BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1978


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          ASSEMBLY THIRD READING


          AB  
          1978 (Gonzalez)


          As Amended  May 31, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Labor           |5-2  |Roger Hernández, Chu, |Patterson, Linder   |
          |                |     |McCarty, O'Donnell,   |                    |
          |                |     |Thurmond              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |14-6 |Gonzalez, Bloom,      |Bigelow, Chang,     |
          |                |     |Bonilla, Bonta,       |Gallagher, Jones,   |
          |                |     |Calderon, Daly,       |Obernolte, Wagner   |
          |                |     |Eggman, Eduardo       |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Enacts a number of requirements related to the  
          janitorial industry.  Specifically, this bill:








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          1)Defines "covered worker" to mean a janitor, including any  
            individual predominantly working, whether as an employee,  
            independent contractor, or a franchisee, as a janitor.   
            "Covered workers" does not include any individual whose work  
            duties are predominantly the final cleanup of debris, grounds,  
            and buildings near the completion of a construction,  
            alteration, demolition, installation or repair work project.  


          2)Defines "employer" to mean any person or entity that employs  
            at least one employee and one or more covered workers and that  
            enters into contracts, subcontracts, or franchise agreements  
            to provide janitorial services.


          Workplace Sexual Violence and Sexual Harassment


          3)Requires the Labor Commissioner (LC), no later than January 1,  
            2018, to do all of the following:


             a)   Develop worker and supervisor agendas, handouts, trainer  
               guides, and other materials for a four-hour training  
               regarding sexual violence and sexual harassment and other  
               specified information.  The LC shall provide these  
               materials in all languages that are the language spoken at  
               home of at least 2,000 janitors who reside in the state,  
               and shall update these materials on or before July 1 of  
               each year
             b)   Establish minimum qualification standards for trainers  
               who may deliver such 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 such trainings.








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             c)   Develop a specified notice to be posted by employers, as  
               specified.


          4)Requires employers, on and after  July 1, 2018, to:
             a)   Have a system to require all covered workers and  
               supervisors to, at least annually, receive in-person  
               training lasting at least four hours regarding workplace  
               sexual violence and sexual harassment, as specified.
             b)   Maintain accurate records for at least three years  
               documenting training, as specified.


             c)   Post and prominently display a specified notice.


          5)Requires the LC and the Division of Occupational Safety and  
            Health to appoint an advisory group of stakeholders, as  
            specified, to assist in carrying out their respective  
            responsibilities under this bill
          6)Requires the Occupational Safety and Health Standards Board  
            (Standards Board), no later than January 1, 2018, in  
            consultation with the advisory group, 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, to protect covered workers from  
            workplace sexual violence and sexual harassment, and that  
            includes specified elements.


          7)Provides that this bill shall not 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, nor shall it be interpreted to  
            preclude the Standards Board from adopting standards that  
            require an employer subject to this bill, or any other  
            employer, to adopt a workplace violence or harassment  








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            prevention plan that includes elements or requirements  
            additional to, or broader in scope than, those described in  
            this bill.


          Registration of Janitorial Contractors


          8)Requires the LC, on and after January 1, 2018, to maintain an  
            online registration system of employers.


          9)Provides that on and after July 1, 2018, no employer may  
            conduct any janitorial business without a current and valid  
            registration and all employers must be registered with the LC.


          10)Provides that, on and after January 1, 2018, in order to  
            qualify for a certificate of registration or renewal, an  
            employer shall:


             a)   Register online with the LC and pay an initial  
               application fee of $1,000 and an annual renewal fee of  
               $1,000.
             b)   Execute a written application, sworn to by the employer  
               under penalty of perjury, that contains specified  
               information.


             c)   Execute a written report that provides evidence or  
               disclosures under penalty of perjury as are necessary to  
               establish specified information.


          11)Establishes specified posting and recordkeeping requirements  
            for covered employers.
          12)Provides that the LC shall not grant registration or renewal  
            of registration to any employer who meets specified criteria.








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          13)Requires the LC to suspend a registration if specified  
            criteria are met.


          14)Authorizes the LC to suspend a registration if specified  
            requirements are met.


          15)Specifies the conditions under which the LC may reissue a  
            registration after suspension.


