BILL NUMBER: AB 2437	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 25, 2016
	AMENDED IN ASSEMBLY  MARCH 31, 2016

INTRODUCED BY   Assembly Member Ting

                        FEBRUARY 19, 2016

   An act to add  Sections 7401.1 and 7401.2  
Section 7353.4  to the Business and Professions Code, and to add
Section  238.6 to, and to add Part 10.5 (commencing with
Section 2268) to Division 2 of,   98.10 to  the
Labor Code, relating to  nail care establishments, and making
an appropriation therefor.   barbering and cosmetology.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 2437, as amended, Ting.  Nail care establishments:
training: wage violations.   Barbering and cosmetology:
establishments: posting notice. 
   (1) The Barbering and Cosmetology Act provides for the licensure
and regulation of barbers, cosmetologists, estheticians, manicurists,
electrologists, and apprentices by the State Board of Barbering and
Cosmetology. The act requires the licensure of any person, firm, or
corporation operating an establishment engaged in a practice
regulated by the board, as specified, and requires a licensed
establishment to comply with various requirements.  That act
requires the board to inspect an establishment   within 90
days after issuing the establishment a license and requires the board
to maintain a program of random and targeted inspections of
establishments, as specified.  A violation of the Barbering and
Cosmetology Act is  generally  a 
misdemeanor.   misdemeanor unless a specific  
penalty is otherwise provided.  
   Existing law prohibits an employer from continuing to conduct
business in this state, as specified, if a final judgment against
that employer arising from the employer's nonpayment of wages for
work performed in this state remains unsatisfied after a specified
period of time after the time to appeal has expired and no appeal is
pending, except as specified. 
   This bill would  require the State Board of Barbering and
Cosmetology to deny the renewal of a license to an establishment that
provides nail care services if that establishment is conducting
business in violation of the above provision regarding final
judgments arising from an employer's nonpayment of wages for work
performed in this state, and would require the board to verify with
the Labor Commissioner that such an establishment is not conducting
business in violation of those provisions. The bill would also
require the Labor Commissioner to notify the board if such an
establishment is conducting business in violation of those
provisions. The bill would authorize such an establishment to provide
evidence to the board that it is not conducting business in
violation of those provisions.   require, on and after
July 1, 2017, an establishment licensed by the board to post a
specified notice in a conspicuous location in clear view of employees
and where similar notices   are customarily posted. The
bill would require the board to inspect an establishment for
compliance with that requirement when it conducts the above-mentioned
inspecti   on   , and would provide that a
violation of that posting requirement is punishable as an
administrative fine. 
   (2) Existing law creates the Division of Labor Standards
Enforcement within the Department of Industrial Relations, and vests
the division with the general duty of enforcing labor laws, including
those relating to wage claims and employer retaliation. 
Existing law provides that the Labor Commissioner is the Chief of the
Division of Labor Standards Enforcement. 
   This bill would require  an establishment, which provides
nail care services and is required to be licensed as an establishment
under the Barbering and Cosmetology Act, to register with the
division and receive specified training regarding workplace rights
and wage and hour laws, including, but not limited to, overtime
compensation, and would also require the establishment to arrange for
the training to be provided to its employees. The bill would require
the division to provide that training to such an establishment and
its employees. The bill would authorize the division to contract with
nonprofit vendors to perform that training and would require the
division to consider certain factors when approving a nonprofit
vendor, including that the vendor has familiarity with the labor laws
to be discussed during the training. The bill would authorize the
division to charge a fee to each nail care establishment, not to
exceed the reasonable regulatory cost of providing the training, and
would require that fee to be deposited into the Nail Care
Establishment Training Fund, which would be created by this bill. The
bill would continuously appropriate the money in that fund solely
for the purposes of providing the required training. The bill would
also define various terms for these purposes.   the
Labor Commissioner, on or before June 1, 2017, to create a model
posting notice pertaining to the workplace rights   and wage
and hour laws for employees of establishments licensed under the
Barbering and Cosmetology Act. The bill would require the model
posting notice to contain clear and concise language and would
require the commissioner to post the notice on the commissioner's
Internet Web site, as specified. The bill would require the notice to
contain, at a minimum, certain information, including laws regarding
overtime compensation. The bill would authorize the commissioner to
consult with the Barbering and Cosmetology Board about providing the
notice in additional languages other than English. 
   Vote: majority. Appropriation:  yes  no 
. Fiscal committee: yes. State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 7353.4 is added to the 
 Business and Professions Code   , to read:  
   7353.4.  (a) On and after July 1, 2017, an establishment licensed
by the board shall, upon availability of the posting notice developed
by the Labor Commissioner pursuant to Section 98.10 of the Labor
Code, post that notice in a manner that complies with the
requirements of Section 98.10 of the Labor Code in a conspicuous
location in clear view of employees and where similar notices are
customarily posted.
   (b) The board shall inspect for compliance with this posting
requirement when it conducts an inspection pursuant to Section 7353.
   (c) A violation of this section shall be punished by an
administrative fine established pursuant to Section 7407 and shall
not be punished as a misdemeanor under Section 7404.1. 
   SEC. 2.    Section 98.10 is added to the  
Labor Code   ,  immediately following Section 98.9 
, to read:  
   98.10.  (a) On or before June 1, 2017, the Labor Commissioner
shall develop a model notice pertaining to workplace rights and wage
and hour laws for employees of establishments licensed under Chapter
10 (commencing with Section 7301) of Division 3 of the Business and
Professions Code. The model posting notice shall contain clear and
concise language and be accessible on the Labor Commissioner's
Internet Web site so that it is reasonably accessible to an
establishment that must comply with Section 7353.4 of the Business
and Professions Code. The Labor Commissioner may consult with the
Board of Barbering and Cosmetology in providing the model posting
notice in additional languages other than English.
   (b) The model notice shall include information, including, but not
limited to, all of the following:
   (1) Misclassification of an employee as an independent contractor.

