BILL ANALYSIS Ó
AB 2437
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 2437
(Ting) - As Proposed to be Amended April 20, 2016
SUBJECT: Barbering and cosmetology: workplace notice
SUMMARY: Establishes a workplace notice requirement for
barbering and cosmetology establishments regarding workplace
rights, as specified. Specifically, this bill:
1)Requires the Labor Commissioner, by June 1, 2017, to develop a
model notice pertaining to workplace rights and wage and hour
laws for employees of establishments licensed under the Board
of Barbering and Cosmetology.
2)Specifies that the model notice shall include, but not be
limited to, information on the following:
a) Misclassification of an employee as an independent
contractor.
b) Wage and hour laws, including, but not limited to,
minimum wage, overtime compensation, meal periods, and rest
periods.
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c) Tip or gratuity distribution.
d) How to report violations of the law.
e) Business expense reimbursement.
f) Protection from retaliation.
3)Requires the model notice to contain clear and concise
language and be accessible on the Labor Commissioner's website
so that it is reasonably accessible.
4)Authorizes the Labor Commissioner to consult with the Board of
Barbering and Cosmetology in providing the model notice in
additional languages.
5)Beginning July 1, 2017, requires establishments licensed under
the Board of Barbering and Cosmetology, upon availability of
the model notice prepared by the Labor Commissioner, to post
the model notice in a conspicuous location in clear view of
employees, where similar notices are customarily posted.
6)Authorizes the Board of Barbering and Cosmetology to inspect
establishments for compliance with the model notice posting
requirement.
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EXISTING LAW:
1)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.
2)Establishes 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.
FISCAL EFFECT: Unknown
COMMENTS: According to the author, the purpose of this bill is
to ensure that certain employers, particularly nail salon
establishments, and their workers understand existing labor
laws. Although the primary focus of the bill is nail salons,
the workplace posting requirement will apply to all
establishments licensed by the Board of Barbering and
Cosmetology.
According to the author, there are approximately 8,000 nail
salons operating in California with over 95,000 licensed nail
salon workers, the majority of whom are women of color. An
estimated 80 percent of nail salon workers and owners throughout
the state are Vietnamese immigrant women who often have limited
English proficiency. According to the California Healthy Nail
Salon Collaborative, the annual income of many nail salon
workers is less than $18,200. Nail salon workers frequently
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earn less than minimum wage while working long hours without
overtime or regular meal or rest breaks. Additionally, many do
not receive worker's compensation, unemployment benefits,
disability or social security.
Due to language and cultural barriers among nail salon owners
and employees, there remains persistent confusion about
workplace law. According to the author, this community's unique
but pervasive problems require innovative solutions.
In recent years, concern has been expressed that many nail salon
workers are commonly misclassified as independent contractors
instead of employees. As discussed in the August 26, 2015
informational hearing convened by the Assembly Select Committees
on Women in the Workplace and Girls and Women of Color and the
Assembly Committees on Business and Professions, Health and
Labor and Employment, "Labor Practices Affecting Nail
Technicians and the Health and Safety of Nail Salons in
California", workers and owners, alike, are often unaware of the
difference in classification and other labor laws and rights to
which workers are entitled. In September 2011, a class action
lawsuit was filed on behalf of 125 nail salon workers against a
nail salon chain in San Mateo County. The complaint alleged
various labor violations including not paying overtime, taking
an employee's tips, not providing meal and rest breaks and
prohibiting employees from speaking Vietnamese in the workplace.
The case was settled and the chain made improvements and
adjusted their employment practices. However, this case
illuminates the need for more education on labor laws as these
violations are common across the nail salon industry.
Worker advocates contend that in many low-wage industries,
employers who disregard the law face few consequences, if any.
This includes nail salons that do not comply with wage and hour
laws, such as paying their employees overtime and ensuring meal
and rest breaks. By disregarding the law, these unscrupulous
nail salons are able to lower prices. This conduct harms the
employee, who is a victim of wage theft, and law-abiding
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employers which are unable to compete.
COMMITTEE STAFF COMMENT
The March 31, 2016 version of this bill required an
establishment providing nail care services and licensed by the
Board of Barbering and Cosmetology to register with the Division
of Labor Standards Enforcement (DLSE) and receive specified
training regarding workplace rights and wage and hour laws. The
bill required DLSE to provide the training to establishments and
their employees and authorized DLSE to contract with nonprofit
vendors to perform that training, among other requirements.
However, the Assembly Committee on Business and Professions
(which was scheduled to hear this bill before this committee)
raised a number of concerns with the language contained in that
version of the bill. That committee requested amendments that
would instead establish a workplace notice requirement for
establishments licensed by the Board of Barbering and
Cosmetology. Due to time constraints, the author agreed that
those amendments would be adopted in this committee. Therefore,
should the bill pass this committee, it will be reported out
with the amendments that are reflected in this analysis.
REGISTERED SUPPORT / OPPOSITION:
Support
Asian Americans Advancing Justice-California
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Community Health for Asian Americans
Opposition
None on file.
Analysis Prepared by:Taylor Jackson/Ben Ebbink / L. & E. / (916)
319-2091