          16)Requires the LC to establish a Property Services Compliance  
            Unit to enforce the requirements of this bill.


          17)Establishes specified civil penalties.


          18)Authorizes the LC, as specified, to issue a stop order  
            against an employer that is conducting business without a  
            current and valid registration.


          19)Authorizes the LC to select employers as audit subjects for  
            the purpose of determining compliance with this bill, as  
            specified.


          20)Establishes specified criminal penalties for an employer that  
            conducts any janitorial business after its registration has  
            been suspended, revoked, or denied reissuance.


          21)Establishes the State Janitorial Contractor Registration Fund  
            (Fund), to be funded by registration fees and civil penalties.  
             Moneys in the Fund shall only be used for administering the  








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            registration of janitorial contractors and the administration  
            and enforcement of the requirements of this bill.


          Online Posting of Janitorial Contractor Registry and Database


          22)Provides that, after July 1, 2018, the LC shall maintain a  
            regularly updated, searchable online database of all  
            registered employers.  The database will have the capability  
            to search all data for at least the past ten years, and will  
            include specified information.


          23)Provides that after July 1, 2019, the LC shall maintain a  
            searchable online database regarding its 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.


          Other Provisions  


          24)Provides that for purposes of specified provisions of  
            existing law dealing with whistleblowers, "employee" includes  
            any covered worker as defined in this bill.


          25)Provides that, on and after July 1, 2018, for purposes of  
            provisions of the Fair Employment and Housing Act dealing with  
            harassment, any person or entity that contracts with a  
            janitorial employer who lacks a current and valid registration  
            is an "employer" for purposes of those harassment provisions.   
            A person or entity that contracts with a janitorial provider  
            who has a current and valid registration is presumed not to be  
            an "employer" for such purposes.










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          26)Contains related legislative findings, declarations and  
            statements of intent.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, the Department of Industrial Relations estimates  
          costs of $3.2 million initially and approximately $2.0 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:  This bill establishes various requirements for the  
          janitorial industry, including a registration requirement and  
          protections against workplace sexual violence and harassment.   
          According to the author, among the purpose of this bill is to  
          lower instances of sexual harassment, sexual violence, and human  
          trafficking in the property services industry, where it is  
          particularly prevalent. 


          This bill is sponsored by SEIU California.  They and other  
          supporters of the bill argue that a recent report by the  
          University of California, Berkeley, Labor Center reported on the  
          conditions in the property services industry.  The report noted  
          a survey which found that 32% of workers in the property  
          services industry were paid less than minimum wage, and 80% were  
          not paid the legally required overtime when they worked more  
          than 40 hours a week.  The same survey also found that janitors  
          and security officers are disproportionately workers of color  
          and immigrants; more than 70% of contracted janitors were born  
          outside the United States.  The report also cited specific  
          conditions in the property services industry which make workers  
          more vulnerable to sexual harassment, sexual violence, and wage  
          theft.  Among those factors, isolation in particular increases  
          the vulnerability to sexual assault.  They argue that the state  
          has acted to regulate other industries with similar risk  








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          factors, similar worker populations, and similar contracted  
          labor.  They believe the time has come to similarly regulate the  
          property services industry. 


          The California Chamber of Commerce (CalChamber) opposes this  
          bill unless amended.  They state that the business community has  
          repeatedly participated in efforts to address the underground  
          economy.  Employers who intentionally disregard the law not only  
          hurt employees, but other businesses in the industry who are  
          trying to comply with the myriad of California labor and  
          employment laws, tax laws, licensing requirements, etc.   
          However, they state that this bill proposes unprecedented  
          standards that simply 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 either:  1)  
          limit the participation of good acting businesses in the  
          industry; or, 2) encourage those unlawful actors to continue to  
          operate in the underground economy, as the cost of compliance is  
          too high.  CalChamber also argues that the enforcement mechanism  
          and penalties proposed in this bill are overly punitive and  
          unprecedented.  Finally, CalChamber argues that several of the  
          other provisions of this bill are overbroad, unprecedented, and  
          too onerous. 


          Analysis Prepared by:                                             
                          Ben Ebbink / L. & E. / (916) 319-2091  FN:  
          0003299


















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