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