BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1978|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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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
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.
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
requirement.
ANALYSIS:
AB 1978
Page 2
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
AB 1978
Page 3
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
business.
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
wages.
7) Authorizes DLSE to revoke a registration specified
requirements are not met.
Enforcement
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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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Page 5
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
unavailable.
SUPPORT: (Verified8/23/16)
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
Pacific Association of Building Service Contractors
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: (Verified8/23/16)
None received
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
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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.
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
8/23/16 13:34:43
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