BILL ANALYSIS Ó SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS Senator Tony Mendoza, Chair 2015 - 2016 Regular Bill No: AB 2025 Hearing Date: June 29, 2016 ----------------------------------------------------------------- |Author: |Gonzalez | |-----------+-----------------------------------------------------| |Version: |June 9, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Alma Perez-Schwab | | | | ----------------------------------------------------------------- Subject: Barbering and cosmetology: labor law education requirements KEY ISSUES Should the Legislature require that the Board of Barbering and Cosmetology (BBC) offer all written materials provided to licensees and applicants in English, Spanish and Vietnamese? Should the BBC be required to provide practitioner and establishment applicants with information about basic labor laws when they apply for a license? Should the BBC include basic labor law information in health and safety curriculum taught in BBC-approved schools? ANALYSIS Existing law: 1) Provides for the licensure regulation of the practice of barbering, cosmetology and electrolysis under the Barbering and Cosmetology Act by the Board of Barbering and Cosmetology (BBC). (Business and Professions Code (BPC) AB 2025 (Gonzalez) Page 2 of ? §7300 et. seq.) 2) Requires the BBC to establish a Health and Safety Advisory Committee to provide advice and recommendations on health and safety issues. (BPC §7314.3) 3) Details requirements for applicants for licensure as a cosmetologist, barber, esthetician, manicurist and electrologist (collectively beautification service providers) to complete in order to take BBC required examinations, including proof of the applicant's qualifications verified by the oath of the applicant. (BPC §7337) 4) Requires the BBC to maintain a program of random and targeted inspections of establishments to ensure compliance with applicable laws relating to the public health and safety and the conduct and operation of establishments. (BPC §7353) 5) Requires licensees to report to BBC upon renewal, including: (BPC §7401) a. License status, as defined. b. Identification as an employee, independent contractor, booth renter or salon owner. c. For establishments, whether a booth renter is operating in the establishment or whether an independent contractor is operating in the establishment. 1) Establishes the Dymally-Alatorre Bilingual Services Act which, among other things, mandates that every State agency that serves a substantial number of non-English-speaking people and provides materials in English explaining services, shall also provide the same type of materials in any non-English language spoken by a substantial number of the public served by the agency. (Government Code Section 7290 et seq.) 2) Establishes the Division of Labor Standards Enforcement (DLSE) and grants the Chief of DLSE (Labor Commissioner) and his or her employees' access to all places of labor for purposes of labor law enforcement. 3) States the policy of this state to vigorously enforce AB 2025 (Gonzalez) Page 3 of ? minimum labor standards in order to ensure employees are not required or permitted to work under substandard unlawful conditions or for employers that have not secured the payment of compensation, and to protect lawful employers from those who attempt to gain a competitive advantage at the expense of their workers by failing to comply with minimum labor standards. 4) Requires the Labor Commissioner to adopt an enforcement plan for the field enforcement unit which shall identify priorities for investigations that ensure the available resources will be concentrated in industries, occupations, and areas in which employees are relatively low paid and unskilled, and those in which there has been a history of violations and those with high rates of noncompliance with the law. (Labor Code §90.5) 5) Requires employers, at the time of hiring, to provide each employee a written notice, in the language normally used to communicate employment-related information to the employee, containing information about the rate or rates of pay. (Labor Code §2810.5) This Bill would require the Board of Barbering and Cosmetology (BBC) to provide practitioner and establishment applicants with information about basic labor laws, as specified, in addition to requiring that the information be provided in various specified languages. Specifically, this bill: 1) Requires BBC to offer and make available all written materials provided to licensees and applicants in English, Spanish, and Vietnamese. 2) Requires BBC, beginning January 1, 2018, to collect demographic information for establishment license applicants, through optional questions on the applications for a license issued pursuant to Section 7396.1, including but not limited to the applicant's spoken and written language preference. 3) Expands the role of the BBC Health and Safety Advisory Committee to require recommendations be provided on issues AB 2025 (Gonzalez) Page 4 of ? impacting board licensees, including how to ensure licensees are aware of basic labor laws. States that basic labor laws (BLLs) includes, but is not limited to all of the following: a. Key differences between the legal rights, benefits, and obligations of an employee and an independent contractor; b. Wage and hour rights for hourly employees; c. Antidiscrimination laws relating to the use of a particular language in the workplace; d. Anti-retaliation laws relating to a worker's right to file complaints with the Department of Industrial Relations and; e. How to obtain more information about state and federal labor law. 4) Requires applications for licensure as a beautification service provider to include a signed acknowledgment that the applicant understands his or her rights as a licensee as outlined in informational materials on BLLs that is provided by the BBC with the application. 5) Requires applications for licensure as an establishment to include a signed acknowledgment that the applicant understands that establishments are responsible for compliance with any applicable labor laws of the state and that the applicant understands the informational materials on BLLs that is provided by BBC with the application. 