BILL ANALYSIS Ó AB 2261 Page 1 Date of Hearing: May 18, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2261 (Roger Hernández) - As Introduced February 18, 2016 ----------------------------------------------------------------- |Policy |Labor and Employment |Vote:|5 - 2 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill authorizes the Division of Labor Standards Enforcement (DLSE), in addition to receiving employee complaints for retaliation, to commence an investigation, issue a citation, or bring an action against an employer who discharges or otherwise discriminates against an individual in violation of any law under the jurisdiction of the Labor Commissioner, with or without receiving a complaint from an employee. FISCAL EFFECT: AB 2261 Page 2 Minor/absorbable costs to the Department of Industrial Relations. COMMENTS: 1)Purpose. Current law prohibits an employer from discharging, discriminating or retaliating against an employee for engaging in protected activities, such as whistleblower activities, or for filing a claim related to his or her rights that are under the jurisdiction of the Labor Commissioner. Any person who believes that he or she has been discharged or otherwise discriminated against can pursue civil action or file an administrative claim with the Labor Commissioner. The Labor Commissioner, however, currently lacks the authority to file an independent citation alleging that an employer has unlawfully retaliated against an employee or employees, even if the Labor Commissioner, for example, comes across evidence of retaliation during an investigation by the Bureau of Field Enforcement (BOFE). This bill, sponsored by the California Labor Federation, AFL-CIO, protects many workers who never make complaints, often because they fear retaliation by their employer. For example, a National Employment Law Project (NELP) study of immigrant hotel workers found that only 20% of those who had experienced work-related pain had filed workers' compensation claims for fear of getting "in trouble" or being fired. The sponsor states that this bill will strengthen the ability of the Labor Commissioner to enforce retaliation laws and will increase protection for the most vulnerable in California's workforce. 2)Background. In 2014, the Labor Commissioner's Retaliation Complaints Investigation (RCI) unit accepted complaints alleging violations of 23 of the 45 laws relating to retaliation. Of the 3,800 complaints received that year, the unit accepted 1,874 for investigation. The others were rejected because they were deemed to be outside of the AB 2261 Page 3 jurisdiction of the Labor Commissioner. Cases accepted by the RCI unit have increased by 48 percent from 2011 to 2014. In acknowledgement of the increase in retaliation claims, the Governor's current budget proposal requests 19.5 additional positions for the Labor Commissioner's Retaliation Complaints Investigation (RCI) unit. The Assembly budget subcommittee approved this request on April 12, 2016. 3)Opposition. Opposition, including the California Chamber of Commerce, are concerned the bill eliminates existing procedures and time limitations set forth in existing law relative to retaliation claims. They are concerned the bill subjects employers to a constant threat of citation, investigation or litigation for alleged discrimination and retaliation. Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081