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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Page 2
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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Page 3
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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Page 5
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.
AB 1978
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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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Page 10
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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