Amended in Senate June 22, 2016

Amended in Assembly May 31, 2016

Amended in Assembly April 13, 2016

Amended in Assembly March 15, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1978


Introduced by Assembly Member Gonzalez

(Coauthors: Assembly Membersbegin insert Campos,end insert Chu,begin insert Cristina Garcia,end insert Lopez, McCarty, Rodriguez, Santiago, Thurmond, and Weber)

begin insert

(Coauthor: Senator Beall)

end insert

February 16, 2016


An act to amend Section 12940 of the Government Code, and to amend Section 1106 of, and to 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: property service workers.

Existing law establishes 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.

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 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 Labor Commissioner, no later than July 1, 2018, to develop worker and supervisor materials for a prescribed 4-hour training regarding sexual violence and sexual harassment 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 requirebegin insert theend insert commissioner, beginning July 1, 2019, to updatebegin delete thesesend deletebegin insert theseend insert materials annually. The bill would, on and after July 1, 2018, require employers who provide janitorial services to have a system to require that covered workers and supervisors, at least annually, receive prescribed in-person training on workplace sexual violence and sexual harassment. The bill would require the commissioner to establish standards and requirements for trainers and recordkeeping relating to training. The bill would require the Labor Commissioner to develop minimum qualifications for trainers who provide the training.

The bill would require the Occupational Safety and Health Standards Board, by January 1, 2018, to adopt standards developed by the Division of Occupational Safety and Health, in consultation with a specified advisory group, 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 workplace sexual violence and sexual harassment.

The bill would require the registration of employers conducting janitorial business, as prescribed, and establish specific authority for the Labor Commissioner to enforce and implement that requirement. The bill would set application and renewal fees. The bill would prohibit an employer, on or afterbegin delete Januaryend deletebegin insert Julyend insert 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 deny, suspend, or void a registration in certain circumstances. The bill would require the commissioner, on and after July 1, 2018, to maintain on the commissioner’s Internet Web site a regularly updated, searchable database of registered employers, and, on and after July 1, 2019, 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 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 commissioner. 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 make conforming changes regarding the definition of an employer.

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: yes.

The people of the State of California do enact as follows:

P4    1

SECTION 1.  

Section 12940 of the Government Code is
2amended to read:

3

12940.  

It is an unlawful employment practice, unless based
4upon a bona fide occupational qualification, or, except where based
5upon applicable security regulations established by the United
6States or the State of California:

7(a) For an employer, because of the race, religious creed, color,
8national origin, ancestry, physical disability, mental disability,
9medical condition, genetic information, marital status, sex, gender,
10gender identity, gender expression, age, sexual orientation, or
11military and veteran status of any person, to refuse to hire or
12employ the person or to refuse to select the person for a training
13program leading to employment, or to bar or to discharge the
14person from employment or from a training program leading to
15employment, or to discriminate against the person in compensation
16or in terms, conditions, or privileges of employment.

17(1) This part does not prohibit an employer from refusing to
18hire or discharging an employee with a physical or mental
19disability, or subject an employer to any legal liability resulting
20from the refusal to employ or the discharge of an employee with
21a physical or mental disability, where the employee, because of
22his or her physical or mental disability, is unable to perform his
23or her essential duties even with reasonable accommodations, or
24cannot perform those duties in a manner that would not endanger
25his or her health or safety or the health or safety of others even
26with reasonable accommodations.

27(2) This part does not prohibit an employer from refusing to
28hire or discharging an employee who, because of the employee’s
29medical condition, is unable to perform his or her essential duties
30even with reasonable accommodations, or cannot perform those
31duties in a manner that would not endanger the employee’s health
32or safety or the health or safety of others even with reasonable
33accommodations. Nothing in this part shall subject an employer
34to any legal liability resulting from the refusal to employ or the
35discharge of an employee who, because of the employee’s medical
36condition, is unable to perform his or her essential duties, or cannot
37perform those duties in a manner that would not endanger the
P5    1employee’s health or safety or the health or safety of others even
2with reasonable accommodations.

3(3) Nothing in this part relating to discrimination on account of
4marital status shall do either of the following:

5(A) Affect the right of an employer to reasonably regulate, for
6reasons of supervision, safety, security, or morale, the working of
7spouses in the same department, division, or facility, consistent
8with the rules and regulations adopted by the commission.

9(B) Prohibit bona fide health plans from providing additional
10or greater benefits to employees with dependents than to those
11employees without or with fewer dependents.

12(4) Nothing in this part relating to discrimination on account of
13sex shall affect the right of an employer to use veteran status as a
14factor in employee selection or to give special consideration to
15Vietnam-era veterans.

16(5) (A) This part does not prohibit an employer from refusing
17to employ an individual because of his or her age if the law
18compels or provides for that refusal. Promotions within the existing
19staff, hiring or promotion on the basis of experience and training,
20rehiring on the basis of seniority and prior service with the
21employer, or hiring under an established recruiting program from
22high schools, colleges, universities, or trade schools do not, in and
23of themselves, constitute unlawful employment practices.

24(B) The provisions of this part relating to discrimination on the
25basis of age do not prohibit an employer from providing health
26benefits or health care reimbursement plans to retired persons that
27are altered, reduced, or eliminated when the person becomes
28eligible for Medicare health benefits. This subparagraph applies
29to all retiree health benefit plans and contractual provisions or
30practices concerning retiree health benefits and health care
31reimbursement plans in effect on or after January 1, 2011.

32(b) For a labor organization, because of the race, religious creed,
33color, national origin, ancestry, physical disability, mental
34disability, medical condition, genetic information, marital status,
35sex, gender, gender identity, gender expression, age, sexual
36orientation, or military and veteran status of any person, to exclude,
37expel, or restrict from its membership the person, or to provide
38only second-class or segregated membership or to discriminate
39against any person because of the race, religious creed, color,
40national origin, ancestry, physical disability, mental disability,
P6    1medical condition, genetic information, marital status, sex, gender,
2gender identity, gender expression, age, sexual orientation, or
3military and veteran status of the person in the election of officers
4of the labor organization or in the selection of the labor
5organization’s staff or to discriminate in any way against any of
6its members or against any employer or against any person
7employed by an employer.

8(c) For any person to discriminate against any person in the
9selection, termination, training, or other terms or treatment of that
10person in any apprenticeship training program, any other training
11program leading to employment, an unpaid internship, or another
12limited duration program to provide unpaid work experience for
13that person because of the race, religious creed, color, national
14origin, ancestry, physical disability, mental disability, medical
15condition, genetic information, marital status, sex, gender, gender
16identity, gender expression, age, sexual orientation, or military
17and veteran status of the person discriminated against.

18(d) For any employer or employment agency to print or circulate
19or cause to be printed or circulated any publication, or to make
20any nonjob-related inquiry of an employee or applicant, either
21verbal or through use of an application form, that expresses,
22directly or indirectly, any limitation, specification, or discrimination
23as to race, religious creed, color, national origin, ancestry, physical
24disability, mental disability, medical condition, genetic information,
25 marital status, sex, gender, gender identity, gender expression,
26age, sexual orientation, or military and veteran status, or any intent
27to make any such limitation, specification, or discrimination. This
28part does not prohibit an employer or employment agency from
29inquiring into the age of an applicant, or from specifying age
30limitations, where the law compels or provides for that action.

31(e) (1) Except as provided in paragraph (2) or (3), for any
32employer or employment agency to require any medical or
33psychological examination of an applicant, to make any medical
34or psychological inquiry of an applicant, to make any inquiry
35whether an applicant has a mental disability or physical disability
36or medical condition, or to make any inquiry regarding the nature
37or severity of a physical disability, mental disability, or medical
38condition.

39(2) Notwithstanding paragraph (1), an employer or employment
40agency may inquire into the ability of an applicant to perform
P7    1job-related functions and may respond to an applicant’s request
2for reasonable accommodation.

