BILL NUMBER: AB 1978	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 13, 2016
	AMENDED IN ASSEMBLY  MARCH 15, 2016

INTRODUCED BY   Assembly Member Gonzalez

                        FEBRUARY 16, 2016

   An act to  amend Section 90.5 of   add Part
4.2 (commencing with Section 1420) to Division 2 of  the Labor
Code, relating to employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1978, as amended, Gonzalez. Employment:  Department of
Industrial Relations: wage claims and retaliation complaints.
  property service workers. 
   Existing law establishes  within  the Department
of Industrial Relations  in the Labor and Workforce Development
Agency to foster, promote, and develop the welfare of the wage
earners of California, to improve their working conditions, and to
advance their opportunities for profitable employment. Existing law
establishes within the department  the Division of Labor
Standards Enforcement, which is vested with the general duty of
enforcing labor laws, including those relating to wage claims and
employer retaliation. Existing law requires the Labor Commissioner,
defined as the Chief of the Division of Labor Standards Enforcement,
to establish and maintain a field enforcement unit in order to ensure
that minimum labor standards are met.  Existing law requires
the commissioner to report annually to the Legislature, not later
than March 1, concerning the effectiveness of the field enforcement
unit, as specified.  
   The California Occupational Safety and Health Act of 1973
establishes certain safety and other responsibilities of employers
and employees, including a requirement that every employer establish,
implement, and maintain an effective injury prevention program. The
act requires the program to be written, except as specified, and to
include certain elements. 
   This bill would  require the Labor Commissioner to include
in the commissioner's report to the Legislature, as described above,
specified information on the status of wage claims and retaliation
complaints, including the average amount of time it takes for a wage
claim to receive a preliminary hearing and the current backlog of
claims and complaints.   establish specific standards
and protections for property service workers, to be known as the
Property Service Workers Protection Act, and define terms for its
purposes.  
   The bill would require the department, no later than July 1, 2017,
to develop worker and supervisor materials for a prescribed 4-hour
training regarding sexual harassment, sexual violence, and human
trafficking and to make those materials available to employers,
covered workers, and the public through, among other means, posting
on its Internet Web site. The bill would require the department by
that date to establish requirements for employers who provide
janitorial services to require that covered workers and supervisors,
at least annually, receive prescribed in-person training on sexual
harassment and sexual assault. The bill would require the department
to establish standards and requirements for trainers and
recordkeeping relating to training. The bill would require the
department by that date to establish a toll-free hotline for
reporting of complaints and incidents of workplace sexual harassment,
sexual violence, and human trafficking and require workplace notice
to employees of existing rights in this area.  
   The bill would require the Occupational Safety and Health
Standards Board, by July 1, 2017, to adopt standards developed by the
Division of Occupational Safety and Health that require an employer
to adopt a workplace sexual violence and sexual harassment prevention
plan as a part of its injury and illness prevention plan, to protect
covered workers from sexual violence and harassment.  
   The bill would require the registration of employers conducting
janitorial business, as prescribed, and establish specific authority
for the Director of Industrial Relations to enforce and implement
that requirement. The bill would set application and renewal fees.
The bill would prohibit an employer, on or after January 1, 2018,
from conducting any janitorial business without a valid registration.
The bill would require an employer to include specific information
in the registration application, subscribed and sworn to under
penalty of perjury, thereby imposing a state-mandated local program
by expanding the scope of the crime of perjury. The bill would
prohibit the granting of registration under specific circumstances,
authorize the director to revoke, suspend, or place a registration on
probation, as prescribed, and would void a registration in certain
circumstances. The bill would require the director, on and after
February 1, 2018, to maintain on the department's Internet Web site a
regularly updated, searchable database of registered employers, and,
on and after July 1, 2018, a searchable database regarding the
compliance and enforcement activities of the department.  
   The bill would establish various compliance and enforcement
provisions, including a requirement that the director establish a
Property Services Compliance Unit to enforce the act. The bill would
establish civil fines and provide for labor compliance agreements,
stop order authority, audits, and investigations. The bill would
impose a state-mandated local program by making it a crime to conduct
any janitorial business without a valid registration, or to fail to
observe a stop order. The bill would establish specific protections
against discrimination and retaliation for engaging in conduct
delineated in the bill, including civil and criminal penalties and a
right to take civil action.  
   The bill would require the deposit of registration fees and
specific civil fines in the State Janitorial Contractor Registration
Fund, which the bill would create, and make the moneys in the fund
available, upon appropriation, for the reasonable costs of
administering the registration of janitorial contractors and the
costs and obligations associated with the administration and
enforcement of the bill by the department. The bill, to provide
adequate cash flow for those purposes, would authorize the Director
of Finance, with the concurrence of the Secretary of the Labor and
Workforce Development Agency, to approve a short-term loan each
fiscal year from the Labor and Workforce Development Fund to the
State Janitorial Contractor Registration Fund.  
   The bill would require the department, before July 1, 2017, to
develop certain standards and procedures regarding violations of the
bill.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Part 4.2 (commencing with Section 1420)
is added to Division 2 of the   Labor Code   , to
read:  

      PART 4.2.  Property Service Workers Protection Act


      CHAPTER 1.  GENERAL


   1420.  (a) The Legislature finds and declares that in the
janitorial industry in this state:
   (1) Workers are widely victimized by wage theft, sexual harassment
and assault, failure to provide workers' compensation insurance, and
other "low-road" practices perpetrated by unscrupulous employers
that fail to comply with existing labor standards laws.
   (2) Contractors are often undercapitalized, change names, and
abuse their corporate identity; making it difficult for victimized
workers to secure meaningful legal relief.
   (3) While some "high-road" employers comply with labor standards
laws and invest in training and retaining a more skilled workforce,
these employers are undercut by low-road competitors in a continual
race to the bottom.
