BILL ANALYSIS Ó
AB 1978
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CONCURRENCE IN SENATE AMENDMENTS
AB
1978 (Gonzalez)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: |51-23 |(June 2, 2016) |SENATE: | 35-1 |(August 25, |
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Original Committee Reference: L. & E.
SUMMARY: Enacts a number of requirements related to the
janitorial industry.
The Senate amendments revise the bill to:
1)Provide that, effective July 1, 2018 every employer shall
register with the Labor Commissioner (LC) annually.
2)Provide that the LC shall collect an initial nonrefundable
application fee of $500 and an annual fee of $500, and may
periodically adjust the registration fee, in an amount
sufficient to fund all direct and indirect costs to administer
and enforce this bill.
3)Provide that no employer may conduct any business without
complying with the registration requirements of this bill.
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The LC shall have authority to revoke a registration should an
employer be found to be out of compliance with any of the
requirements of this bill.
4)Provide that the LC may not approve the registration of any
employer until specified conditions are satisfied.
5)Provide that the LC may not register or renew the registration
of an employer in specified circumstances.
6)Provide that the LC shall maintain a public database of
property service employers, on the Web site of the Department
of Industrial Relations (DIR), including the name, address,
registration number, and effective dates of registration.
7)Provide that an employer who fails to register is subject to a
civil fine of $100 for each calendar day, not to exceed
$10,000, that the employer is unregistered.
8)Provide that any person or entity that contracts with an
employer who lacks a current and valid registration (as
displayed on the online registration database) is subject to a
civil fine of not less than $2,000 nor more than $10,000 in
the case of a first violation, and a civil fine of not less
than $10,000 nor more than $25,000 for a subsequent violation.
9)Provide that a successor employer is liable for any wages and
penalties its predecessor employer owes to any of the
predecessor employer's former employees, if the successor
employer meets any of the following criteria:
a) Uses substantially the same workforce to offer
substantially the same services as the predecessor
employer, as specified.
b) Shares in the ownership, management, control of the
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labor relations, or interrelations of business operations
with the predecessor employer.
c) Employs in a managerial capacity any person who directly
or indirectly controlled the wages, hours, or working
conditions of the affected employees of the predecessor
employer.
d) Is an immediate family member of any owner, partner,
officer, or director of the predecessor employer of any
person who had a financial interest in the predecessor
employer.
10)Require the LC to establish a biennial in-person sexual
violence and harassment prevention training requirement for
employees and employers covered by this bill by January 1,
2019.
11)Require the Director of DIR to convene an advisory committee
to recommend requirements for the sexual harassment prevention
training program.
12)Specify that the advisory committee shall be composed of the
Division of Labor Standards and Enforcement, the Division of
Occupational Safety and Health, the Department of Fair
Employment and Housing and include representatives from a
recognized or certified collective bargaining agent that
represents janitorial workers, employers, labor-management
groups in the janitorial industry, sexual assault victims
advocacy groups, and other related subject matter experts.
13)Require the Director of DIR to convene the advisory committee
no later than July 1, 2017.
14)Require the LC to propose the requirements for the sexual
violence and harassment prevention training requirement no
later than January 1, 2018.
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15)Provide that, effective January 1, 2020 all new applications
for registration and renewal of registration must complete the
sexual violence and harassment prevention training
requirements described above.
16)Provide that, as of July 1, 2018 employers covered by this
bill shall provide all new and current covered workers a copy
of Department of Fair Employment and Housing's pamphlet
DFEH-185, "Sexual Harassment" until the sexual violence and
harassment prevention training requirement described above is
established.
17)Contain other related provisions and procedures.
FISCAL EFFECT: According to the Senate Appropriations
Committee, 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.
COMMENTS: This bill establishes various requirements for the
janitorial industry, including a registration requirement and
protections against workplace sexual violence and harassment.
According to the author, among the purpose of this bill is to
lower instances of sexual harassment, sexual violence, and human
trafficking in the property services industry, where it is
particularly prevalent.
Supporters of the bill state, a recent report by the University
of California, Berkeley, Labor Center reported on the conditions
in the property services industry. The report noted a survey
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which found that 32% of workers in the property services
industry were paid less than minimum wage, and 80% were not paid
the legally required overtime when they worked more than 40
hours a week. The same survey also found that janitors and
security officers are disproportionately workers of color and
immigrants; more than 70% of contracted janitors were born
outside the United States. The report also cited specific
conditions in the property services industry which make workers
more vulnerable to sexual harassment, sexual violence, and wage
theft. Among those factors, isolation in particular increases
the vulnerability to sexual assault. They argue that the state
has acted to regulate other industries with similar risk
factors, similar worker populations, and similar contracted
labor. They believe the time has come to similarly regulate the
property services industry.
Recent amendments taken in the Senate have removed all
opposition to this bill.
Analysis Prepared by:
Ben Ebbink / L. & E. / (916) 319-2091 FN:
0004855