3(3) Notwithstanding paragraph (1), an employer or employment
4agency may require a medical or psychological examination or
5make a medical or psychological inquiry of a job applicant after
6an employment offer has been made but prior to the
7commencement of employment duties, provided that the
8examination or inquiry is job related and consistent with business
9necessity and that all entering employees in the same job
10classification are subject to the same examination or inquiry.

11(f) (1) Except as provided in paragraph (2), for any employer
12or employment agency to require any medical or psychological
13examination of an employee, to make any medical or psychological
14 inquiry of an employee, to make any inquiry whether an employee
15has a mental disability, physical disability, or medical condition,
16or to make any inquiry regarding the nature or severity of a physical
17disability, mental disability, or medical condition.

18(2) Notwithstanding paragraph (1), an employer or employment
19agency may require any examinations or inquiries that it can show
20to be job related and consistent with business necessity. An
21employer or employment agency may conduct voluntary medical
22examinations, including voluntary medical histories, which are
23part of an employee health program available to employees at that
24worksite.

25(g) For any employer, labor organization, or employment agency
26to harass, discharge, expel, or otherwise discriminate against any
27person because the person has made a report pursuant to Section
2811161.8 of the Penal Code that prohibits retaliation against hospital
29employees who report suspected patient abuse by health facilities
30or community care facilities.

31(h) For any employer, labor organization, employment agency,
32or person to discharge, expel, or otherwise discriminate against
33any person because the person has opposed any practices forbidden
34under this part or because the person has filed a complaint, testified,
35or assisted in any proceeding under this part.

36(i) For any person to aid, abet, incite, compel, or coerce the
37doing of any of the acts forbidden under this part, or to attempt to
38do so.

39(j) (1) For an employer, labor organization, employment agency,
40apprenticeship training program or any training program leading
P8    1to employment, or any other person, because of race, religious
2creed, color, national origin, ancestry, physical disability, mental
3disability, medical condition, genetic information, marital status,
4sex, gender, gender identity, gender expression, age, sexual
5orientation, or military and veteran status, to harass an employee,
6an applicant, an unpaid intern or volunteer, or a person providing
7services pursuant to a contract. Harassment of an employee, an
8applicant, an unpaid intern or volunteer, or a person providing
9services pursuant to a contract by an employee, other than an agent
10or supervisor, shall be unlawful if the entity, or its agents or
11supervisors, knows or should have known of this conduct and fails
12to take immediate and appropriate corrective action. An employer
13may also be responsible for the acts of nonemployees, with respect
14to sexual harassment of employees, applicants, unpaid interns or
15volunteers, or persons providing services pursuant to a contract in
16the workplace, where the employer, or its agents or supervisors,
17knows or should have known of the conduct and fails to take
18immediate and appropriate corrective action. In reviewing cases
19involving the acts of nonemployees, the extent of the employer’s
20control and any other legal responsibility that the employer may
21have with respect to the conduct of those nonemployees shall be
22considered. An entity shall take all reasonable steps to prevent
23harassment from occurring. Loss of tangible job benefits shall not
24be necessary in order to establish harassment.

25(2) The provisions of this subdivision are declaratory of existing
26law, except for the new duties imposed on employers with regard
27to harassment.

28(3) An employee of an entity subject to this subdivision is
29personally liable for any harassment prohibited by this section that
30is perpetrated by the employee, regardless of whether the employer
31or covered entity knows or should have known of the conduct and
32fails to take immediate and appropriate corrective action.

33(4) (A) For purposes of this subdivision only, “employer” means
34any person regularly employing one or more persons or regularly
35receiving the services of one or more persons providing services
36pursuant to a contract, or any person acting as an agent of an
37employer, directly or indirectly, the state, or any political or civil
38subdivision of the state, and cities. The definition of “employer”
39in subdivision (d) of Section 12926 applies to all provisions of this
40section other than this subdivision.

P9    1(B) Notwithstanding subparagraph (A), for purposes of this
2subdivision, “employer” does not include a religious association
3or corporation not organized for private profit, except as provided
4in Section 12926.2.

5(C) For purposes of this subdivision, “harassment” because of
6sex includes sexual harassment, gender harassment, and harassment
7based on pregnancy, childbirth, or related medical conditions.
8Sexually harassing conduct need not be motivated by sexual desire.

9(D) For purposes of this subdivision, on and after July 1, 2018:

10(i) Any person or entity that contracts with a janitorial employer
11as defined by subdivision (d) of Section 1421 of the Labor Code
12who lacks a current and valid registration under Part 4.2
13(commencing with Section 1420) of Division 2 of the Labor Code
14on the date the person or entity enters into or renews a contract or
15subcontract for janitorial services with the janitorial employer, is
16an “employer” as defined by paragraph (4).

17(ii) Any person or entity that contracts with a janitorial
18employer, as defined by subdivision (d) of Section 1421 of the
19Labor Code, who has a current and valid registration under Part
204.2 (commencing with Section 1420) of Division 2 of the Labor
21Code on the date the person or entity enters into or renews a
22contract or subcontract for janitorial services with the janitorial
23employer, is presumed not to be an “employer” as defined by
24paragraph (4) of the persons providing services pursuant to the
25contract or subcontract for janitorial services.

26(5) For purposes of this subdivision, “a person providing services
27pursuant to a contract” means a person who meets all of the
28following criteria:

29(A) The person has the right to control the performance of the
30contract for services and discretion as to the manner of
31performance.

32(B) The person is customarily engaged in an independently
33established business.

34(C) The person has control over the time and place the work is
35performed, supplies the tools and instruments used in the work,
36and performs work that requires a particular skill not ordinarily
37used in the course of the employer’s work.

38(k) For an employer, labor organization, employment agency,
39apprenticeship training program, or any training program leading
P10   1to employment, to fail to take all reasonable steps necessary to
2prevent discrimination and harassment from occurring.

3(l) (1) For an employer or other entity covered by this part to
4refuse to hire or employ a person or to refuse to select a person
5for a training program leading to employment or to bar or to
6discharge a person from employment or from a training program
7leading to employment, or to discriminate against a person in
8compensation or in terms, conditions, or privileges of employment
9because of a conflict between the person’s religious belief or
10observance and any employment requirement, unless the employer
11or other entity covered by this part demonstrates that it has explored
12any available reasonable alternative means of accommodating the
13religious belief or observance, including the possibilities of
14excusing the person from those duties that conflict with his or her
15religious belief or observance or permitting those duties to be
16performed at another time or by another person, but is unable to
17reasonably accommodate the religious belief or observance without
18undue hardship, as defined in subdivision (u) of Section 12926,
19on the conduct of the business of the employer or other entity
20covered by this part. Religious belief or observance, as used in
21this section, includes, but is not limited to, observance of a Sabbath
22or other religious holy day or days, reasonable time necessary for
23travel prior and subsequent to a religious observance, and religious
24dress practice and religious grooming practice as described in
25 subdivision (q) of Section 12926. This subdivision shall also apply
26to an apprenticeship training program, an unpaid internship, and
27any other program to provide unpaid experience for a person in
28the workplace or industry.

29(2) An accommodation of an individual’s religious dress practice
30or religious grooming practice is not reasonable if the
31accommodation requires segregation of the individual from other
32employees or the public.

33(3) An accommodation is not required under this subdivision
34if it would result in a violation of this part or any other law
35prohibiting discrimination or protecting civil rights, including
36subdivision (b) of Section 51 of the Civil Code and Section 11135
37of this code.

38(4) For an employer or other entity covered by this part to, in
39addition to the employee protections provided pursuant to
40subdivision (h), retaliate or otherwise discriminate against a person
P11   1for requesting accommodation under this subdivision, regardless
2of whether the request was granted.