   (4) It is in the public interest that employers compete primarily
on the basis of quality, efficiency, and innovation, and not through
a race to the bottom that perpetuates substandard working conditions
and lack of compliance with labor standards laws.
   (5) Despite the state's efforts over the years to bring
underground economy practices in the janitorial industry under
control, these practices persist.
   (6) Absent additional regulation of labor standards by the state
to prevent the undercutting of high-road employers, the current
situation is unlikely to change.
   (7) Workers in janitorial occupations often work alone at night,
making them vulnerable to sexual violence and harassment while on the
job, a condition that is exacerbated by low pay, low job mobility,
and poor training. Adopting standards to protect workers from sexual
violence and sexual harassment should be an obligation of all
janitorial industry employers.
   (b) It is the intent of the Legislature in enacting this part to:
   (1) Direct the department to develop worker and supervisor
education materials regarding sexual harassment and sexual violence
that are tailored to the janitorial industry in the languages and
literacy levels appropriate to the janitorial workforce, and to
establish requirements for the frequency of that training for
supervisors and workers, and standards for trainers who are to
deliver training.
   (2) Direct the Occupational Safety and Health Standards Board to
require janitorial industry employers to include the training as part
of their injury and illness prevention plans.
   (3) Establish a system of janitorial contractor registration to
encourage labor standards compliance and to establish prompt and
effective sanctions for violating this part.
   1421.  This part shall be known, and may be cited, as the Property
Service Workers Protection Act.
   1422.  For purposes of this part:
   (a) "Covered laws" means Chapter 10 (commencing with Section
690.020) of Division 1 of Title 9 of Part 2 of the Code of Civil
Procedure, Article 1 (commencing with Section 12940) of Chapter 6 of
Part 2.8 of Division 3 of Title 2 of the Government Code, and the
Labor Code, including, but not limited to, Sections 96.8, 98, 238 to
238.5, inclusive, 558.1, and 2810, and Chapter 4.5 (commencing with
Section 1060) of Part 3.
   (b) "Covered worker" means a janitor, including any individual
working, whether as an employee, independent contractor, or a
franchisee, as a janitor, as that term is defined in the federal
Service Contract Act Directory of Occupations. If an individual's
work duties are predominantly those of a janitor as defined therein,
that person shall be deemed a janitor for purposes of this part.
   (c) (1) "Employer" means any person or entity that employs at
least one employee and one or more covered workers and that enters
into contracts, subcontracts, or franchise arrangements to provide
janitorial services. The term "employer" includes the term "covered
successor employer."
   (2) "Covered successor employer" means an employer who meets one
or more of the following criteria:
   (A) Uses substantially the same facilities, equipment,
supervisors, and workforce to offer substantially the same services
to substantially the same clients as a predecessor employer. An
employer that has operated with a valid registration for at least the
preceding three years shall not be considered a covered successor
employer for using substantially the same facilities, equipment,
supervisors, and workforce to substantially the same clients, if all
of the following apply:
   (i) The individuals in the workforce were not referred or supplied
for employment by the predecessor employer to the successor
employer.
   (ii) The successor employer has not had any interest in, or
connection with, the operation, ownership, management, or control of
the business of the predecessor employer within the preceding three
years.
   (iii) The successor employer has not been determined to have
violated any of the covered laws.
   (B) Shares in the ownership, management, control of the workforce,
or interrelations of business operations with the predecessor
employer.
   (C) Is an immediate family member of any owner, partner, officer,
licensee, or director of the predecessor employer or of any person
who had a financial interest in the predecessor employer. "Immediate
family member" means a spouse, parent, sibling, son, daughter, uncle,
aunt, niece, nephew, grandparent, mother-in-law, father-in-law,
brother-in-law, sister-in-law, or cousin.
   (d) "State Janitorial Contractor Registration Fund" or "fund"
means the State Janitorial Contractor Registration Fund established
in Chapter 5 (commencing with Section 1445).
   (e) "Standards board" means the Occupational Safety and Health
Standards Board.
   (f) "Supervisor" means any individual having the authority, in the
interest of the employer, to hire, transfer, suspend, lay off,
recall, promote, discharge, assign, reward, or discipline workers, or
the responsibility to direct them, or to adjust their grievances, or
effectively to recommend that action, if, in connection with the
foregoing, the exercise of that authority is not of a merely routine
or clerical nature, but requires the use of independent judgment.
      CHAPTER 2.  PROTECTIONS AGAINST WORKPLACE SEXUAL VIOLENCE AND
HARASSMENT


   1425.  (a) The department, no later than July 1, 2017, shall do
all of the following:
   (1) Develop worker and supervisor agendas, handouts, facilitation
guides, and other materials for a four-hour training regarding sexual
harassment, sexual violence, and human trafficking that are
appropriate for the janitorial industry and the languages and
literacy levels of covered workers.
   (A) Training materials shall include information related to:
definitions of workplace sexual harassment, sexual assault, and human
trafficking; employers' legal obligations to prevent sexual
harassment and assault; potential legal and disciplinary consequences
for employers and perpetrators of workplace sexual harassment and
assault; community, mental health, and legal resources locally
available for survivors of workplace sexual harassment or assault;
legal protections available to immigrant workers subjected to
workplace sexual harassment or sexual assault, including, but not
limited to, the federal U nonimmigrant status known as U visa, and
protections for victims of human trafficking; prevention, protection,
and reporting strategies for workplace sexual harassment, sexual
assault, or human trafficking; information on filing administrative
complaints with the appropriate state and federal agencies;
antiretaliation and other legal protections for those who have
experienced sexual harassment and sexual assault; information
regarding the Injury and Illness Protection Program of the Division
of Occupational Safety and Health, and other topics as the director
deems necessary for janitorial workers and supervisors.
   (B) The department shall provide these materials in all languages
that are the language spoken at home of at least 500 janitors (ACS
Occupation Code 4220) who reside in this state, as determined by the
most recent American Community Survey of the United States Census
Bureau.
