BILL ANALYSIS Ó AB 2405 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2405 (Gatto) - As Amended April 13, 2016 ----------------------------------------------------------------- |Policy |Labor and Employment |Vote:|4 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires an employer to annually provide an employee at least 24 hours of paid, job-protected, time off for the purposes of an absence under the Family School Partnership Act (Act), unless otherwise provided in a collective bargaining AB 2405 Page 2 agreement. Specifically, this bill: 1)Authorizes, but no longer requires, an employee to use vacation or paid time off, or use unpaid time off, if available, when taking time off under these provisions. 2)Authorizes an employee whose request for time off is denied by the employer to file a complaint and seek remedy from the Division of Labor Standards Enforcement (DLSE). 3)Requires the Labor Commissioner to create a poster listing the protections available to employees and would require an employer to post it at the workplace, as specified. FISCAL EFFECT: 1)Unknown costs, likely in the millions of dollars annually, to provide three paid days off to employees of skilled nursing facilities. Assuming approximately 73% of workers in skilled nursing homes are eligible for this benefit, the state would incur costs of approximately $49 million (General Fund and Federal Funds) to cover this benefit. Under current law, the Department of Health Care Services is required to increase reimbursement rates to skilled nursing facilities to offset any additional costs mandated by the state or federal government. 2)Unknown, likely minor costs, for the Department of Industrial Relations (DIR) Division of Labor Standards Enforcement (DLSE) to process claims. DIR notes they receive very few retaliation claims (1 to 3 a year). It is unclear if changes made by this bill would generate significantly more claims for retaliation and wages. Existing law has anti-retaliation protections for AB 2405 Page 3 this activity and this bill does not expand the universe of employees eligible for this benefit. COMMENTS: 1)Purpose. The California School Partnership Act allows parents, grandparents, and guardians to take up to 40 hours per year to participate in their children's school or child care activities. The law is applicable to employers with 25 or more employees. Employees can use existing vacation, personal leave, compensatory time off or take unpaid leave for these purposes. According to the author, research shows parental involvement leads to substantial improvements in a child's academic performance. While most parents are aware of the benefits of parent engagement, not all have the ability to take unpaid leave to get involved. The author states this bill will strengthen existing law by requiring employees to be paid for up to 24 hours, of the authorized 40 hours of leave, for each calendar year. 2)Opposition. The California Chamber of Commerce is opposed to this bill. They state that, while mandating an employer to provide 24 hours of paid time off may seem minor in isolation, the cumulative impact of all the existing protected leaves of absence required in California that are both paid and unpaid must be taken into consideration. AB 2405 Page 4 3)Prior Related Legislation a) SB 579 (Jackson) Chapter 802, Statutes of 2015 expanded the authorized reasons for which an employee can take job-protected time off from work under the Family School Partnership Act and specified "kin care" sick leave provisions of existing law. b) AB 2030 (Campos) of 2014 would have provided that existing leave provided for school-related activities under the Act be fully paid by employers, as specified. The bill was never heard in committee. Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081