3(m) (1) For an employer or other entity covered by this part to
4fail to make reasonable accommodation for the known physical
5or mental disability of an applicant or employee. Nothing in this
6subdivision or in paragraph (1) or (2) of subdivision (a) shall be
7construed to require an accommodation that is demonstrated by
8the employer or other covered entity to produce undue hardship,
9as defined in subdivision (u) of Section 12926, to its operation.

10(2) For an employer or other entity covered by this part to, in
11addition to the employee protections provided pursuant to
12subdivision (h), retaliate or otherwise discriminate against a person
13for requesting accommodation under this subdivision, regardless
14of whether the request was granted.

15(n) For an employer or other entity covered by this part to fail
16to engage in a timely, good faith, interactive process with the
17employee or applicant to determine effective reasonable
18accommodations, if any, in response to a request for reasonable
19accommodation by an employee or applicant with a known physical
20or mental disability or known medical condition.

21(o) For an employer or other entity covered by this part, to
22subject, directly or indirectly, any employee, applicant, or other
23person to a test for the presence of a genetic characteristic.

24(p) Nothing in this section shall be interpreted as preventing the
25ability of employers to identify members of the military or veterans
26for purposes of awarding a veteran’s preference as permitted by
27law.

28

SEC. 2.  

Section 1106 of the Labor Code is amended to read:

29

1106.  

For purposes of Sections 1102.5, 1102.6, 1102.7, 1102.8,
301104, and 1105, “employee” includes, but is not limited to, any
31individual employed by the state or any subdivision thereof, any
32county, city, city and county, including any charter city or county,
33and any school district, community college district, municipal or
34public corporation, political subdivision, or the University of
35California, or any covered worker as defined in subdivision (a) of
36Section 1421.

37

SEC. 3.  

Part 4.2 (commencing with Section 1420) is added to
38Division 2 of the Labor Code, to read:

 

P12   1PART 4.2.  Property Service Workers Protection
2Act

3

3 

4Chapter  1. General
5

 

6

1420.  

(a) The Legislature finds and declares that in the
7janitorial industry in this state:

8(1) Workers are widely victimized by wage theft, workplace
9sexual violence and harassment, failure to provide workers’
10compensation insurance, and other illegal practices perpetrated by
11unscrupulous contractors that fail to comply with existing labor
12standards laws.

13(2) Workers in janitorial occupations often work alone at night,
14making them vulnerable to sexual violence and harassment while
15on the job, a condition that is exacerbated by low pay, low job
16mobility, and inadequate training. Adopting standards to protect
17workers from sexual violence and sexual harassment must be an
18obligation of all involved in the janitorial industry.

19(3) Contractors, including subcontractors and franchisors, are
20often undercapitalized, change names, and abuse their corporate
21identity; making it difficult for victimized workers to secure
22meaningful legal relief.

23(4) While some contractors comply with labor standards laws
24and invest in training and retaining a more skilled workforce, these
25contractors are undercut by unscrupulous competitors in a continual
26race to the bottom.

27(5) It is in the public interest that contractors compete primarily
28on the basis of quality, efficiency, and innovation, and not through
29a race to the bottom that perpetuates substandard working
30conditions and lack of compliance with labor standards laws.

31(6) Despite the state’s many efforts over the years to bring
32underground economy practices in the janitorial industry under
33control, these practices persist.

34(7) Absent additional regulation of labor standards by the state
35to prevent the undercutting of law-abiding contractors, the current
36situation is unlikely to change.

37(b) It is the intent of the Legislature in enacting this part to:

38(1) Direct janitorial contractors to post a notice regarding
39workplace sexual violence and harassment and to establish a system
40to require all janitorial workers and supervisors to at least annually
P13   1receive comprehensive in-person training regarding workplace
2sexual violence and harassment tailored to the janitorial industry.
3It is also the intent of the Legislature, in enacting this part, to direct
4the Labor Commissioner, in consultation with labor organizations
5that represent janitors and with nonprofits that advocate for policies
6and standards to prevent workplace sexual violence and harassment
7in the janitorial industry, to develop the notice and the worker and
8supervisor education materials for these trainings in the languages
9and literacy levels that are appropriate for the janitorial workforce,
10and to establish standards for the trainers who are to deliver these
11trainings.

12(2) Direct the Occupational Safety and Health Standards Board
13to require janitorial industry contractors to include the training,
14indicated in paragraph (1) above, as part of their injury and illness
15prevention plans.

16(3) Establish a system of janitorial contractor registration to
17encourage labor standards compliance and to establish prompt and
18effective sanctions for violating this act.

19

1421.  

This part shall be known, and may be cited, as the
20Property Service Workers Protection Act.

21

1422.  

For purposes of this part:

22(a) (1) “Covered worker” means a janitor, including any
23individual predominantly working, whether as an employee,
24independent contractor, or a franchisee, as a janitor, as that term
25is defined in the federal Service Contract Act Directory of
26Occupations.

27(2) “Covered workers” does not include any individual whose
28work duties are predominantly final cleanup of debris, grounds,
29and buildings near the completion of a construction, alteration,
30demolition, installation, or repair work project, including, but not
31limited to, street cleaners.

32(b) “Current and valid registration” means an active registration
33pursuant to Chapter 3 (commencing with Section 1430) that is not
34void or suspended.

begin delete

35(c) “Director” means the Director of the Department of Industrial
36Relations.

end delete
begin insert

37
(c) “Delinquent liability” means any unsatisfied final judgment,
38order, assessment, or determination by a court or by any federal,
39state, or local administrative agency, including a confirmed
40arbitration award, or accord, for unpaid compensation or backpay,
P14   1for having committed sexual harassment of a covered worker or
2for having violated any provision of this part, and for related
3damages, interest, fines, and penalties. An employer shall not have
4any delinquent liability for a final judgment, order, assessment,
5determination, including a confirmed arbitration award, or accord
6that is under appeal if the employer has secured the payment of
7any amount eventually found due through a bond or other
8appropriate means.

end insert

34 9(d) “Department” means the Department of Industrial Relations.

begin insert

10
(e) “Director” means the Director of Industrial Relations.

end insert
begin delete

36 11(e)

end delete

12begin insert(f)end insert (1) “Employer” means any person or entity that employs at
13least one employee and one or more covered workers and that
14enters into contracts, subcontracts, or franchise arrangements to
15provide janitorial services. The term “employer” includes the term
16“covered successor employer.”

17(2) “Covered successor employer” means an employer who
18meets one or more of the following criteria:

19(A) Uses substantially the same facilities, equipment,
20supervisors, and workforce to offer substantially the same services
21to substantially the same clients as a predecessor employer. An
22employer who has operated with a current and valid registration
23for at least the preceding three years shall not be considered a
24covered successor employer for using substantially the same
25facilities, equipment, supervisors, and workforce to substantially
26the same clients, if all of the following apply:

27(i) The individuals in the workforce were not referred or supplied
28for employment by the predecessor employer to the successor
29employer.

30(ii) The successor employer has not had any interest in, or
31connection with, the operation, ownership, management, or control
32of the business of the predecessor employer within the preceding
33three years.

34(B) Shares in the ownership, management, control of the
35workforce, or interrelations of business operations with the
36predecessor employer.

37(C) Is an immediate family member of any owner, partner,
38officer, licensee, or director of the predecessor employer or of any
39person who had a financial interest in the predecessor employer.
40“Immediate family member” means a spouse, parent, sibling, son,
P15   1daughter, uncle, aunt, niece, nephew, grandparent, grandson,
2granddaughter, mother-in-law, father-in-law, brother-in-law,
3sister-in-law, or cousin.

begin delete

30 4(f)

end delete

5begin insert(g)end insert “Labor Commissioner” means the Labor Commissioner of
6the Division of Labor Standards Enforcement of the Department.

begin delete

33 7(g)

end delete

8begin insert(h)end insert “State Janitorial Contractor Registration Fund” or “fund”
9means the State Janitorial Contractor Registration Fund established
10in Chapter 5 (commencing with Section 1445).

begin delete

37 11(h)

end delete

12begin insert(i)end insert “Standards board” means the Occupational Safety and Health
13Standards Board.

begin delete

P16 1 14(i)

end delete

15begin insert(j)end insert “Supervisor” has the same meaning as in subdivision (t) of
16Section 12926 of the Government Code.