   (C) The department shall update these materials on or before July
1 of each year and make them available to employers, covered workers,
and the public through, among other means, posting on its Internet
Web site.
   (2) Establish requirements that employers shall require all
covered workers and supervisors to, at least annually, receive
comprehensive, accurate and appropriate in-person training lasting at
least four hours regarding sexual harassment and sexual assault that
provides an opportunity for interactive questions and answers. These
mandatory trainings shall use the worker and supervisor training
materials in paragraph (1) of subdivision (a) and shall be delivered
in the primary language spoken by at least 25 percent of the employer'
s covered workers. Employers shall provide these in-person trainings
at no cost to all covered workers and to all supervisors of covered
workers on at least an annual basis and within 30 days of hire.
Employers shall pay employees and supervisors at their regular rate
of pay for participating in these trainings or, if required by law,
at their overtime rate of pay.
   (3) Establish minimum qualification standards for trainers who may
deliver training, including but not limited to, a minimum of five
years of experience conducting adult education with the demographics
of the janitorial workforce. The collective bargaining agent that
represents the employer's covered workers or the designee of the
collective bargaining agent may deliver trainings.
   (4) Establish requirements for employers to maintain accurate
records documenting the delivery of training by qualified trainers
which includes: sign-in sheets with the participants' and qualified
trainer's signatures; a listing of the names, addresses, and
telephone numbers of the participants and of the qualified trainers;
and a copy of the materials provided and used in the training.
   (5) Establish a toll-free hotline for the reporting of complaints
and incidents of workplace sexual harassment, sexual assault, and
human trafficking to the Division of Occupational Safety and Health,
the Department of Fair Employment and Housing, and to the National
Human Trafficking Resource Center. The hotline shall provide service
in all the languages that meet the requirements of subparagraph (B)
of paragraph (1).
   (6) Require employers to post and display prominently a notice, of
a size, form, and content as the director prescribes, in a
conspicuous place where it may be read by covered workers during work
hours, and in all places where notices to covered workers are posted
both physically and electronically. The notice shall inform covered
workers of their rights under the sexual harassment and human
trafficking laws, contain examples of illegal employer conduct,
provide the hotline number in paragraph (5) and provide the contact
information for local resources to assist those who have experienced
sexual harassment and human trafficking. Where a significant portion
of the employer's workforce of covered workers is not proficient in
English, the employer shall provide the notice in the language the
covered workers speak. The department shall develop an approved
notice in all languages that meet the requirements of subparagraph
(B) of paragraph (1) and make that notice available on its Internet
Web site.
   (7) Appoint an advisory group of stakeholders to assist the
department in carrying out its responsibilities under this
subdivision. The advisory group shall include representatives from a
nonprofit organization that advocates for standards to protect
workers in the janitorial industry from workplace sexual harassment
and assault and from a labor organization that represents covered
workers.
   (8) Adopt regulations as the department determines to be necessary
to carry out this subdivision.
   (b) The standards board, by no later than July 1, 2017, shall
adopt standards developed by the Division of Occupational Safety and
Health that require an employer to adopt a workplace sexual violence
and sexual harassment prevention plan, as a part of its injury and
illness prevention plan, to protect covered workers from sexual
violence and harassment.
   (c) The standards adopted pursuant to subdivision (b) shall
include all of the following:
   (1) A requirement that the workplace sexual violence and sexual
harassment prevention plan shall be in written form for all
employers.
   (2) A requirement that the workplace sexual violence and sexual
harassment prevention plan include specific means for janitors who
work during the nighttime or early morning hours to work in pairs, or
to have an equivalent form of protection.
   (3) A requirement that the workplace sexual violence and sexual
harassment prevention plan include specific protections for janitors
against violence and sexual harassment from clients, coworkers, and
outsiders.
   (4) A requirement that all workplace sexual violence and sexual
harassment prevention plans be developed in conjunction with covered
workers, including their recognized collective bargaining agents, if
any.
   (5) A requirement that all workplace sexual violence and sexual
harassment prevention plans include the training of all covered
workers and supervisors of covered workers consistent with
subdivision (a).
   (6) A requirement that employers maintain records of complaints
and incidents of workplace sexual violence and sexual harassment,
including the date, number of employees involved, nature of the claim
or incident, worksite location, investigation steps and results of
the employer's investigation.
   (7) A requirement that employers screen supervisors for
convictions of any of the acts listed in subdivision (c) of Section
290 of the Penal Code, for being listed on the registered sex
offender database under the Sex Offender Registration Act (Chapter
5.5 (commencing with Section 290) of Title 9 of Part 1 of the Penal
Code), and for any civil judgments for having committed sexual
harassment.
   (8) A requirement for the reporting of complaints and incidents of
workplace sexual violence and sexual harassment to appropriate
agencies including, but not limited to, the Department of Fair
Employment and Housing, the Division of Occupational Safety and
Health, and the National Human Trafficking Resource Center.
   (d) This section does not limit the authority of the standards
board to adopt standards to protect employees from workplace violence
or harassment. Nothing in this section shall be interpreted to
preclude the standards board from adopting standards that require
other employers to adopt plans to protect employees from workplace
violence or harassment. Nothing in this section shall be interpreted
to preclude the standards board from adopting standards that require
an employer subject to this section, or any other employer, to adopt
a workplace violence or harassment prevention plan that includes
elements or requirements additional to, or broader in scope than,
those described in this section.
      CHAPTER 3.  REGISTRATION OF JANITORIAL CONTRACTORS


   1430.  (a) The director shall have broad authority to enforce and
implement this part. This authority includes, but is not limited to:
   (1) Maintaining the janitorial contractor registry, list, and
Internet Web site.
   (2) Negotiating, monitoring and enforcing labor compliance
agreements.
   (3) Conducting random and nonrandom audits or investigations of
complaints, or both audits and investigations.
