BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1890


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          GOVERNOR'S VETO


          AB  
          1890 (Dodd)


          As Enrolled  September 2, 2016


          2/3 vote


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          |ASSEMBLY:  |55-23 |(June 2, 2016) |SENATE: |      | (August 22,     |
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          |ASSEMBLY:  |55-24 |(August 25,    |        |      |                 |
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          Original Committee Reference:  L. & E.


          SUMMARY:  Enacts the Equal Pay for Equal Work Act of 2016,  
          related to state contracting, as specified.


          The Senate amendments:









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          1)Add co-authors.


          2)Provide that the bill applies to an employer with a contract  
            with the state that amounts to $50,000 or more that either a)  
            is required by federal regulations to submit a specified  
            report to the United States Equal Opportunity Commission or b)  
            has 100 or more employees in the state. 


          3)Require the Department of Fair Employment and Housing (DFEH)  
            to make specified programs and reports available to the  
            Commission on the Status of Women and Girls.


          4)Specify that DFEH may also require an employer that is not  
            described above to submit a nondiscrimination program.


          5)Make other related and conforming changes.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, this bill would result in DFEH administrative costs  
          of approximately $350,000 annually to collect and store  
          specified workforce data on state contractors, and to process  
          additional Public Records Act requests for that data.  In  
          addition, this bill would result in major DFEH General Fund cost  
          pressures, to the extent the department exercises the authority  
          to require approval and certification of contractors'  
          nondiscrimination programs.  There could be additional  
          information technology costs of approximately $1 million  
          one-time and $160,000 ongoing, if DFEH were to collect and sort  
          data on contractors' workers by job category, race/national  
          origin, gender, wages, and hours worked.


          COMMENTS:  According to the author, this bill seeks to compile  








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          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  
          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.   
          The bill was vetoed by Governor Brown.


          GOVERNOR'S VETO MESSAGE:









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            I am returning Assembly Bill 1890 without my signature.


            This bill requires a firm with a state contract valued at  
            $50,000 or more that is required to submit an EEO-I report to  
            the U.S. Equal Employment Opportunity Commission to also  
            annually submit that report, or a nondiscrimination program  
            meeting specified requirements, to the Department of Fair  
            Employment and Housing.


            The Office of Compliance Programs within the Department of  
            Fair Employment and Housing already has access to EE0-1  
            reports submitted to the federal government by California  
            employers.  Additionally, and as I stated last year, the  
            Department currently requires all state contractors to develop  
            and implement a nondiscrimination program and has broad  
            authority to investigate, approve, certify, decertify, monitor  
            and enforce the obligation of state contractors not to  
            discriminate.  For these reasons, I do not believe this bill  
            is necessary.




          Analysis Prepared by:                                             
                          Benjamin Ebbink / L. & E. / (916) 319-2091  FN:  
          0005097


















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