17 

18Chapter  2. Protections Against Workplace Sexual
19Violence and Harassment
20

 

21

1425.  

(a) The Labor Commissioner, no later than January 1,
222018, shall do all of the following in consultation and partnership
23with an advisory group that meets the requirements of Section
241427:

25(1) Develop worker and supervisor agendas, handouts, trainer
26guides, and other materials for a four-hour training regarding sexual
27violence and sexual harassment that are appropriate for the
28janitorial industry and the languages and literacy levels of covered
29workers.

30(A) Training materials shall include information related to:
31definitions of workplace sexual violence and sexual harassment;
32employers’ legal obligations to prevent workplace sexual violence
33and sexual harassment; potential legal and disciplinary
34consequences for employers and perpetrators of workplace sexual
35violence and sexual harassment; community, mental health, and
36legal resources locally available for those who have experienced
37workplace sexual violence and sexual harassment; legal protections
38available to immigrant workers subjected to workplace sexual
39violence and sexual harassment, including, but not limited to, the
40federal U nonimmigrant status known as U visa; prevention,
P16   1protection, and reporting strategies for workplace sexual violence
2and sexual harassment; information on filing administrative
3complaints with the appropriate state and federal agencies;
4antiretaliation and other legal protections for those who have
5experienced workplace sexual violence and sexual harassment;
6information regarding the Injury and Illness Protection Program
7of the Division of Occupational Safety and Health, and on the
8employer’s workplace sexual violence and sexual harassment
9prevention plan, as described in Section 1426, and other topics as
10the Labor Commissioner deems necessary for janitorial workers
11and supervisors.

12(B) The Labor Commissioner shall provide these materials in
13all languages that are the language spoken at home of at least 2,000
14janitors (ACS Occupation Code 4220) who reside in this state, as
15determined by the most recent American Community Survey of
16the United States Census Bureau.

17(C) Beginning July 1, 2019, the Labor Commissioner shall
18update these materials on or before July 1 of each year and make
19them available to employers, covered workers, and the public
20through, among other means, posting on its Internet Web site.

21(2) Establish minimum qualification standards for trainers who
22may deliver training,begin delete includingend deletebegin insert including,end insert but not limited to, a
23minimum ofbegin delete fiveend deletebegin insert threeend insert years of experience conducting adult
24education withbegin delete the demographics of the janitorial workforce. The
25collective bargaining agent that represents the employer’s covered
26workers or the designee of the collective bargaining agent may
27deliver trainings.end delete
begin insert non-English speakers with a reading ability at
28or below the fifth grade level in the language spoken at home. If
29the minimum qualification standards are met, nothing in this
30section shall be interpreted to preclude the collective bargaining
31agent that represents the employer’s covered workers or the
32designee of the collective bargaining agent from delivering the
33trainings.end insert

34(3) Develop the size, form, and content of a notice to be posted
35by employers consistent with the requirements of paragraph (3)
36of subdivision (b), below, that shall inform covered workers of
37their rights under the anti-sexual harassment laws, contain
38examples of illegal employer conduct, and provide the telephone
39numbers for nonprofit, nongovernmental organizations able to
40provide help, referral services, training, and general information
P17   1to those who have experienced workplace sexual violence and
2harassment or labor trafficking. The Labor Commissioner shall
3develop an approved notice that has been translated into the
4languages specified in subparagraph (B) of paragraph (1) of
5subdivision (a) and shall make the notice available on its Internet
6Web site.

7(b) On and after July 1, 2018, all employers shall:

8(1) Have a system to require all covered workers and supervisors
9to, at least annually, receivebegin delete comprehensive, accurate and
10appropriateend delete
in-person training lasting at least four hours regarding
11workplace sexual violence and sexual harassment that provides
12an opportunity for interactive questions and answers. These
13mandatory trainings shall use the worker and supervisor materials
14in paragraph (1) of subdivision (a) and shall be delivered in English
15and in all primary languages spoken at home by at least 25 percent
16of the employer’s covered workers in the State of California.
17Employers shall provide these in-person trainings at no cost to all
18covered workers and to all supervisors of covered workers on at
19least an annual basis and within 60 days of hire. Employers shall
20pay employees and supervisors at theirbegin delete regularend deletebegin insert hourlyend insert rate of pay
21for participating in these trainings or, if the training causes an
22employee or supervisor to work overtime hours, at his or her
23overtime rate of pay.

24(2) Maintain accurate records for a minimum of three years
25documenting the delivery of training by qualified trainers which
26includes: certificates of completion for participants, sign-in sheets
27with the participants’ and qualified trainer’s signatures; a listing
28of the names, addresses, and telephone numbers of the participants
29and of the qualified trainers, and a copy of the materials provided
30and used in the training.

31(3) Post and display prominently a notice that complies with
32the requirements of paragraph (3) of subdivision (a) in all languages
33that have been made available by the Labor Commissioner. The
34notice shall be posted in a conspicuous place where the notice may
35be read by covered workers during work hours, and in all places
36where notices to covered workers are posted both physically and
37electronically.

38(c) The Labor Commissioner shall have broad authority to
39enforce and implement the provisions of this chapter and may
P18   1establish through regulation any procedures necessary to carry out
2such provisions.

3

1426.  

(a) The standards board, by no later than January 1,
42018, shall adopt standards developed by the Division of
5Occupational Safety and Health, in consultation and partnership
6with an advisory group that meets the requirements of Section
71427, that require an employer to adopt a workplace sexual
8violence and sexual harassment prevention plan, as a part of its
9injury and illness prevention plan, to protect covered workers from
10workplace sexual violence and harassment.

11(b) The standards adopted pursuant to subdivision (a) shall
12include all of the following:

13(1) A requirement that the workplace sexual violence and sexual
14harassment prevention plan shall be in effect at all times and in
15written form for all employers.

16(2) A requirement that the workplace sexual violence and sexual
17harassment prevention plan include specific means for janitors
18who work during the nighttime or early morning hours to work in
19pairs, or to have an equivalent form of protection.

20(3) A requirement that the workplace sexual violence and sexual
21harassment prevention plan include specific protections for covered
22workers against workplace sexual violence and sexual harassment
23from clients, coworkers, supervisors, building tenants, visitors,
24and intruders.

25(4) A system to, at least annually, assess and improve upon
26factors that may contribute to, or help prevent workplace sexual
27violence and sexual harassment.

28(5) A requirement that all workplace sexual violence and sexual
29harassment prevention plans, and the annual assessment of those
30plans, be developed in consultation and partnership with covered
31workers, including their recognized collective bargaining agents,
32if any.

33(6) A requirement that all workplace sexual violence and sexual
34harassment prevention plans include training, notice, and
35recordkeeping requirements consistent with the requirements of
36Section 1425.

37(7) A requirement that employers maintain records of complaints
38and incidents of workplace sexual violence and sexual harassment
39for a minimum period of three years, including the date, number
40of employees involved, nature of the claim or incident, worksite
P19   1location, investigation steps, and results of the employer’s
2investigation.

begin delete

3(8) A requirement that employers screen supervisors for
4convictions of any of the acts listed in subdivision (c) of Section
5290 of the Penal Code, for being listed on the registered sex
6offender database under the Sex Offender Registration Act (Chapter
75.5 (commencing with Section 290) of Title 9 of Part 1 of the Penal
8Code), and for any civil judgments for having committed sexual
9harassment.

end delete
begin delete

29 10(9)

end delete

11begin insert(8)end insert A requirement that employers notify coveredbegin delete workers,end delete
12begin insert workersend insert who have complained of an incident of workplace sexual
13violence orbegin delete harassment,end deletebegin insert harassmentend insert of how to report such an
14incident to an appropriate government agency or to law
15enforcement as well as of any resources available to covered
16workers for coping with such an incident, including, but not limited
17to, employee assistance programs.

