 (Dodd) of 2015.
AB 1354 was vetoed by Governor Brown.
Analysis Prepared by:
Ben Ebbink / L. & E. / (916) 319-2091 FN:
0003087
AB 1890
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