6) Requires the BCC to add the specified basic labor laws to the health and safety course developed or adopted to be taught in BBC-approved schools. COMMENTS 1. Concerns about Nail Salons and Experiences on Nail Salon Employees: According to the Senate Business, Professions & Economic Development Committee: "Nail salons have been the focus of studies and media reports AB 2025 (Gonzalez) Page 5 of ? in recent years stemming from health, safety and labor concerns in these settings. In May 2015, the New York Times (NYT) published two articles stemming from interviews with more than 150 nail salon workers and owners that found that a cast majority of workers are paid below minimum wage and are sometimes not even paid. The articles found that workers "endure all manner of humiliation, including having their tips docked as punishment for minor transgressions, constant video monitoring by owners, even physical abuse." The NYT also found that employers are rarely punished for labor and other violations and that in 2014, when the New York State Labor Department conducted its first nail salon sweep, investigators inspected 29 salons and found 116 wage violations. While only about a quarter of the more than 100 workers said they were paid an amount equivalent to that state's minimum hourly wage, all but three said they had wages withheld in ways considered illegal, such as never getting overtime and many were unaware that working unpaid was against the law and their alarmingly low wages are also illegal. A February 2016 follow up report in the NYT articles found that 40 percent of the salons inspected, as part of the Labor Department's increased efforts to inspect following the original May articles, underpaid employees, including one worker at a Manhattan salon who was paid $30 a day for 10-hour shifts, a manicurist in Queens who was paid only $200 for a 50-hour workweek, manicurists at seven salons who were forced to work for no pay or had to pay salon owners a fee, ostensibly to learn the trade and several owners admitted to submitting fake payroll records in an effort to fool investigators. The article highlighted that employers are often unfamiliar with the intricacies of state labor laws." 2. Need for this bill? On August 26, 2015, the California Assembly Select Committee on Women in the Workplace, the Assembly Select Committee on Girls and Women of Color, and the Assembly Committees on Health, Business and Professions, and Labor held a joint informational hearing titled "Labor Practices, Health, and Safety in California Nail Salons." The purpose of the hearing was to obtain information, address concerns, and discuss policy recommendations regarding nail salon practices from state agencies, advocates, and industry. AB 2025 (Gonzalez) Page 6 of ? According to the hearing briefing paper, California is home to more than 8,500 nail salons and over 95,000 nail technicians, accounting for a quarter of the country's nail salon workers. In 2014, roughly 75% of these California nail salons were owned or operated by Vietnamese Americans. The briefing paper also cites a 2006 study by Cornell University, which found that within California's nail technician work force, Vietnamese workers increased from 10 percent in 1987 to 59 percent in 2002, and percentages continue to grow. The author notes that the most widely agreed-upon problem discussed at the hearing was lack of information about worker rights. According to the author, this lack of information, combined with cultural and language barriers, has led to some nail salon owners using illegal practices to manage workers. These practices include employee/contractor misclassification, daily pay totaling less than minimum wage, unpaid overtime, withholding tips or deducting pay as retaliation, denying meal breaks, and language discrimination. The author states that it is clear to many stakeholders that the use of such illegal labor practices is not always malicious, so one commonsense step is to ensure that owners are informed of existing laws. This bill utilizes the current establishment application process to increase awareness of basic labor laws relevant by requiring the Board of Barbering and Cosmetology to provide practitioner and establishment applicants with this information at the time of application. 3. Proponent Arguments : According to the author, California has many strong labor standards, but part of enforcing those laws is making sure workers know their rights, and that business owners are aware of obligations to the workers in those businesses. The author notes that "AB 2025 takes the opportunity to educate workers and salon owners using existing license application processes and training requirements. The Legislature also knows that language barriers are a problem for establishments regulated by the Board of Barbering and Cosmetology, especially nail salons, which is why AB 2025 includes provisions to improve language access for both workers and businesses." Proponents believe this measure strikes the right balance in its focus on education and removal of language barriers, while requiring owners to have a basic understanding of their obligations under California labor law. AB 2025 (Gonzalez) Page 7 of ? 4. Opponent Arguments : None received. 5. Double Referral : This bill has been double referred, and before coming to this Committee for a hearing, it was heard and passed by the Senate Business, Professions & Economic Development Committee. 6. Related Legislation : AB 2125 (Chiu) of 2016, requires the California Department of Public Health (DPH) to develop and publish guidelines for local governments to implement local healthy nail salon recognition programs with specified criteria, including the use of less toxic nail polishes and polish removers and improved ventilation. Requires DPH to develop awareness campaigns and post specified information on its Internet Web site. AB 2125 is pending before the Senate Business, Professions & Economic Development Committee. AB 2437(Ting) of 2016, requires on and after July 1, 2017, an establishment licensed by BBC to post a model notice pertaining to workplace rights and wage and hour laws, developed by the Labor Commissioner and requires the BBC to inspect for compliance of the posting requirement. AB 2437 is pending before the Senate Appropriations Committee. SB 1125(Nguyen) of 2016, requires BBC, for an establishment license, if the establishment will offer nail care services, to include a signed acknowledgement that an applicant understands their responsibility to comply with any applicable state labor laws and comply with the informational materials BBC selects or develops related to basic labor laws. SB 1125 is pending before the Assembly Business and Professions Committee. SUPPORT California Healthy Nail Salon Collaborative (Sponsor) Asian Health Services Asian & Pacific Islander American Health Forum AB 2025 (Gonzalez) Page 8 of ? Black Women for Wellness California Employment Lawyers Association California Immigrant Policy Center California Labor Federation California Pan-Ethnic Health Network Communications Workers of America, District 9 Community Action Marin Immigrant Resettlement & Cultural Center, Inc. National Employment Law Project Orange County Asian and Pacific Islander Community Alliance Worksafe 1 Individual OPPOSITION None received -- END --