18(c) This section does not limit the authority of the standards
19board to adopt standards to protect employees from workplace
20violence or harassment. Nothing in this section shall be interpreted
21to preclude the standards board from adopting standards that
22require other employers to adopt plans to protect employees from
23workplace violence or harassment. Nothing in this section shall
24be interpreted to preclude the standards board from adopting
25standards that require an employer subject to this section, or any
26other employer, to adopt a workplace violence or harassment
27prevention plan that includes elements or requirements additional
28to, or broader in scope than, those described in this section.

29

1427.  

The Labor Commissioner and the Division of
30Occupational Safety and Health shall each appoint an advisory
31group of stakeholders to assist them in carrying out their respective
32responsibilities under this chapter. The advisory group shall include
33representatives from at least one nonprofit organization that
34advocates for policies and standards to prevent workplace sexual
35violence and harassment in the janitorial industry, and from a labor
36organization that represents covered workers. The term “nonprofit
37organization” means a nonprofit entity exempt from taxation
38pursuant to Section 501(c)(3) of the Internal Revenue Code (26
39U.S.C. Sec. 501(c)(3)) or pursuant to Section 501(c)(5) of the
P20   1Internal Revenue Code (26 U.S.C. Sec. 501(c)(5)), or a nonprofit
2 corporation.

3 

4Chapter  3. Registration of Janitorial Contractors
5

 

6

1430.  

(a) The Labor Commissioner shall have broad authority
7to interpret, enforce, and implement this part. This authority
8includes, but is not limited to:

9(1) Maintaining the janitorial contractor registry, list, and
10Internet Web site.

11(2) Conducting random and nonrandom audits or investigations
12of complaints, or both audits and investigations.

13(3) Issuing, renewing, denying renewal of,begin delete suspendingend delete
14begin insert suspending,end insert and voiding an employer’s registration and certificate
15of registration.

16(4) Issuing civil fines and stop orders.

17(5) Other powers as determined by the Labor Commissioner
18that are necessary to interpret, implement, and enforcebegin insert this chapter
19andend insert
Chapter 4 (commencing with Section 1440).

20(b) The Labor Commissioner may establish through the adoption
21of regulations any procedures it determines to be necessary to carry
22out the provisions of this chapter and of Chapter 4 (commencing
23with Section 1440).

24

1431.  

(a) On and after January 1, 2018, the Labor
25Commissioner shall maintain anbegin delete on-lineend deletebegin insert onlineend insert registration system
26of employers integrated with the Labor Commissioner’s system
27for managing investigations.

28(b) On and after July 1, 2018, no employer may conduct any
29 janitorial business without a current and valid registration under
30this chapter and all employers shall be registered with the Labor
31Commissioner pursuant to this chapter.

32(c) On and after January 1, 2018, to qualify for a certificate of
33registration or for a renewal of a certificate of registration under
34this chapter, an employer shall, in a manner prescribed by the
35Labor Commissioner, do all of the following:

36(1) Register online with the Labor Commissioner and pay an
37initial nonrefundable application fee ofbegin delete one thousand dollars
38($1,000)end delete
begin insert five hundred dollars ($500)end insert and an annual renewal fee
39ofbegin delete one thousand dollars ($1,000)end deletebegin insert five hundred dollars ($500)end insert on
40or before July 1 of each year thereafter. The director may adjust
P21   1the initial registration and renewal fees no more than annually to
2support the costs specified in Section 1450.

3(2) Execute a written application, subscribed and sworn to by
4the employer under penalty of perjury under the laws of this state
5that contains all of the following:

6(A) The name of the employer and, if applicable, its fictitious
7business name.

8(B) The form of the employer and, if a corporation, all of the
9following:

10(i) The date of incorporation.

11(ii) The state in which incorporated.

12(C) If a foreign corporation, the date the articles of incorporation
13were filed with the California Secretary of State.

14(D) Whether the corporation is in good standing with the
15California Secretary of State.

16(E) The federal employer identification number (FEIN) and the
17state employer identification number (SEIN) of the employer.

18(F) The employer’s business address, telephone number, fax
19number, and email address.

20(G) The names, residential addresses, business addresses,
21telephone numbers, email addresses andbegin delete Social Securityend deletebegin insert social
22securityend insert
numbers, federal employer identification numberbegin delete (FEIN)end delete
23begin insert (FEIN),end insert or the state employer identification number (SEIN) of the
24following persons:

25(i) All corporate officers, if the employer is a corporation.

26(ii) All persons exercising management responsibility in the
27employer’s office, regardless of the form of the business entity.

28(iii) The franchisor, if the employer is a franchise.

29(iv) All shareholders holding at least 10 percent of the
30outstanding voting shares of the employer, if the employer has
31shareholders, and the actual percent owned by each of those
32
begin delete shareholders.end deletebegin insert shareholders, except that in the case of a publicly
33traded corporation, a listing of principal officers shall suffice.end insert

34(v) All persons who have a financial interest of 10 percent or
35more in the employer’s business, regardless of the form of business
36entity, and the actual percentage owned by each of thosebegin delete persons.end delete
37
begin insert persons, except that in the case of a publicend insertbegin insertly traded corporation,
38a listing of principal officers shall suffice.end insert

39(H) The total number of covered workers who are employees
40of the employer.

P22   1(I) The total number of covered workers who are independent
2contractors of the employer.

3(J) The total number of covered workers who are franchisees
4of the employer.

5(K) The employer’s total annual payroll-related expenses over
6the last 12 months.

7(L) Whether the employer uses a professional employer
8organization or leasing employer.

begin delete

9(M) Whether the employer has instituted an alternative work
10week pursuant to Section 511.

end delete
begin delete

11(N)

end delete

12begin insert(M)end insert Name, address, and telephone number of any recognized
13collective bargaining agent representing any of the employer’s
14covered workers, and whether that collective bargaining agent
15represents all of the employer’s covered workers in California.

begin delete

16(O)

end delete

17begin insert(N)end insert Whether the application is for a new or renewal registration
18and, if the application is for a renewal, the prior registration
19number.

begin delete

20(P)

end delete

21begin insert(O)end insert Whether the employer is also a covered successor employer,
22 and, if so, the information in subparagraphs (A) to (C), inclusive,
23(E), and (F) for the predecessor employer.

begin delete

24(Q)

end delete

25begin insert(P)end insert Certification that the information submitted to the Labor
26Commissioner under this paragraph and paragraph (3) is complete.

begin delete

27(R)

end delete

28begin insert(Q)end insert A written pledge under penalty of perjury under the laws
29of the State of California that the employer shall:

30(i) Comply with all applicable federal, state, and local laws and
31regulations during the upcoming year, including, but not limited
32to, laws regarding health and safety, labor and employment, wage
33 and hour, and licensing and registration laws that affect covered
34workers, including, but not limited to, Sections 96.8, 98, 98.6, and
3598.7, Section, 238 to 238.5, inclusive, Sections 244, 558.1, 1019,
36and 1024.6, Section 1060 to Section 1065, inclusive, and Sections
371102.5 and 2810 of this code, Section 690.020 to Section 690.050,
38inclusive, of the Code of Civil Procedure, and Section 494.6 of
39the Business and Profession Code; and timely notify the Labor
40Commissioner as required by subdivision (d).