   (2) Wage and hour laws, including, but not limited to, minimum
wage, overtime compensation, meal periods, and rest periods.
   (3) Tip or gratuity distribution.
   (4) How to report violations of the law.
   (5) Business expense reimbursement.
   (6) Protection from retaliation.  
  SECTION 1.    Section 7401.1 is added to the
Business and Professions Code, to read:
   7401.1.  (a) The board shall not renew the license of an
establishment that provides nail care services if it is conducting
business in violation of Section 238 of the Labor Code.
   (b) Before renewing the license of an establishment that provides
nail care services as defined in Section 7316, the board shall verify
with the Labor Commissioner whether that establishment is conducting
business in violation of Section 238 of the Labor Code.
   (c) An establishment that provides nail care services may
demonstrate to the board that is not conducting business in violation
of Section 238 of the Labor Code by providing evidence to the board.
 
  SEC. 2.    Section 7401.2 is added to the Business
and Professions Code, to read:
   7401.2.  The board shall not renew the establishment license of an
establishment that provides nail care services, as defined under
Section 7316, if the establishment and its employees have not
received the training required pursuant to Part 10.5 (commencing with
Section 2268) of the Labor Code.  
  SEC. 3.    Section 238.6 is added to the Labor
Code, to read:
   238.6.  (a) If an employer is an establishment that offers nail
care services and is required to obtain a license from the State
Board of Barbering and Cosmetology pursuant to Chapter 10 (commencing
with Section 7301) of Division 3 of the Business and Professions
Code is found to be conducting business in violation of Section 238,
the Labor Commissioner shall notify the State Board of Barbering and
Cosmetology that the establishment is conducting business in
violation of Section 238.
   (b) For the purposes of this section, "nail care services" means
the practice of cutting, trimming, polishing, coloring, tinting,
cleansing, manicuring, or pedicuring the nails of a person or
massaging, cleansing, or beautifying from the elbow to the fingertips
or the knee to the toes of a person.  
  SEC. 4.    Part 10.5 (commencing with Section
2268) is added to Division 2 of the Labor Code, to read:

      PART 10.5.  Nail Care Establishments


   2268.  For the purposes of this part, the following terms shall
have the following meanings:
   (a) "Division" means the Division of Labor Standards Enforcement.
   (b) "Establishment" means an establishment licensed under Chapter
10 (commencing with Section 7301) of Division 3 of the Business and
Professions Code that offers nail care services.
   (c) "License" means a license issued to an establishment under
Chapter 10 (commencing with Section 7301) of Division 3 of the
Business and Professions Code.
   (d) "Licensee" means an employee of an establishment who is
licensed under Chapter 10 (commencing with Section 7301) of Division
3 of the Business and Professions Code to perform nail care services.

   (e) "Nail care" means the practice of cutting, trimming,
polishing, coloring, tinting, cleansing, manicuring, or pedicuring
the nails of a person or massaging, cleansing, or beautifying from
the elbow to the fingertips or the knee to the toes of a person.
   2268.1.  (a) An establishment shall register with the division
pursuant to this part and receive the training required by this part
once every license renewal period. An establishment shall also
arrange for licensees employed at that establishment to receive the
required training from either the division under subdivision (b) or
from a nonprofit vendor under subdivision (c).
   (b) (1) By June 1, 2017, the division shall provide training to an
establishment and licensees employed at that establishment regarding
laws pertaining to workplace rights and wage and hour laws.
   (2) The training shall include, but not be limited to:
   (A) Misclassification of an employee as a contractor.
   (B) Wage and hour laws, such as minimum wage, overtime
compensation, meal periods, and rest breaks.
   (C) Protection for retaliation.
   (D) Business expense reimbursement.
   (E) Tip or gratuity distribution.
   (F) How to report violations of the law.
   (3) To the extent possible, the training shall be provided
separately to an establishment and licensees.
   (4) The training shall be provided in a culturally competent and
linguistically appropriate manner for the demographic groups that
work in the nail care industry.
   (c) (1) In lieu of providing training under subdivision (b), the
division may contract with an approved nonprofit vendor to provide
the training required by this section.
   (2) The division shall consider all of the following when
approving a nonprofit vendor to provide the training required by this
section:
   (A) The linguistic capabilities of the nonprofit vendor. The
nonprofit vendor shall have language capacity to conduct the training
in the languages of the demographic groups that work in the nail
care industry, including, but not limited to, Vietnamese.
   (B) The nonprofit vendor shall have a demonstrated history of
providing culturally competent services to the demographic groups
that work in the nail care industry, including, but not limited to,
the Vietnamese community.
   (C) The nonprofit vendor shall have familiarity with the laws to
be discussed in the training. The vendor may obtain this legal
expertise through other service providers, such as a nonprofit legal
service agency.
   (D) Any other criteria deemed appropriate by the division.
   (3) The nonprofit vendor shall not charge a fee to the attendees
of the training.
   2268.2.  (a) The division shall charge a fee to an establishment,
not to exceed the reasonable regulatory cost, for providing the
training under this part or for contracting out with an approved
nonprofit vendor to provide the training required under this part.
   (b) The fee shall be deposited into the Nail Care Establishment
Training Fund, which is hereby created. The fee shall only be used
for the purposes of providing the training required pursuant to this
part and, notwithstanding Section 13340 of the Government Code, is
continuously appropriated without regard to fiscal year solely for
these purposes.