BILL ANALYSIS Ó
AB 1978
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Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1978 (Gonzalez) - As Amended April 13, 2016
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|Policy |Labor and Employment |Vote:|5 - 2 |
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill enacts a number of requirements related to the
janitorial industry including, sexual harassment and sexual
violence standards and training tailored to this industry, and
the creation of a contractor registration program. Specifically,
this bill:
1)Requires the Department of Industrial Relations (DIR), no
later than July 1, 2017, to do the following:
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a) Develop materials, employer requirements, and minimum
training requirements around the provision of 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, as specified.
b) Establish a toll-free hotline for the reporting of
complaints and incidents of workplace sexual harassment,
assault, and human trafficking.
c) Appoint an advisory group of stakeholders, including
representatives from a non-profit 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.
d) Issue such regulations as are necessary to carry out
this bill.
2)Requires the Occupational Safety and Health Standards Board
(Standards Board), no later than July 1, 2017, to adopt
standards 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, as specified.
3)Prohibits employers from conducting any janitorial business
without a valid registration with DIR, as specified, starting
January 1, 2018. Establishes an initial application fee of
$1,000 and an annual renewal fee of $1,000. Authorizes DIR to
adjust this fee, no more than annually, to support the
registration program.
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4)Prohibits DIR from granting registration or renewal of
registration to any employer who has a record of serious,
repeated, willful or pervasive violations of specified laws,
including any covered successor employer, as defined.
5)Requires DIR to establish a Property Services Compliance Unit
to enforce the requirements of this bill.
6)Provides DIR and the Labor Commissioner with several
enforcement and compliance mechanisms, and establishes civil
penalties for violations of provisions of this bill.
7)Requires DIR to maintain on its website an updated list of
known janitorial employers, and to select employers as audit
subjects for the purpose of determining compliance with this
bill, as specified, and shall select each employer on this
list at least once every five years.
8)Establishes specified whistleblower and anti-retaliation
protections for individuals.
9)Establishes the State Janitorial Contractor Registration Fund,
supported with registration fees and civil penalties.
Requires fees to be set in amounts sufficient to support the
annual appropriation approved by the Legislature. Authorizes
the Department of Finance to approve a short-term loan from
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the Labor and Workforce Development Fund to cover up to 50% of
administrative costs in a fiscal year, if necessary for cash
flow purposes, as specified.
10)Requires DIR to develop standards and procedures for
implementing the requirements of this bill, as specified, by
July 1, 2017.
11)Requires, after February 1, 2018, DIR's website to include a
regularly updated, searchable database of registered covered
employers as well as compliance and enforcement activities.
The database will have the capability to search all data for
at least the past ten years, and will include specified
information.
FISCAL EFFECT:
The Department of Industrial Relations estimates costs of $3.2
million initially and approximately $2 million ongoing. These
costs will be offset by the $1,000 registration fee and civil
penalties proposed in the bill. It is difficult to estimate how
many employers would be required to register and if the fees
generated would fully cover the costs of the program. DIR has
the authority to increase fees if necessary.
COMMENTS:
1)Purpose. This bill, sponsored by SEIU California, addresses
issues raised by a UC Berkeley Labor Center report on working
conditions in the property services industry. The report found
conditions in the property services industry that make workers
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more vulnerable to sexual harassment, sexual violence, and
wage theft. Among those factors, isolation in particular
increases the vulnerability to sexual assault. Supporters
state it is clear that the property services industry is in
need of regulation in order to protect vulnerable workers.
There are five main industries in California that operate
almost exclusively through contracting and subcontracting,
including construction, garment manufacturing, farm labor,
long-term care, and property services. Among these five
industries, all have a registry or licensing, except for
property services. In recognition that the state has acted to
regulate other industries with similar risk factors, similar
worker populations, and similar contracted labor, SEIU
believes the time has come to similarly regulate the property
services industry.
2)Comment. As noted in the fiscal effect, this bill will create
significant new workload for DIR. Administrative costs to the
DIR include the establishment of a hotline and coordinating
communications from workers and concerned parties with the
Department of Fair Employment and Housing and the National
Human Trafficking Center. Significant one-time resources are
needed to establish a registry for janitorial employers.
Ongoing support would also be needed to support staff to run
the registration, review documents, and conduct audits. The
bill would also require the DIR to create training materials
to educate workers and supervisors about a comprehensive
series of issues affecting janitorial workers. DIR would
likely contract with a provider to help develop such
materials. Additional resources are needed for DIR to convene
an ongoing advisory group and to help administer labor
compliance programs. Fees in the bill are intended to fully
cover these administrative costs.
3)Opposition. The California Chamber of Commerce opposes this
bill. The opposition is concerned that the bill proposes
unprecedented standards that far exceed the need to address
issues in the underground economy. They are concerned that
some of the provisions in this bill are so extreme, it will
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encourage unlawful actors to continue to operate in the
underground economy, as the cost of compliance is too high.
They state the enforcement mechanism and penalties proposed in
the bill are overly punitive and unprecedented.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081