   (4) Issuing, renewing, denying renewal of, suspending, revoking,
or placing on probation an employer's registration.
   (5) Issuing civil fines and stop orders.
   (6) Other powers as determined by the director that are necessary
to interpret, implement, and enforce this chapter.
   (b) The director may establish through the adoption of regulations
any procedures it determines to be necessary to carry out this part.

   1431.  (a) On and after January 1, 2018, no employer may conduct
any janitorial business without a valid registration under this
section, and all employees shall be registered with the department
pursuant to this section.
   (b) To qualify for a certificate of registration or for a
certificate of registration renewal under this section, an employer
shall, in a manner prescribed by the director, do all of the
following:
   (1) Beginning July 1, 2017, register with the department and pay
an initial nonrefundable application fee of one thousand dollars
($1,000) and an annual renewal fee of one thousand dollars ($1,000)
on or before July 1 of each year thereafter. The director may adjust
the initial registration and renewal fees no more than annually to
support the costs specified in Section 1445.
   (2) Execute a written application, subscribed and sworn to by the
employer under penalty of perjury under the laws of this state that
contains all of the following:
   (A) The name of the employer and, if applicable, its fictitious
business name.
   (B) The form of the employer and, if a corporation, all of the
following:
   (i) The date of incorporation.
   (ii) The state in which incorporated.
   (C) If a foreign corporation, the date the articles of
incorporation were filed with the California Secretary of State.
   (D) Whether the corporation is in good standing with the
California Secretary of State.
   (E) The federal employer identification number (FEIN) and the
state employer identification number (SEIN) of the employer.
   (F) The employer's business address, telephone number, fax number,
and email address.
   (G) The name and title of the manager, officer, or shareholder who
will serve as the qualifying individual to meet the examination
requirements in paragraph (4).
   (H) The names, residential addresses, business addresses,
telephone numbers, email addresses and Social Security numbers,
federal employer identification number (FEIN) or the state employer
identification number (SEIN) of the following persons:
   (i) All corporate officers, if the employer is a corporation.
   (ii) All persons exercising management responsibility in the
employer's office, regardless of the form of the business entity.
   (iii) The franchisor, if the employer is a franchise.
   (iv) All shareholders holding at least 10 percent of the
outstanding voting shares of the employer, if the employer has
shareholders, and the actual percent owned by each of those
shareholders.
   (v) All persons who have a financial interest of 10 percent or
more in the employer's business, regardless of the form of business
entity, and the actual percentage owned by each of those persons.
   (I) The total number of covered workers who are employees of the
employer.
   (J) The total number of covered workers who are independent
contractors of the employer.
   (K) The employer's total annual payroll-related expenses over the
last 12 months.
   (L) Whether the employer uses a professional employer organization
or leasing employer.
   (M) Whether the employer has instituted an alternative work week
pursuant to Section 511.
   (N) Name, address and telephone number of any recognized
collective bargaining agent representing the covered workers.
   (O) Whether the application is for a new or renewal registration
and, if the application is for a renewal, the prior registration
number.
   (P) Whether the employer is also a covered successor employer, and
if so, the information in subparagraphs (A) to (C), inclusive, (E),
and (F) for the predecessor employer.
   (Q) Certification that the information submitted to the director
under this subparagraph and paragraph (3) is complete.
   (R) A written pledge under penalty of perjury under the laws of
this state that the employer shall:
   (i) Comply with all applicable federal, state, and local laws and
regulations during the upcoming year, including, but not limited to,
laws regarding health and safety, labor and employment, wage and
hour, and licensing laws that affect workers.
   (ii) Timely notify the director as required by paragraphs (1) and
(2) of subdivision (c).
   (S) Such other information as the director requires for the
administration and enforcement of this chapter.
   (3) Provide evidence, disclosures under penalty of perjury under
the laws of this state, or releases as are necessary to establish all
of the following:
   (A) Workers' compensation coverage that complies with Division 4
(commencing with Section 3200) and includes sufficient coverage for
any covered worker. Coverage may be evidenced by a current and valid
certificate of workers' compensation insurance or certification of
self-insurance required under Section 7125 of the Business and
Professions Code.
   (B) The employer does not have any delinquent liability to a
worker or the state for any assessment of back wages or related
damages, interest, fines, or penalties pursuant to any final
judgment, order, or determination by a court or any federal, state,
or local administrative agency, including a confirmed arbitration
award. However, for purposes of this subparagraph, the employer shall
not be disqualified for any judgment, order, or determination that
is under appeal, provided that the employer has secured the payment
of any amount eventually found due through a bond or other
appropriate means.
   (C) Any administrative merits determinations, arbitral awards or
decisions, civil judgments, or criminal judgments rendered against
the employer within the preceding three-year period for violating
covered laws. A covered successor employer shall provide this
information both for itself and for its predecessor employer. At
minimum, the employer shall provide:
   (i) The law violated.
   (ii) The case number, inspection number, charge number, docket
number, or other unique identification number.
   (iii) The date rendered.
   (iv) The name of the court, arbitrator, agency, board, or
commission rendering the determination or decision.
   (v) A copy of the administrative merits determination, arbitral
award or decision, or civil or criminal judgment document.
   (D) A sexual violence and sexual harassment prevention plan that
meets the requirements of subdivision (b) of Section 1425.
   (E) Within the last 12 months, the employer has screened all
supervisors for convictions of any of the acts listed in subdivision
(c) of Section 29 of the Penal Code, for being listed on the
registered sex offender database under the Sex Offender Registration
Act (Chapter 5.5 (commencing with Section 290) of Title 9 of Part 1
of the Penal Code), and for any civil judgments for having committed
sexual harassment.
   (F) Other information as the director requires for the
administration and enforcement of this chapter.