P23   1(ii) Timely notify the Labor Commissioner as required by
2subdivision (d).

begin delete

3(S)

end delete

4begin insert(R)end insert Such other information as the Labor Commissioner requires
5for the administration and enforcement of thisbegin delete chapter.end deletebegin insert chapter
6and Chapter 4 (commencing with Section 1440).end insert

begin delete

7(T)

end delete

8begin insert(S)end insert A post office box and mail drop are not acceptable responses
9to subparagraphs (F), (G), and (I) above.

10(3) Execute a writtenbegin delete reportend deletebegin insert statementend insert that provides evidence
11orbegin delete disclosuresend deletebegin insert disclosureend insert under penalty of perjury under the laws
12of the State ofbegin delete California, as are necessaryend deletebegin insert Californiaend insert to establish
13all of the following:

14(A) The employer has workers’ compensation coverage that
15complies with Division 4 (commencing with Section 3200) and
16includes sufficient coverage for every covered worker. Coverage
17may be evidenced by a current and valid certificate of workers’
18compensation insurance or certification of self-insurance required
19under Section 7125 of the Business and Professions Code.

20(B) The employer begin delete does not have any delinquent liability to a
21covered worker or the state for any assessment of unpaid
22compensation or backpay, for having committed sexual harassment
23of a covered worker, or for having violated any provision of this
24part, or, in all cases, for related damages, interest, fines, or penalties
25pursuant to any final judgment, order, or determination by a court
26or any federal, state, or local administrative agency, including a
27confirmed arbitration award or a settlement agreement. If the
28employer is a covered successor employer, then the employer shall
29establish that both the covered successor employer and the
30predecessor employer do not have such delinquent liability.
31However, for purposes of this subparagraph, the employer shall
32not be disqualified for any judgment, order, or determination that
33 is under appeal or for any settlement agreement that is being
34adjudicated, the employer has secured the payment of any amount
35eventually found due through a bond or other appropriate means.end delete

36
begin insert has satisfied the requirement of either of the following:end insert

begin insert

37
(i) If the employer does not have any delinquent liability to a
38covered worker or the state, then the employer shall execute a
39written statement in accordance with this paragraph that the
40employer is not liable. If the employer is a covered successor
P24   1employer, then the employer shall verify that both the covered
2successor employer and the predecessor employer do not have
3delinquent liability.

end insert
begin insert

4
(ii) If the employer does have delinquent liability, as described
5in clause (i), that the employer has on file with the Labor
6Commissioner a bond sufficient to guarantee payment for any
7delinquent liability applicable under clause (i) or, in lieu thereof,
8a notarized copy of an accord with the covered worker or the state
9to whom the employer owes the delinquent liability. If the accord
10provides for the delinquent liability to be paid for in installments,
11then the employer must provide evidence or disclosures under
12penalty of perjury under the laws of this state that it is current on
13any installment payments under the accord.

end insert

14(C) Any administrative merits determinations, arbitral awards
15or decisions, civil judgments, or criminal judgments rendered
16against the employer within the preceding five-year period for
17assessments for unpaid compensation or backpay, for having
18committed sexual harassment of a covered worker, or for having
19violated any provision of this part, or, in all cases, for related
20damages, interests, fines, and penalties. A covered successor
21employer shall provide this information both for itself and for its
22predecessor employer. At minimum, the employer shall provide:

23(i) The law violated.

24(ii) The case number, inspection number, charge number, docket
25number, or other unique identification number.

26(iii) The date rendered.

27(iv) The name of the court, arbitrator, agency, board, or
28commission rendering the determination or decision.

29(v) A copy of the administrative merits determination, arbitral
30award or decision, or civil or criminal judgment document.

31(D) On and after July 1, 2018, the employer has a sexual
32violence and sexual harassment prevention plan that meets the
33requirements of subdivision (b) of Section 1426.

begin delete

34(E) Within the last 12 months, the employer has screened all
35supervisors for convictions of any of the acts listed in subdivision
36(c) of Section 29 of the Penal Code, for being listed on the
37registered sex offender database under the Sex Offender
38Registration Act (Chapter 5.5 (commencing with Section 290) of
39Title 9 of Part 1 of the Penal Code), and for any civil judgments
40for having committed sexual harassment.

end delete
begin delete

13 P25   1(F)

end delete

2begin insert(E)end insert On and after July 1, 2018, the employer is in compliance
3with all the requirements of Section 1425.

begin delete

16 4(G)

end delete

5begin insert(F)end insert Other information as the Labor Commissioner requires for
6the administration and enforcement of this chapter and of Chapter
74 (commencing with Section 1440).

8(d) After an employer is registered or has renewed its
9registration, the employer shall notify the Labor Commissioner in
10writing within 90 days of:

11(1) Any delinquent liability the employer owes to a covered
12worker or thebegin delete state for any assessment of unpaid compensation or
13backpay, for having committed sexual harassment of a covered
14worker, or for having violated any provision of this part, or in all
15cases, for related damages, interest, fines, or penalties pursuant to
16any final judgment, order, determination by a court or any federal,
17state, or local administrative agency, including a confirmed
18arbitration award, or settlement agreement.end delete
begin insert state.end insert

19(2) Any updated responses to the registration or renewal
20application orbegin delete reportend deletebegin insert statementend insert if any change occurs that would
21change any response in the completed application orbegin delete reportend delete
22begin insert statementend insert the employer submitted under paragraphs (2) and (3) of
23subdivision (c).

24(e) At least 30 days prior to the expiration of each employer’s
25registration, the Labor Commissioner shall mail or email a renewal
26notice to the last known mailing or email address of the employer.
27However, the omission of the Labor Commissioner to provide the
28renewal notice in accordance with this subdivision shall not excuse
29an employer from making timely application for renewal of
30registration, shall not be a defense in any action or proceeding
31involving failure to renew registration, and shall not subject the
32Labor Commissioner to any legal liability.

33(f) Fees received pursuant to this section shall be deposited in
34the State Janitorial Contractor Registration Fund established in
35Chapter 5 (commencing with Section 1450) and shall be used only
36for the purposes specified in that chapter.

37

1432.  

On and after July 1, 2018, the employer shall:

38(a) Maintain records of the sign-in sheets and materials
39consistent with paragraph (2) of subdivision (b) of Section 1425.
P26   1These records shall be available for inspection by the Labor
2Commissioner.

3(b) Post and display prominently in a conspicuous place where
4it may be read by covered workers during work hours, and in all
5places where notices to covered workers are posted both physically
6and electronically:

7(1) By July 1, 2018, the notice in paragraph (3) of subdivision
8(b) of Section 1425.

9(2) By July 1, 2018, a copy of the employer’s current certificate
10of registration.

11

1433.  

(a) The Labor Commissioner shall not grant registration
12or renewal of registration to any employer who:

13(1) Lacks workers’ compensation coverage that meets the
14requirements of subparagraph (A) of paragraph (3) of subdivision
15(b) of Section 1431.

16(2) Has any delinquent liability to a worker or to the begin delete state as
17described in paragraph (1) of subdivision (d) of Section 1431.end delete

18
begin insert state.end insert

19(3) Has not submitted the complete fees, application,
20information, disclosures under penalty of perjury, and evidence
21as required by subdivisions (b) to (d), inclusive, of Section 1431.

22(4) Who has willfully made false statements in its application
23orbegin delete reportend deletebegin insert statementend insert to qualify for a certificate of registration or for
24a renewal of a certificate of registration under Section 1431.

25(b) The Labor Commissioner shall suspend a registration if it
26is found that:

27(1) An employer willfully made false statements in its
28application or itsbegin delete reportend deletebegin insert statementend insert submitted for a certificate of
29registration or for a renewal of a certificate of registration under
30Section 1431.

