BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                       AB 1978|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |

                                   THIRD READING 

          Bill No:  AB 1978
          Author:   Gonzalez (D), et al.
          Amended:  8/19/16 in Senate
          Vote:     21 

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

           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.

          Senate Floor Amendments of 8/19/16 revise and recast the  
          existing provisions of this bill to create a janitorial service  
          registration with a mandatory sexual harassment training  



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           Existing law: 

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

           3) Defines "successor employer" as an employer who uses  
             substantially the same equipment, supervisors, and workforce  
             to offer substantially the same services to substantially the  
             same clients as a predecessor employer, unless the successor  
             was already in the janitorial business and was not connected  
             or related to the prior employer, as specified.

          Registration of Janitorial Contractors

           4) Provides that on and after January 1, 2018, no employer may  
             conduct any janitorial business without a valid registration  


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             and all employers must be registered with the Division of  
             Labor Standards Enforcement (DLSE).

           5) 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  
                fee of $500.

              b)    Execute a written application, that contains specified  
                information, including the address and name of the  
                business and the workers' compensation policy for the  

              c)    State if there are outstanding liens and suits or  
                unpaid wages or unpaid taxes or if the employer has been  
                cited for a Labor Code violation.

           6) Provides that DLSE shall not grant registration or renewal  
             of registration to employers who owe back taxes or unpaid  

           7) Authorizes DLSE to revoke a registration specified  
             requirements are not met.



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           8) Requires DLSE to enforce the provisions of the Act.

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

           10)Establishes additional civil fines 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 $10,000.

           11)Establishes civil fines of $2,000 to $25,000 for an entity  
             or individual who contracts with an unregistered janitorial  
             services company.

          Online Posting of Janitorial Contractor Registry

           12)Requires the DLSE maintains a public database of property  
             service employers, on the Internet Web site of the Department  
             of Industrial Relations (DIR), including the name, address,  
             registration number, and effective dates of registration.

          Workplace Sexual Violence and Sexual Harassment

           13)Requires DLSE, no later than January 1, 2019, to develop a  
             biennial sexual harassment and violence prevention training.  
             Prior to the development of the training, DLSE must convene  
             an advisory group composed of representatives of the Division  
             of Labor Standards Enforcement, the Division of Occupational  
             Safety and Health, and the Department of Fair Employment and  
             Housing, and shall also include representatives from a  
             recognized or certified collective bargaining agent that  


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             represents janitorial workers, employers, labor-management  
             groups in the janitorial industry, sexual assault victims  
             advocacy groups, and other related subject matter experts. 

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

          According to the Senate Appropriations Committee, the DIR  
          estimates that the prior version of this bill would incur  
          initial costs of $3.5 million and ongoing costs of $2.3 million  
          to implement the provisions of this bill (special fund). An  
          updated fiscal analysis of the bill in print is currently  

          SUPPORT:   (Verified8/22/16)

          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 
          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
          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:   (Verified8/22/16)

          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  
          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  


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          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 Pacific Association of Building  
          Service Contractors 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. 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.

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

          Prepared by:Gideon L. Baum / L. & I.R. / (916) 651-1556
          8/22/16 22:41:11

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