   (4) Designate a qualifying individual as described in subparagraph
(G) of paragraph (2), to take a written examination that
demonstrates an essential degree of knowledge of the current state
laws and regulations that apply to employers as the director deems
necessary for the safety and protection of employers, covered
workers, and the public, including the identification and prevention
of sexual harassment in the workplace. To
                        successfully complete the examination, the
qualifying individual shall correctly answer at least 85 percent of
the questions. The examination may only be taken a maximum of three
times per calendar year. The examination shall include a
demonstration of the current laws and regulations regarding wages,
hours, and working conditions, workplace discrimination and sexual
harassment, collective bargaining, workers' compensation, health and
safety, the Displaced Janitor Opportunity Act (Chapter 4.5
(commencing with Section 1060) of Part 3), Section 2810, and
penalties and enforcement of those laws.
   (c) After an employer is registered or has renewed its
registration, the employer shall:
   (1) Notify the director within 30 calendar days of all
administrative merits determinations, arbitral awards or decisions,
and civil or criminal judgments rendered against the employer for
violating any covered laws.
   (2) Provide the director within 30 calendar days updated responses
to the written registration or renewal application if any change
occurs that would change any response contained within the completed
written application.
   1432.  The employer shall:
   (a) After July 1, 2017, maintain records of the sign-in sheets and
materials consistent with paragraph (4) of subdivision (a) of
Section 1425. These records shall be available for inspection by the
department and shall be maintained in a manner that meets the
requirements issued by the department under subdivision (a) of
Section 1425.
   (b) Post and display prominently in a conspicuous place where it
may be read by covered workers during work hours, and in all places
where notices to covered workers are posted both physically and
electronically:
   (1) By July 1, 2017, the notice in paragraph (6) of subdivision
(a) of Section 1425.
   (2) By January 1, 2018, a copy of the employer's current
certificate of registration.
   1433.  (a) The director shall not grant registration or renewal of
registration:
   (1) To any employer who has a record of serious, repeated,
willful, or pervasive violations of covered laws, including any
covered successor employer who either alone or in combination with
its predecessor employer has such a record, unless the employer has
remediated the violation by entering into and fulfilling the terms of
a labor compliance agreement as described in Section 1436.
   (2) To any employer who has failed to provide the director
evidence of workers' compensation coverage that meets the
requirements of subparagraph (A) of paragraph (3) of subdivision (b)
of Section 1431 or who lacks that coverage.
   (3) To any employer who has failed to provide the director
evidence that it does not have any delinquent liability to a worker
or to the state as described in subparagraph (B) of paragraph (3) of
subdivision (b) of Section 1431, or who has such liability.
   (4) To any employer who has failed to provide the director
evidence of a sexual violence and sexual harassment prevention plan
that meets the requirements of subdivision (b) of Section 1425, or
who lacks such a plan.
   (5) To any employer whose qualifying individual has not achieved a
passing score on the written examination in paragraph (4) of
subdivision (b) of Section 1431.
   (6) To any employer who has not submitted the complete fees,
application, information, and evidence as required by subdivision (b)
of Section 1431.
   (7) To any employer who willfully made false statements in its
application.
   (b) The director may revoke, suspend, or place a registration on
probation if:
   (1) The employer has violated or failed to comply with any
provision of this chapter.
   (2) The employer has made any misrepresentations or false
statements in his or her registration or registration renewal
application, or in response to the director's request for
information.
   (3) The employer has failed to respond to the director's request
for information within 10 days of such a request.
   (4) The employer has failed to notify the director or to provide
the director with updated responses within 30 days as required by
paragraphs (1) or (2) of subdivision (c) of Section 1431.
   (5) The employer has not complied with its labor compliance
agreement.
   (6) The conditions under which the registration was issued have
changed or no longer exist.
   (7) The employer has not complied with the posting and
recordkeeping requirements of Section 1432.
   (8) An employer's registration has been revoked within three years
from the date of application.
   (c) When determining whether to suspend, revoke, or place a
registration on probation, the director shall take into consideration
as a mitigating factor whether the employer has entered into or
otherwise fulfilled the terms of a labor compliance agreement as
described in Section 1436.
   (d) An employer's registration is void when:
   (1) The employer ceases conducting any janitorial business.
   (2) The employer changes its form of legal entity.
   (3) The employer transfers its registration.
   (4) The director revokes an employer's registration.
   (e) At least 30 days prior to the expiration of each employer's
registration, the director shall mail or email a renewal notice to
the last known mailing or email address of the employer. However,
omission of the director to provide the renewal notice in accordance
with this subdivision shall not excuse an employer from making timely
application for renewal of registration, shall not be a defense in
any action or proceeding involving failure to renew registration, and
shall not subject the director to any legal liability.
   (f) Fees received pursuant to this section shall be deposited in
the fund established in Chapter 5 (commencing with Section 1445) and
shall be used only for the purposes specified in that chapter.
   1434.  (a) On and after February 1, 2018, on the department's
Internet Web site, the director shall maintain a regularly updated,
searchable database of registered employers. The database will have
the capability to search all data, at minimum, for the past 10 years,
and shall include all the following information:
   (1) The name, address, telephone number, and registration number
of the employer.
   (2) If the employer is a successor employer, the registration
number of any predecessor employers.
   (3) The business addresses, telephone numbers, and email addresses
of the persons that the employer submitted under subparagraph (H) of
paragraph (2) of subdivision (b) of Section 1431, and, if the
employer's application listed anyone in clauses (iv) and (v), the
percent financial interest owned by that person or shareholder.
   (4) The current status and effective dates of the employer's
registration.
   (5) The identity of the employer's recognized collective
bargaining agent, if any.
   (6) A listing of any past denials, revocations, or suspensions of
the employer's registration, including the effective dates of those
past denials, revocations, or suspensions, as well as the basis for
them
   (7) A listing of any civil fines or stop orders issued against the
employer under this part, including the dates of those fines or stop
orders, and the basis for them.
   (8) A listing of all labor compliance agreements the employer has
executed, and their effective dates.
