BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1978 (Gonzalez) - Employment: property service workers ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: June 22, 2016 |Policy Vote: L. & I.R. 4 - 1 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 1, 2016 |Consultant: Robert Ingenito | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 1978 would (1) create a registration process for janitorial employers, and (2) require sexual harassment and violence prevention training for janitorial workers. Fiscal Impact: The Department of Industrial Relations (DIR) estimates that it would incur initial costs of $3.5 million and ongoing costs of $2.3 million to implement the provisions of the bill (special fund). These costs would be somewhat offset by the bill's proposed registration fee and civil penalties. It is difficult to estimate how many employers would be required to register and whether the fees generated would fully cover the costs of the program. DIR has the authority to increase fees if necessary. AB 1978 (Gonzalez) Page 1 of ? Background: The UC Berkeley Labor Center recently released a report with the following findings related to the janitorial industry: (1) research statistics and in-depth interviews suggest that women janitors are at risk of sexual harassment and assault in what are often isolated working conditions, (2) sexual harassment policies are not in place or are inadequate or unenforced, (3) workers may not know to whom they can report harassment, even if they know harassment is illegal, (4) supervisors are often not trained on how to respond, and (5) janitors are disproportionately workers of color and immigrants; 75 percent of contracted janitors were born outside the U.S. Proposed Law: This bill would create the Property Services Workers Protection Act, which seeks to protect janitorial employees from wage theft and sexual harassment. Specifically, this bill would, among other things, do the following. Require DSLE, no later than January 1, 2018, to do the following: o Develop worker and supervisor agendas, handouts, facilitation guides, and other materials for a four-hour training regarding sexual harassment, sexual violence, and human trafficking that are appropriate for the janitorial industry and the languages and literacy levels of covered workers, as specified. DLSE 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 annually. o Establish requirements that employers shall require all covered workers and supervisors, to at least annually, receive comprehensive, accurate and appropriate in-person training lasting at least four hours regarding sexual harassment and sexual assault that provides an opportunity for interactive questions and answers, as specified. o Establish minimum qualification standards for trainers who may deliver such training, including but not AB 1978 (Gonzalez) Page 2 of ? limited to, a minimum of three years of experience conducting adult education with non-English speakers with a reading ability at or below the fifth grade level in the language spoken at home. The collective bargaining agent that represents the employer's covered workers or the designee of the collective bargaining agent may deliver such trainings. o Establish requirements for employers to maintain accurate records of training, as specified. o Require employers to post and display prominently a notice, developed by the DLSE and posted on its website, that informs covered workers of their rights under the sexual harassment and human trafficking laws, contain examples of illegal employer conduct, and provide the contact information for local resources to assist those who have experienced sexual harassment and human trafficking. o Appoint, along with the Division of Occupational Safety and Health, an advisory group of stakeholders to assist them in carrying out their respective responsibilities under this bill. The advisory group must include representatives from at least one nonprofit organization that advocates for policies and standards to prevent workplace sexual violence and harassment in the janitorial industry, and from a labor organization that represents covered workers. o Issue such regulations as are necessary to carry out this bill. Require the Occupational Safety and Health Standards Board, no later than July 1, 2018, 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 sexual violence and harassment. AB 1978 (Gonzalez) Page 3 of ? Provide that on and after January 1, 2018, no employer may conduct any janitorial business without a valid registration and all employers must be registered with DLSE. Provide that, in order to qualify for a certificate of registration or renewal, an employer shall: o Beginning January 1, 2018, register with DLSE and pay an initial application fee of $500 and an annual renewal fee of $500. o Execute a written application, under penalty of perjury, that contains specified information, including an oath that the employer shall follow all applicable federal, state, and local laws. o Provide evidence, disclosures, or releases under penalty of perjury, as are necessary to establish specified information, including proof of workers' compensation coverage and if the employer is liable for any delinquent liabilities, which includes unpaid wages and arbitration awards due to sexual harassment, including interest, fines, and penalties. Establish specified posting and recordkeeping requirements for covered employers. Provide that DLSE shall not grant registration or renewal of registration to specified employers, including lacking workers' compensation coverage, made false statements or has not submitted the necessary application information, or has a delinquent liability to the state or a worker. AB 1978 (Gonzalez) Page 4 of ? Authorize DLSE to revoke, suspend, or place a registration on probation if specified requirements are met, including failing to maintain a bond for payment of a delinquent liability. Require DLSE to establish a Property Services Compliance Unit to enforce the requirements of this bill. Establish civil penalties of $2,500 for failing to have a current and valid registration or violating the provisions of this act. Establish additional civil penalties against any employer that has been previously assessed civil penalties to an additional penalty of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of Act, not to exceed one hundred thousand dollars ($100,000). Authorize DLSE to issue a stop order against an employer that is conducting business without a valid registration, and establishes criminal penalties for an employer that fails to observe a stop order. Establish the State Janitorial Contractor Registration Fund, to be funded by registration fees and civil penalties. Moneys in the Fund shall only be used for administering the registration of janitorial contractors and the administration and enforcement of the requirements of this bill. Permit DLSE to audit employers in order to ensure compliance with this Act. Provide that, after February 1, 2018, DIR's website shall include a regularly updated, searchable database of registered covered employers. The database will have the AB 1978 (Gonzalez) Page 5 of ? capability to search all data for at least the past ten years, and will include specified information. Provide that after July 1, 2018, DIR's website shall include a searchable 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. Extend FEHA liability due to sexual harassment or violence by a janitorial employer or supervisor to a person or entity who contracts or subcontracts with a janitorial employer who lacks a current or valid registration. Create a presumption that a person or entity that contracts with a janitorial employer who has a current and valid registration is NOT liable for a FEHA violation due to sexual harassment or violence by a janitorial employer or supervisor against a janitorial worker. Related Legislation: AB 350 (Solorio) of 2011 would have expanded the provisions of existing law which requires janitorial or building maintenance service contractors to retain employees for 60 days following the awarding of a contract. The bill failed passaged on the Senate Floor. Staff Comments: This bill would create significant new workload for DIR. As noted above, the department estimates costs of $3.5 million initially and $2.3 million ongoing, offset to some extent by registration fees and civil penalties. It is difficult to estimate how many employers would be required to register and whether the fees generated would fully cover the costs of the AB 1978 (Gonzalez) Page 6 of ? program. DIR has the authority to increase fees if necessary. DIR would allocate these new resources for staff to operate the Property Services registration unit and administer the additional enforcement requirements posed by the bill. A one-time allocation would be required to develop the sexual harassment and violence prevention training materials as specified with ongoing resources to handle translating updated materials. Additionally the Department would require resources to create the database required by this bill and estimates costs for ongoing maintenance. Any local government costs resulting from the mandate in this measure are not state-reimbursable because the mandate only involves the definition of a crime or the penalty for conviction of a crime. -- END --