BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1978|
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                                   THIRD READING 


          Bill No:  AB 1978
          Author:   Gonzalez (D), et al.
          Amended:  6/22/16 in Senate
          Vote:     21 

           SENATE LABOR & IND. REL. COMMITTEE:  4-1, 6/29/16
           AYES:  Mendoza, Jackson, Leno, Mitchell
           NOES:  Stone

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 8/11/16
           AYES:  Lara, Beall, Hill, McGuire, Mendoza
           NOES:  Bates, Nielsen

           ASSEMBLY FLOOR:  51-23, 6/2/16 - See last page for vote

           SUBJECT:   Employment:  property service workers


          SOURCE:    Equal Rights Advocates
                     Service Employees International Union


          DIGEST:  This bill creates a registration process for janitorial  
          employers and requires sexual harassment and violence prevention  
          training for janitorial workers.


          ANALYSIS:  
           
           Existing law: 

           1) Prohibits an employer, labor organization, employment  
             agency, apprenticeship training program or any training  








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             program leading to employment, from harassing an employee, an  
             applicant, an unpaid intern or volunteer, or a person  
             providing services pursuant to a contract by an employee.  
             (Government Code §12940(j))

           2) Establishes the Displaced Janitor Opportunity Act, which  
             requires that a successor contractor retains employment of  
             the predecessor contractor's employees for a 60-day  
             transition period. (Labor Code §§1060-1065)
           
           This bill creates the Property Services Workers Protection Act,  
          which seeks to protect janitorial employees from wage theft and  
          sexual harassment. Specifically, this bill:
          
           1) Defines "covered worker" to mean a janitor, including any  
             individual working, whether as an employee, independent  
             contractor, or a franchisee, as a janitor.  If an  
             individual's work duties are predominantly those of a  
             janitor, that person shall be deemed as janitor for purposes  
             of this bill.


           2) Defines "covered 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. This includes  
             successor employers.




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




          Workplace Sexual Violence and Sexual Harassment


           4) Requires the Division of Labor Standards Enforcement (DLSE),  
             no later than January 1, 2018, to do all of the following:









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              a)    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.



              b)    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.



              c)    Establish minimum qualification standards for trainers  
                who may deliver such training, including, but not 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.



              d)    Establish requirements for employers to maintain  
                accurate records of training, as specified.



              e)    Require employers to post and display prominently a  
                notice, developed by the DLSE and posted on its Web site,  
                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  







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                                                                    Page  4


                who have experienced sexual harassment and human  
                trafficking.



              f)    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.

              g)    Issue such regulations as are necessary to carry out  
                this bill.



           5) Requires 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.



          Registration of Janitorial Contractors

           6) Provides 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.



           7) Provides that, in order to qualify for a certificate of  
             registration or renewal, an employer shall:



              a)    Beginning January 1, 2018, register with DLSE and pay  
                an initial application fee of $500 and an annual renewal  







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                fee of $500.



              b)    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.



              c)    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.



           8) Establishes specified posting and recordkeeping requirements  
             for covered employers.



           9) Provides that DLSE shall not grant registration or renewal  
             of registration to specified employers, including lacking  
             workers' compensation coverage, making false statements or  
             has not submitted the necessary application information, or  
             has a delinquent liability to the state or a worker.



           10)Authorizes 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.



          Enforcement 









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



           12)Establishes civil penalties of $2,500 for failing to have a  
             current and valid registration or violating the provisions of  
             this act.





           13)Establishes 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).

           14)Authorizes 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.



           15)Establishes 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.





           16)Permits DLSE to audit employers in order to ensure  
             compliance with this Act.









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          Online Posting of Janitorial Contractor Registry and Database

           17)Provides that, after February 1, 2018, the Department of  
             Industrial Relations (DIR) Web site shall include a regularly  
             updated, searchable database of registered covered employers.  
              The database will have the capability to search all data for  
             at least the past 10 years, and will include specified  
             information.



           18)Provides that after July 1, 2018, DIR's Web site 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.  





          Fair Employment and Housing Act (FEHA) Protections





           19)Extends 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.





           20)Creates 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.









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          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes


          According to the Senate Appropriations Committee, the DIR  
          estimates that it would incur initial costs of $3.5 million and  
          ongoing costs of $2.3 million to implement the provisions of  
          this bill (special fund). These costs would be somewhat offset  
          by this 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.