   (9) A copy of all labor compliance agreements the employer has
executed.
   (10) Other information as deemed necessary by the director.
   (b) On and after July 1, 2018, on the department's Internet Web
site, the director shall maintain a searchable database regarding its
compliance and enforcement activities. The department shall update
this information on or before July 1 of every year. The database
shall have the capability to search all data, at minimum, for the
past 10 years and shall include all the following information:
   (1) The total number of employers with current, valid registration
that meets the requirements under Section 1431.
   (2) The total number of employers whose registration was revoked
or suspended, or who have been placed on probation within the last 12
months, categorized by the basis of that revocation, suspension, or
probation.
   (3) The total number of employers who have entered into a labor
compliance agreement with the director within the last 12 months.
   (4) The total amount of fines and the total number of employers
that the department has cited under Section 1437 within the last 12
months, categorized by the basis of those fines.
   (5) The total number of employers who have been issued stop orders
under Section 1438 over the last 12 months, categorized by the basis
of those stop orders.
   (6) The total number of audits initiated and completed by the
department under Section 1439, within the last 12 months.
   (7) The total number of complaints investigated by the department
under Section 1440, within the last 12 months.
   (8) Other information as deemed necessary by the director.
      CHAPTER 4.  ENFORCEMENT


   1435.  The director shall establish a Property Services Compliance
Unit to enforce this part, including, but not limited to:
   (a) Maintaining the janitorial contractor registry, list, and
Internet Web site.
   (b) Negotiating and enforcing labor compliance agreements.
   (c) Conducting audits and investigating complaints.
   1436.  Whenever an employer has a record of serious, willful, or
pervasive violations of the laws or has violated one or more
provisions of this part, the director may seek to negotiate and enter
into a labor compliance agreement with the employer. The labor
compliance agreement addresses appropriate remedial measures,
compliance assistance, and any steps to resolve issues to increase
compliance with covered laws, the requirements of this part, or other
related matters. The employer shall comply with the terms of the
labor compliance agreement. Covered workers affected by an employer's
record of serious, willful, or pervasive violations of the laws or
who have initiated a complaint against an employer for its violations
of this part shall have an opportunity to participate in the
development and monitoring of such labor compliance agreements. If
the covered workers are represented by a collective bargaining agent,
their collective bargaining agent shall have that opportunity as
well. The director may seek to engage a labor-management cooperation
committee established pursuant to the federal Labor Management
Cooperation Act of 1978 (Section 175a of Title 29 of the United
States Code) whose members include a collective bargaining agent that
represents covered workers in the development and monitoring of any
labor compliance agreement.
   1437.  (a) An employer that meets any of the following
requirements is subject to the following civil fines, either
individually or in combination with one another:
   (1) An employer that pursuant to this part, fails to register or
to renew its registration is subject to a civil fine of not more than
two hundred dollars ($200) for each calendar day, or portion
thereof, that the employer conducts any janitorial business without
registering or renewing its registration.
   (2) An employer that fails to submit correct information to the
department or that fails to provide information requested by the
department within 10 days of such a request, is subject to a civil
fine of not more than two hundred dollars ($200) for each calendar
day, or portion thereof, that the employer conducts any janitorial
business without submitting the correct information to the department
or providing the information requested by the department.
   (3) An employer that fails to comply with its labor compliance
agreement, is subject to a civil fine of not more than two hundred
dollars ($200) for each calendar day, or portion thereof, that the
employer conducts any janitorial business without complying with its
labor compliance agreement.
   (4) An employer that fails to notify the director within 30
calendar days as required in paragraph (1) of subdivision (c) of
Section 1431, is subject to a civil fine of not more than two hundred
dollars ($200) for each calendar day, or portion thereof, that the
employer conducts any janitorial business without notifying the
director.
   (5) An employer that fails to provide the director with updated
responses within 30 calendar days as required in paragraph (2) of
subdivision (c) of Section 1431, is subject to a civil fine of not
more than two hundred dollars ($200) for each calendar day, or
portion thereof, that the employer conducts any janitorial business
without notifying the director.
   (b) The amount of the civil fine or fines in subdivision (a) shall
be determined by the director based on consideration of the
following:
   (1) Whether the failure of the employer was a good faith mistake,
and, if so, whether the error was promptly and voluntarily corrected
when brought to the attention of the employer.
   (2) Whether the employer has a prior record of failing to comply
with the requirements in this chapter.
   (3) Whether the employer has entered into and has currently
fulfilled the terms of a labor compliance agreement under Section
1436.
   (4) For each individual violation, the fine may not be less than:
   (A) One hundred dollars ($100) for each calendar day, or portion
thereof, unless the failure of the employer was a good faith mistake,
and, if so, the error was promptly and voluntarily corrected when
brought to the attention of the employer.
   (B) One hundred fifty dollars ($150) for each calendar day, or
portion thereof, if the employer has been assessed fines or a stop
order within the previous three years for failing to meet the
requirements of this part, unless those fines were subsequently
withdrawn or overturned.
   (C) Two hundred dollars ($200) for each calendar day, or portion
thereof, if the department determines that the violation was willful.

   (c) An employer who violates the posting and recordkeeping
requirements of Section 1432 shall be subject to civil fines of up to
seven thousand dollars ($7,000) per violation.
   (d) The determination by the director as to the amount of the
fines shall be reviewable only for abuse of discretion.
   (e) These civil fines may be assessed under a citation issued by
the Labor Commissioner and the procedures for issuing, contesting,
and enforcing judgments shall be the same as those set forth in
Section 1197.1.
   1438.  If an employer is conducting business without a valid
registration under Section 1431, the Labor Commissioner may issue and
serve on that employer a stop order prohibiting the use of labor by
that employer until the employer acquires a valid registration,
provided that the stop order would not compromise or imperil public
safety or the life, health, and care of vulnerable individuals. The
stop order shall also prohibit the employer from continuing to
provide services by conducting business using the labor of another
business, contractor, or subcontractor. The stop order shall become
effective immediately upon the service of the order. Any worker
affected by the work stoppage shall be paid by the employer for such
time lost, not exceeding 10 days, pending compliance by the employer.
