BILL ANALYSIS Ó
AB 2437
Page 1
Date of Hearing: May 11, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2437 (Ting) - As Amended April 25, 2016
-----------------------------------------------------------------
|Policy |Business and Professions |Vote:|10 - 2 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| |Labor and Employment | |5 - 1 |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY: This bill 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)Requires the model notice to include, but not be limited to,
AB 2437
Page 2
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.
c) Tip or gratuity distribution, how to report violations
of the law, business expense reimbursement, and 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
AB 2437
Page 3
requirement.
FISCAL EFFECT:
1)Minor and absorbable cost to the Division of Labor Standards
Enforcement within the Department of Industrial Relations.
2)Minor and absorbable costs to the Board of Barbering and
Cosmetology.
COMMENTS:
1)Purpose. 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.
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.
2)Background. The Board of Barbering and Cosmetology is
responsible for licensing and regulating barbers,
cosmetologists, estheticians, electrologists, manicurists,
apprentices and approximately 41,000 establishments, including
nail salons, barbershops and hair salons. According to the
author, there are approximately 8,000 nail salons operating in
AB 2437
Page 4
California with over 95,000 licensed nail salon workers, the
majority of whom are women of color. An estimated 80% 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 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.
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.
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.
AB 2437
Page 5
3)Related Legislation.
a) AB 2025 (Gonzalez), among other provisions, requires the
Board of Barbering and Cosmetology (Board), as a condition
of issuing an establishment license, to ensure that the
applicant has knowledge of basic labor laws pertaining to
the individuals who work in establishments.
b) AB 2125 (Chiu) requires the California Department of
Public Health (CDPH) to publish guidelines and model
ordinances to assist local jurisdictions to voluntarily
adopt local "Healthy Nail Salon" recognition programs.
This bill is pending on this Committee's Suspense File.
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081