31(2) The employer failed to notify the Labor Commissioner in
32writing within 90 days of any delinquent liability as required by
33paragraph (1) of subdivision (d) of Section 1431. If the employer
34failed to notify the Labor Commissioner within 90 days, the
35employer’s registration shall be automatically suspended on the
36date that the Labor Commissioner is informed, or is made aware
37of the delinquent liability. The suspension shall not be removed
38until proof of satisfaction of the delinquent liability, or in lieu
39thereof, a notarized copy of an accord is submitted to the Labor
40Commissioner. If the employer notifies the Labor Commissioner
P27   1in writing within 90 days of the imposition of any delinquent
2 liability, the employer shall, as a condition to the continual
3maintenance of the registration, have on file with the Labor
4Commissioner a bond sufficient to guarantee payment for any
5delinquent liability applicable under this paragraph.

6(A) By operation of law, failure to maintain the bond or failure
7to abide by the accord shall result in the automatic suspension of
8any registration to which this paragraph applies.begin insert If the accord
9provides for the delinquent liability to be paid in instalments, and
10an installment payment is not made, then this shall be deemed to
11be failure to abide by the accord.end insert

12(B) A registration that is suspended for failure to comply with
13the provisions of this subdivision can only be reinstated when
14proof of satisfaction of all debts is made, or when a notarized copy
15of an accord has been filed as set forth in this subdivision.

16(C) The Labor Commissioner shall take the actions required by
17this paragraph upon notification by any party having knowledge
18of the outstanding judgment upon a showing of proof of the
19judgment.

20(3) Lacks workers’ compensation coverage that meets the
21requirements of subparagraph (A) of paragraph (3) of subdivision
22(c) of Section 1431.

23(c) The Labor Commissioner may suspend a registration if:

24(1) The employer has violated or failed to comply with the
25requirements of subdivision (b) of Section 1425, Section 1426, or
26begin insert the employer and its predecessor employer, if any, have a record
27of more than one violation ofend insert
Section 1432.

28(2) The employer has made any misrepresentations or false
29statements in his or her registration or registration renewal
30application, or in response to the Labor Commissioner’s request
31for information.

32(3) The employer has failed to respond to the Labor
33Commissioner’s request for information within 30 days of such a
34request.

35(4) The employer has failed to notify or provide the Labor
36Commissioner with updated responses within 90 days as required
37by paragraph (2) of subdivision (d) of Section 1431.

38(d) begin insertBefore suspending any registration, the Labor Commissioner
39shall hold proceedings in accordance with Chapter 4.5
40(commencing with Section 11400) or Chapter 5 (commencing with
P28   1Section 11500) of Part 1 of Division 3 of Title 2 of the Government
2Code as applicable, and the commissioner shall have all of the
3powers granted therein. end insert
When determining whether to suspend or
4reissue a registration, and when determining the duration of a
5suspension, the Labor Commissioner shall take into consideration
6evidence and other information submitted by the employer, covered
7workers, the employer’s collective bargaining representative, if
8any, and a labor-management cooperation committee established
9pursuant to the federal Labor Management Cooperation Act of
101978 (Section 175a of Title 29 of the United States Code) whose
11members include a collective bargaining agent that represents
12covered workers.begin delete The determination by the Labor Commissioner
13shall be reviewable only for abuse of discretion.end delete

14(e) The Labor Commissioner may reissue a registrationbegin delete after
15suspension only under the following circumstances:end delete
begin insert upon
16application in the manner described by the Labor Commissioner.end insert

begin delete

17(1) To an individual upon application in a manner prescribed
18by the Labor Commissioner.

19(2) To a partnership upon application in a manner prescribed
20by the Labor Commissioner if there is no change in the partners
21or in the partnership structure.

22(3) To a corporation upon application in a manner prescribed
23by the Labor Commissioner if there is no change in the status of
24the corporation as registered with the Secretary of State.

25(4) To a limited liability company upon application in a manner
26prescribed by the Labor Commissioner if there is no change in the
27status of the company as registered with the Secretary of State.

end delete
28

1434.  

(a) An employer’s registration is void when:

29(1) The employer ceases conducting any janitorial business.

30(2) The employer changes its form of legal entity.

31(3) The employer transfers its registration.

32(4) The employer’s registration has expired and no renewal has
33been issued.

34(5) The employer fails to return the renewal application, fees,
35orbegin delete reportend deletebegin insert statementend insert under subdivision (c) or Section 1431 that was
36rejected by the Labor Commissioner for insufficiency or
37incompleteness within 90 days from the date of original notice or
38rejection.

39(b) The void date on an application may be extended up to 90
40days upon documented evidence by the employer that the failure
P29   1to complete the application process was due to a medical
2emergency or other circumstance beyond the control of the
3employer.

4(c) A registration voided pursuant to this section shall remain
5in the possession of the Labor Commissioner for the period as he
6or she deems necessary and shall not be returned to the employer.
7Any reapplication for a registration shall be accompanied by the
8fee fixed by this chapter.

9

1435.  

(a) On and after July 1, 2018, on its Internet Web site,
10the Labor Commissioner shall maintain a regularly updated,
11searchable online database of all registered employers. The
12database will have the capability to search all data, at minimum,
13for the past 10 years. The database shall include all the following
14information:

15(1) The name, address, telephone number, and registration
16number of the employer.

17(2) If the employer is a successor employer, the registration
18number of any predecessor employers.

19(3) The business addresses, telephone numbers, and email
20addresses of the persons that the employer submitted under
21subparagraph (G) of paragraph (2) of subdivision (c) of Section
221431, and, if the employer’s application listed anyone in clauses
23(iv) and (v), the percent financial interest owned by that person or
24shareholder.

25(4) The current status and effective dates of the employer’s
26registration.

27(5) The identity of the employer’s recognized collective
28bargaining agent, if any, and whether that collective bargaining
29agent represents all of the employer’s covered workers in
30California.

31(6) A listing of any past denials, suspensions, or voidances of
32the employer’s registration, including the effective dates of those
33past denials, suspensions, or voidances as well as the basis for
34them

35(7) A listing of any civil fines or stop orders issued against the
36employer under this part, including the dates of those fines or stop
37orders, and the basis for them.

38(8) Other information as deemed necessary by the Labor
39Commissioner.

P30   1(b) On and after July 1, 2019, on the department’s Internet Web
2site, the Labor Commissioner shall maintain a searchable online
3database regarding its compliance and enforcement activities. The
4Labor Commissioner shall update this information on or before
5July 1 of every year. The database shall have the capability to
6search all data, at minimum, for the past 10 years and shall include
7all the following information:

8(1) The total number of employers with current and valid
9registration that meets the requirements under Chapter 3
10(commencing with Section 1430).

11(2) The total number of employers whose registration or renewal
12of registration was denied, suspended, or voided, within the last
1312 months, categorized by the basis of that denial, suspension, or
14voidance, and, if applicable, the duration of the suspension.

15(3) The total monetary amount of fines, the total number of
16fines, and the total number of employers that the Labor
17Commissioner has cited under Section 1441 within the last 12
18months, categorized by the basis of those fines.

19(4) The total number of employers who have been issued stop
20orders under this part over the last 12 months, categorized by the
21basis of those stop orders.

22(5) The total number of audits initiated and completed by the
23Labor Commissioner under this part, within the last 12 months.

24(6) The total number of complaints investigated by the Labor
25Commissioner under Section 1444, within the last 12 months.

26(7) Other information as deemed necessary by the Labor
27Commissioner.

28 

29Chapter  4. Enforcement
30

 

31

1440.  

The Labor Commissioner shall establish a Property
32Services Compliance Unit to enforce this part, including, but not
33limited to maintaining and enforcing the janitorial contractor
34registry, list, and Internet Web site, conducting audits, and
35investigating complaints.

36

1441.  