The employer may protest the stop order by making and filing with
the Labor Commissioner a written request for a hearing within 20 days
after service of the stop order. The hearing shall be held within
five days from the date of filing the request. The Labor Commissioner
shall notify the employer of the time and place of the hearing by
mail. At the conclusion of the hearing, the stop order shall be
immediately affirmed or dismissed, and within 24 hours thereafter,
the Labor Commissioner shall issue and serve on all parties to the
hearing by registered or certified mail a written notice of findings,
accompanied by written findings. A writ of mandate may be taken from
the findings to the appropriate superior court. The writ shall be
taken within 45 days after the mailing of the notice of findings
accompanied by written findings. The Labor Commissioner may file an
action in superior court for injunctive and other appropriate relief
to enforce the stop order and shall be entitled to recovery of costs
and attorney's fees if any relief is obtained by the Labor
Commissioner.
   1439.  (a) On its Internet Web site, the department shall maintain
and update annually a list of known janitorial employers in
California. The list shall be based on information provided to the
department pursuant to Section 1431, and on any other sources of
information available.
   (b) In a manner prescribed by the director, the department shall
select employers as audit subjects for the purpose of determining
compliance with this part. The department shall select each employer
from the list of known janitorial employers at least once every five
years. Audit subjects may be selected in any order, and routine
audits may be scheduled in a manner to best minimize travel expenses
and use audit personnel efficiently.
   (c) The department may select audit subjects using random and
nonrandom selection methods. At least half of the audit subjects
shall be selected at random from the department's listing of known
janitorial employers. The final selection of audit subjects shall be
within the discretion of the department.
   (d) The department may investigate information or complaints in
addition to conducting an audit.
   1440.  The department shall conduct a reasonable and timely
investigation upon receiving a complaint regarding a potential
violation of the requirements of this part from a covered worker, a
collective bargaining agent that represents covered workers, or a
labor management cooperation committee established pursuant to the
federal Labor Management Cooperation Act of 1978 (Section 175a of
Title 29 of the United States Code) whose members include a
collective bargaining agent that represents covered workers. The
department shall make a written determination regarding the
disposition of each complaint within 30 days, which can be extended
by good cause by the director.
   1441.  (a) Any employer that conducts any janitorial business
after its registration has been suspended, revoked, or denied
reissuance is guilty of an offense punishable by a fine of not less
than ten thousand dollars ($10,000), or by imprisonment for not less
than six months and no more than one year, or both.
   (b) Any employer, owner, director, officer, or managing agent of
the employer who fails to observe a stop order issued and served upon
him or her pursuant to Section 1438 is guilty of a misdemeanor
punishable by imprisonment in county jail not exceeding 60 days or by
a fine not exceeding ten thousand dollars ($10,000), or both. For
the purposes of this section, the term "managing agent" has the same
meaning as in subdivision (b) of Section 3294 of the Civil Code.
   1442.  After January 1, 2018, any person or entity that hires an
employer that does not have a current, valid registration under
Section 1431 on the date the person or entity enters into or renews a
contract or subcontract for janitorial services with the employer,
shall share with that employer all civil legal responsibility and
civil liability for all violations of Article 1 (commencing with
Section 12940) of Chapter 6 of Part 2.8 of Division 3 of Title 2 of
the Government Code.
   1443.  (a) A person or entity shall not discharge an individual or
in any manner discriminate, retaliate, or take an adverse action
against any individual because the individual engaged in any conduct
delineated in this part.
   (b) Any individual who is discharged, threatened with discharge,
demoted, suspended, retaliated against, subject to an adverse action,
or in any other manner discriminated against in the terms or
conditions of his or her work because the individual engaged in any
conduct delineated in this part, shall be entitled to reinstatement
and reimbursement for lost wages and work benefits.
   (c) Any person or entity who willfully refuses to hire, promote,
or otherwise restore an individual, including a current or former
worker, who has been determined to be eligible for rehiring or
promotion by a grievance procedure, arbitration, or hearing
authorized by law, is guilty of a misdemeanor.
   (d) Any applicant for work who is refused work, or who in any
other manner is discriminated against in the terms and conditions of
any offer of work because the applicant engaged in any conduct
delineated in this part, shall be entitled to work and reimbursement
for lost wages and work benefits.
   (e) Any worker aggrieved by any violation of this section may
bring a civil action for injunctive relief or damages, or both,
against a registered or nonregistered employer who violates this
section, and, upon prevailing, shall recover reasonable attorney's
fees and costs, including expert witness fees.
   (f) In addition to other remedies available, a person or entity
who violates this section is liable for a civil penalty not exceeding
ten thousand dollars ($10,000) per individual for each violation of
this section, to be awarded to the individual or individuals who
suffered this violation.
      CHAPTER 5.  STATE JANITORIAL CONTRACTOR REGISTRATION FUND


   1445.  (a) The State Janitorial Contractor Registration Fund is
hereby created as a special fund in the State Treasury to be
available upon appropriation of the Legislature for the purposes
established in subdivision (b). All registration fees collected
pursuant to Section 1431, all civil fines collected pursuant to
Section 1437, and any other moneys as are designated by statute or
order shall be deposited in the fund.
   (b) Moneys in the fund shall be used only for the following
purposes:
   (1) The reasonable costs of administering the registration of
janitorial contractors pursuant to Section 1431.
   (2) The costs and obligations associated with the administration
and enforcement of this part by the department.
   (c) The annual employer registration renewal fee specified in
subdivision (b) of Section 1431, and any adjusted application renewal
fee, shall be set in amounts that are sufficient to support the
annual appropriation approved by the Legislature for the fund and not
result in a year-end fund balance greater than 25 percent of the
appropriation. Any year-end balance in the fund greater than 25
percent of the appropriation shall be applied as a credit when
determining any fee adjustments for the subsequent fiscal year.
