BILL ANALYSIS Ó AB 2028 Page 1 Date of Hearing: April 6, 2016 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL SECURITY Rob Bonta, Chair AB 2028 (Cooper) - As Introduced February 16, 2016 SUBJECT: School and safety employees: wrongful termination: service credit SUMMARY: Clarifies that "wrongfully" terminated school and local safety employees are entitled to have their service credit restored in the California Public Employees' Retirement System (CalPERS). Specifically, this bill: 1)Requires that the service credit and compensation earnable for a wrongfully terminated school classified or local safety member of CalPERS be restored, as specified. 2)Requires the employer of a wrongfully terminated employee to notify CalPERS of a final decision ordering reinstatement of the employee, as specified. 3)Defines "wrongful termination" for purposes of this section as any termination action by an employer that has been reversed or modified by a final decision ordering reinstatement. AB 2028 Page 2 4)Defines "final decision ordering reinstatement" for purposes of this section as a final decision of the employer, a court, an administrative agency, a personnel commission, or an arbitrator, that orders the reinstatement of the employee to employment. FISCAL EFFECT: Unknown. COMMENTS: According to the author, "Last year in a wrongful termination case of a classified school employee, CSEA became aware that existing statutes to restore service credit for wrongfully terminated employees, apply only to state employees. Under current law, Government Code (GC) Section 19584 provides the authority to restore service credit for state workers when the State Personnel Board revokes or modifies a disciplinary action. In addition, GC Section 21198 provides the authority to restore service credit for all CalPERS members, who retired after being wrongfully terminated, but before the termination was reversed, pursuant to an administrative or judicial proceeding. "A strict reading of these code sections could be deemed not to provide the same treatment for wrongfully terminated school, safety, and some local agency employees, as provided to state employees. "By clarifying that a wrongfully terminated school classified or local safety employee is entitled to have restored the service credit that would have been reported had he or she not been AB 2028 Page 3 wrongfully terminated, this bill will ensure parity and equity between these employees and state workers." Supporters contend that, "Without this clarifying fix, an employer would get away with retaining the savings from the CalPERS cost of that employee and the employee loses the service credit that he/she otherwise was entitled if the illegal termination did not occur. A clarifying statute is also important to protect school employees from 'bad' employers who may want to use this as a way to keep the savings in retaliation to the employee" REGISTERED SUPPORT / OPPOSITION: Support California School Employees Association, AFL-CIO (Sponsor) California Professional Firefighters (Co-sponsor) Association for Los Angeles Deputy Sheriffs California Labor Federation LIUNA Locals 777 & 792 AB 2028 Page 4 Los Angeles County Professional Peace Officers Association Los Angeles Deputy Probation Officers, AFSCME, Local 685 Los Angeles Police Protective League Riverside Sheriffs' Association Opposition None on file Analysis Prepared by:Karon Green / P.E.,R., & S.S. / (916) 319-3957