(a) On and after July 1, 2018, an employer whobegin delete fails to
37register or to renew its registration or that has a void or suspended
38registration under this part is subject to a civil fine of two hundred
39dollars ($200) for each calendar day, or portion thereof, that the
40employer conducts any janitorial business without registering or
P31   1renewing its registration or with a void or suspended registration.end delete

2
begin insert lacks a current and valid registration under this part is subject to
3a civil fine of two thousand five hundred dollars ($2,500) if the
4employer conducts any janitorial business without a current and
5valid registration under this part.end insert

6(b) An employer who violates any of the other requirements of
7this chapter or of Chapter 3 (commencing with Section 1430) is
8subject to a civil fine of begin delete not more than two hundred dollars ($200)
9for each calendar day, or portion thereof, that the employer is in
10violation of either chapter, with the exception of the posting and
11recordkeeping requirements of Section 1432, in which case the
12employer shall be subject to civil fines of up to seven thousand
13dollars ($7,000) per violation.end delete
begin insert two thousand five hundred dollars
14($2,500).end insert

begin insert

15
(c) Any employer that has been previously assessed pursuant
16to this section shall be subject to an additional penalty of one
17hundred dollars ($100) for each calendar day that the employer
18conducts business in violation of this chapter or of Chapter 3
19(commencing with Section 1430), however, this amount shall not
20exceed one hundred thousand dollars ($100,000).

end insert
begin delete

21(c) The determination by the Labor Commissioner as to the
22amount of the fines shall be reviewable only for abuse of discretion.

end delete

23(d) These civil fines may be assessed under a citation issued by
24the Labor Commissioner and the procedures for issuing, contesting,
25and enforcing judgments shall be the same as those set forth in
26Section 1197.1.

27

1442.  

On and after July 1, 2018, if an employer is conducting
28begin insert any janitorialend insert business without abegin insert current andend insert valid registration
29under this part, the Labor Commissioner may issue and serve on
30that employer a stop order prohibiting the use of labor by that
31employer until the employer acquires a current and valid
32registration, provided that the stop order would not compromise
33or imperil public safety or the life, health, and care of vulnerable
34individuals. The stop order shall also prohibit the employer from
35continuing to provide services by conducting any janitorial business
36using the labor of another business, contractor, or subcontractor.
37The stop order shall become effective immediately upon the service
38of the order. Any worker affected by the work stoppage shall be
39paid by the employer for such time lost, not exceeding 10 days,
40pending compliance by the employer. The employer may protest
P32   1the stop order by making and filing with the Labor Commissioner
2a written request for a hearing within 20 days after service of the
3stop order. The hearing shall be held within five days from the
4date of filing the request. The Labor Commissioner shall notify
5the employer of the time and place of the hearing by mail. At the
6conclusion of the hearing, the stop order shall be immediately
7affirmed or dismissed, and within 24 hours thereafter, the Labor
8Commissioner shall issue and serve on all parties to the hearing
9by registered or certified mail a written notice of findings,
10accompanied by written findings. A writ of mandate may be taken
11from the findings to the appropriate superior court. The writ shall
12be taken within 45 days after the mailing of the notice of findings
13accompanied by written findings. The Labor Commissioner may
14file an action in superior court for injunctive and other appropriate
15relief to enforce the stop order and shall be entitled to recovery of
16costs and attorney’s fees if any relief is obtained by the Labor
17Commissioner.

18

1443.  

(a) In a manner prescribed by the Labor Commissioner,
19the Labor Commissioner may select registered and unregistered
20employers as audit subjects for the purpose of determining
21compliance with this part. Audit subjects may be selected in any
22order, and routine audits may be scheduled in a manner to best
23minimize travel expenses and use audit personnel efficiently.

24(b) The Labor Commissioner may select audit subjects using
25random and nonrandom selection methods. The final selection of
26audit subjects shall be within the discretion of the Labor
27Commissioner.

28(c) The Labor Commissioner may investigate information or
29complaints in addition to conducting an audit.

30

1444.  

The Labor Commissioner shall conduct a reasonable and
31timely investigation upon receiving a complaint regarding a
32potential violation of the requirements of this part from a covered
33worker, a collective bargaining agent that represents covered
34workers, or a labor management cooperation committee established
35pursuant to the federal Labor Management Cooperation Act of
361978 (Section 175a of Title 29 of the United States Code) whose
37members include a collective bargaining agent that represents
38covered workers.

begin delete
39

1445.  

(a) Any employer that conducts any janitorial business
40after its registration has been suspended, revoked, or denied
P33   1reissuance is guilty of an offense punishable by a fine of not less
2than ten thousand dollars ($10,000), or by imprisonment for not
3less than six months and no more than one year, or both.

4 4(b) 

end delete
5begin insert

begin insert1445.end insert  

end insert

Any employer, owner, director, officer, or managing
6agent of the employer who fails to observe a stop order issued and
7served upon him or her pursuant tobegin delete Section 1438end deletebegin insert this partend insert is guilty
8of a misdemeanor punishable by imprisonment in county jail not
9exceeding 60 days or by a fine not exceeding ten thousand dollars
10($10,000), or both. For the purposes of this section, the term
11“managing agent” has the same meaning as in subdivision (b) of
12Section 3294 of the Civil Code.

13 

14Chapter  5. State Janitorial Contractor Registration
15Fund
16

 

17

1450.  

(a) The State Janitorial Contractor Registration Fund is
18hereby created as a special fund in the State Treasury to be
19available upon appropriation of the Legislature for the purposes
20established in subdivision (b). All registration fees collected
21pursuant to Section 1431, all civil fines collected pursuant to
22Sectionbegin delete 1437,end deletebegin insert 1441,end insert and any other moneys as are designated by
23statute or order shall be deposited in the fund.

24(b) Moneys in the fund shall be used only for the following
25purposes:

26(1) The reasonable costs of administering the registration of
27janitorial contractors pursuant to Chapter 3 (commencing with
28Section 1430) and Chapter 4 (commencing with Section 1440) by
29the Labor Commissioner.

30(2) The costs and obligations associated with the administration
31and enforcement of this part by the Labor Commissioner.

32(c) The annual employer registration renewal fee specified in
33paragraph (1) of subdivision (c) of Section 1431, and any adjusted
34application renewal fee, shall be set in amounts that are sufficient
35to support the annual appropriation approved by the Legislature
36for the fund and not result in a year-end fund balance greater than
3725 percent of the appropriation. Any year-end balance in the fund
38greater than 25 percent of the appropriation shall be applied as a
39credit when determining any fee adjustments for the subsequent
40fiscal year.

P34   1(d) To provide adequate cash flow for the purposes specified
2in subdivision (b), the Director of Finance, with the concurrence
3of the Secretary of the Labor and Workforce Development Agency,
4may approve a short-term loan each fiscal year from the Labor
5and Workforce Development Fund to the State Janitorial Contractor
6Registration Fund.

7(1) The maximum amount of the annual loan allowable may be
8up to, but shall not exceed, 50 percent of the appropriation authority
9of the fund in the same year in which the loan was made.

10(2) For the purposes of this section, a “short-term loan” is a
11transfer that is made subject to both of the following conditions:

12(A) Any amount loaned is to be repaid in full during the same
13fiscal year in which the loan was made, except that repayment may
14be delayed until a date not more than 30 days after the date of
15enactment of the annual Budget Act for the subsequent fiscal year.

16(B) Loans shall be repaid whenever the funds are needed to
17meet cash expenditure needs in the loaning fund or account.

18

SEC. 4.  

No reimbursement is required by this act pursuant to
19Section 6 of Article XIII B of the California Constitution because
20the only costs that may be incurred by a local agency or school
21district will be incurred because this act creates a new crime or
22infraction, eliminates a crime or infraction, or changes the penalty
23for a crime or infraction, within the meaning of Section 17556 of
24the Government Code, or changes the definition of a crime within
25the meaning of Section 6 of Article XIII B of the California
26Constitution.



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