   (d) To provide adequate cash flow for the purposes specified in
subdivision (b), the Director of Finance, with the concurrence of the
Secretary of the Labor and Workforce Development Agency, may approve
a short-term loan each fiscal year from the Labor and Workforce
Development Fund to the State Janitorial Contractor Registration
Fund.
   (1) The maximum amount of the annual loan allowable may be up to,
but shall not exceed, 50 percent of the appropriation authority of
the fund in the same year in which the loan was made.
   (2) For the purposes of this section, a "short-term loan" is a
transfer that is made subject to both of the following conditions:
                                                             (A) Any
amount loaned is to be repaid in full during the same fiscal year in
which the loan was made, except that repayment may be delayed until a
date not more than 30 days after the date of enactment of the annual
Budget Act for the subsequent fiscal year.
   (B) Loans shall be repaid whenever the funds are needed to meet
cash expenditure needs in the loaning fund or account.
      CHAPTER 6.  STANDARDS AND PROCEDURES


   1447.  Before July 1, 2017, the director shall develop all the
following standards and procedures:
   (a) For the determination whether administrative merits
determinations, arbitral awards or decisions, or civil or criminal
judgments of covered laws are for serious, repeated, willful, or
pervasive violations. Those standards shall:
   (1) Where available, incorporate existing statutory standards for
assessing whether a violation is serious, repeated, or willful.
   (2) Where no statutory standards exist, develop standards that
take into account the following for determining whether a violation
is:
   (A) "Serious"-- the number of workers affected, the degree of risk
posed or actual harm done by the violation to the health, safety, or
well-being of a worker, the amount of damages incurred or fines or
penalties assessed with regard to the violation, and other
considerations as the director finds appropriate.
   (B) "Repeated"-- whether the entity has had one or more additional
violations of the same or a substantially similar requirement in the
past five years.
   (C) "Willful"-- whether the entity knew of, showed reckless
disregard for, or acted with plain indifference to whether its
conduct was prohibited by covered laws.
   (D) "Pervasive"-- the number of violations of a requirement or the
aggregate number of violations of requirements in relation to the
size of the entity.
   (b) For a covered worker, a collective bargaining agent
representing covered workers, or a labor management cooperation
committee established pursuant to the federal Labor Management
Cooperation Act of 1978 (29 U.S.C. Sec. 175a), the membership of
which includes a collective bargaining agent that represents covered
workers, to file a complaint regarding an employer's failure to
comply with the requirements of this part, and for the department to
investigate and issue a written determination regarding each
complaint within 30 days, which period may be extended for good
cause.
   (c) For the suspension, revocation, or placement into probationary
status of an employer's registration.
   (d) For the department to negotiate and for the director to enter
into labor compliance agreements with employers as described in
Section 1436.
   (e) For the director to conduct random and nonrandom audits or
investigations, or both audits and investigations. 
   SEC. 2.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 90.5 of the Labor Code is
amended to read:
   90.5.  (a) It is the policy of this state to vigorously enforce
minimum labor standards in order to ensure employees are not required
or permitted to work under substandard unlawful conditions or for
employers that have not secured the payment of compensation, and to
protect employers who comply with the law from those who attempt to
gain a competitive advantage at the expense of their workers by
failing to comply with minimum labor standards.
   (b) In order to ensure that minimum labor standards are adequately
enforced, the Labor Commissioner shall establish and maintain a
field enforcement unit, which shall be administratively and
physically separate from offices of the division that accept and
determine individual employee complaints. The unit shall have offices
in Los Angeles, San Francisco, San Jose, San Diego, Sacramento, and
any other locations that the Labor Commissioner deems appropriate.
The unit shall have primary responsibility for administering and
enforcing those statutes and regulations most effectively enforced
through field investigations, including Sections 226, 1021, 1021.5,
1193.5, 1193.6, 1194.5, 1197, 1198, 1771, 1776, 1777.5, 2651, 2673,
2675, and 3700, in accordance with the plan adopted by the Labor
Commissioner pursuant to subdivision (c). Nothing in this section
shall be construed to limit the authority of this unit in enforcing
any statute or regulation in the course of its investigations.
   (c) The Labor Commissioner shall adopt an enforcement plan for the
field enforcement unit. The plan shall identify priorities for
investigations to be undertaken by the unit that ensure the available
resources will be concentrated in industries, occupations, and areas
in which employees are relatively low paid and unskilled, and those
in which there has been a history of violations of the statutes cited
in subdivision (b), and those with high rates of noncompliance with
Section 3700.
   (d) The Labor Commissioner shall annually report to the
Legislature, not later than March 1, concerning the following:
   (1) The effectiveness of the field enforcement unit. This part of
the report shall include, but not be limited to, all of the
following:
   (A) The enforcement plan adopted by the Labor Commissioner
pursuant to subdivision (c), and the rationale for the priorities
identified in the plan.
   (B) The number of establishments investigated by the unit, and the
number of types of violations found.
   (C) The amount of wages found to be unlawfully withheld from
workers, and the amount of unpaid wages recovered for workers.
   (D) The amount of penalties and unpaid wages transferred to the
General Fund as a result of the efforts of the unit.
   (2) The status of wage claims and retaliation complaints. This
part of the report shall include, but not be limited to, all of the
following:
   (A) The average amount of time it takes for a wage claim to
receive a preliminary hearing.
   (B) The number of determinations issued, the number of
investigative hearings held, the number of complaints dismissed, and
the number of complaints found valid, grouped by the year in which
the complaints were filed.
   (C) An update on the division's current backlog of wage claims and
retaliation complaints.
   (e) The report required by subdivision (d) shall be provided in
compliance with Section 9795 of the Government Code.