          SUPPORT:   (Verified8/12/16)


          Equal Rights Advocates (co-source)
          Service Employees International Union (co-source)
          Alliance San Diego
          Black Community Clergy and Labor Alliance
          Black Immigration Network
          California Democratic Party - African American Caucus
          California Domestic Workers Coalition
          California Employment Lawyers Association
          California Immigrant Policy Center
          California Labor Federation 
          Carecen
          Clean Car Wash Campaign
          Clergy and Laity United for Economic Justice
          Coalition for Humane Immigrant Rights of Los Angeles
          Creating Justice LA
          East Bay Alliance for a Sustainable Economy
          Faith Alliance for a Moral Economy
          Holy Faith Episcopal Church
          Instituto de Educación Popular del Sur de California 
          Jewish Labor Committee
          Los Angeles Airport Peace Officers Association
          Los Angeles Alliance for a New Economy
          Los Angeles County Federation of Labor
          Los Angeles Urban League







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          Methodist Federation for Social Action
          Multi-Faith ACTION Coalition
          National Action Network
          National Action Network Los Angeles
          North County Immigration Task Force
          Pacoima Beautiful
          Peace Over Violence
          Pilgrim United Church of Christ, Board of Social Justice
          PODER
          Restaurant Opportunities Center - Los Angeles
          San Diego Immigrant Rights Consortium
          San Francisco Living Wage Coalition
          SEIU Local 99
          Southern Christian Leadership Conference
          The Row LA - Church Without Walls - Skid Row Ministries
          Unitarian Universalist Justice Ministry of California
          Unitarian Universalist Refugee & Immigrant Services & Education
          United Domestic Workers- AFSCME Local 3930
          Us Organization
          Workers United Western States Regional Board


          OPPOSITION:   (Verified8/12/16)


          Building Owners and Managers Association
          California Business Properties Association
          California Chamber of Commerce
          CAWA - Representing the Automotive Parts Industry
          International Council of Shopping Centers
          NAIOP - Commercial Real Estate Development Association
          National Federation of Independent Business
          Pacific Association of Building Service Contractors


          ARGUMENTS IN SUPPORT:     The proponents note the findings of  
          the recent report by the University of California, Berkeley  
          Labor Center reported on the conditions in the property services  
          industry.  Specifically, the sponsor points to the report's  
          survey, which found that 32 percent of workers in the property  
          services industry were paid less than the minimum wage, and that  
          80 percent of workers were not paid the legally required  
          overtime.  Noting the report's finding that the property service  
          industry has specific risk factors that make workers more  







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          vulnerable to sexual harassment and violence, the proponents  
          believe that additional workplace protections are necessary to  
          protect workers in the janitorial industry. The proponents note  
          that existing law already provides a registration process for  
          other high hazard industries, such as farm labor contracting and  
          garment manufacturing. Proponents believe that, by combining a  
          registration process with sexual harassment and violence  
          training and posting requirements to notify workers of their  
          rights, AB 1978 will make significant progress in protecting  
          vulnerable workers from sexual harassment, sexual violence, and  
          other forms of exploitation.




          ARGUMENTS IN OPPOSITION:     The California Chamber of Commerce  
          and other opponents have taken an oppose unless amended position  
          to AB 1978 (Gonzalez). First, the opponents note that the author  
          has addressed their past concerns through amendments, and they  
          appreciate the author's efforts to work with them on these  
          issues. However, the opponents argue that AB 1978 includes other  
          unprecedented standards that exceed the need to address issues  
          in the underground economy, including penalties and suspension  
          of a company's registration for poster and notice violations as  
          well as stop orders. The opponents believe that the provisions  
          in AB 1978 are so extreme that it will encourage unlawful actors  
          to continue to participate in the underground economy, as the  
          cost of compliance is too high. Opponents note that they are  
          hopeful that they will be able to resolve these outstanding  
          concerns with the author.

          ASSEMBLY FLOOR:  51-23, 6/2/16
          AYES:  Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown,  
            Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper,  
            Dababneh, Daly, Dodd, Eggman, Cristina Garcia, Eduardo Garcia,  
            Gatto, Gipson, Gomez, Gonzalez, Gray, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Levine, Linder, Lopez, Low, McCarty,  
            Medina, Mullin, Nazarian, O'Donnell, Quirk, Ridley-Thomas,  
            Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber,  
            Williams, Wood, Rendon
          NOES:  Achadjian, Travis Allen, Baker, Brough, Chang, Chávez,  
            Dahle, Gallagher, Grove, Harper, Jones, Kim, Lackey,  
            Maienschein, Mathis, Mayes, Melendez, Obernolte, Olsen,  
            Patterson, Steinorth, Wagner, Wilk







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          NO VOTE RECORDED:  Bigelow, Frazier, Beth Gaines, Gordon,  
            Hadley, Waldron

          Prepared by:Gideon L. Baum / L. & I.R. / (916) 651-1556
          8/15/16 20:17:24


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