BILL ANALYSIS Ó
AB 1978
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ASSEMBLY THIRD READING
AB
1978 (Gonzalez)
As Amended May 31, 2016
Majority vote
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|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 | |
| | | | |
| | | | |
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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
AB 1978
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