BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON
          BUSINESS, PROFESSIONS AND ECONOMIC DEVELOPMENT
                              Senator Jerry Hill, Chair
                                2015 - 2016  Regular 

          Bill No:            AB 2437         Hearing Date:    June 20,  
          2016
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          |Author:   |Ting                                                  |
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          |Version:  |April 25, 2016                                        |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Sarah Mason                                           |
          |:         |                                                      |
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           Subject:  Barbering and cosmetology:  establishments:  posting  
                                       notice


          SUMMARY:  Requires an establishment licensed by the Board of  
          Barbering and Cosmetology (BBC), on and after July 1, 2017, to  
          post a model notice pertaining to workplace rights and wage and  
          hour laws, developed by the Chief of the Division of Labor  
          Standards Enforcement (Labor Commissioner), and requires the BBC  
          to inspect for compliance of the posting requirement.    
          
          Existing law:
          
          1) Provides for the licensure regulation of the practice of  
             barbering, cosmetology and electrolysis under Act by the BBC.  
              (Business and Professions Code (BPC) § 7300 et. seq.)

          2) Defines "establishment" as any premises, building or part of  
             a building where any activity licensed under the Act is  
             practiced and sets forth requirements for licensure as an  
             establishment by BBC.  (BPC §§ 7346-7352)

          3) Requires operators' licenses to be conspicuously posted at  
             their primary work stations and requires establishment  
             licenses to be conspicuously posted in the reception areas.   
             (16 California Code of Regulations 965)

          4) Requires BBC to maintain a program of random and targeted  
             inspections of establishments to ensure compliance with  







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             applicable laws relating to the public health and safety and  
             the conduct and operation of establishments.  (BPC § 7353)

          5) Requires licensees to report to BBC upon renewal, including:   
             (BPC § 7401)

             a)   License status, defined as either practicing full time  
               in the state, practicing full time in another state,  
               practicing part-time in the state, not working in the  
               industry, retired or other practice that BBC defines.

             b)   Identification as either an employee, independent  
               contractor, booth renter or salon owner.

             c)   For establishments, whether a booth renter is operating  
               in the establishment or whether an independent contractor  
               is operating in the establishment.

          1) Provides that failure to display a license or health and  
             safety rules and regulations in a conspicuous place is  
             grounds for disciplinary action by BBC.  (BPC § 7404)

          2) Establishes the Dymally-Alatorre Bilingual Services Act  
             (Dymally-Alatorre) which requires each state agency to  
             conduct a survey, related to its bilingual services, of each  
             of its statewide offices which render services to the public  
             every two years to determine specified information, and to  
             report results and any additional information requested to  
             the California Department of Human Resources (CalHR).   
             Requires the survey to contain a detailed description of  
             complaints regarding language access received by the agency.   
             Dymally-Alatorre also requires each agency that serves a  
             substantial number of non-English-speaking people who  
             comprise 5% or more of the people served to develop an  
             implementation plan, as specified, in every odd-numbered  
             year, and to submit the implementation plan to the department  
             for its review.  Additionally, Dymally-Alatorre requires  
             CalHR, if it determines that a state agency has not made  
             reasonable progress toward complying with the Act, to issue  
             orders that it deems appropriate to effectuate the purposes  
             of Dymally-Alatorre.  (Government Code Section 7290 et seq.)

          3) Establishes the Division of Labor Standards Enforcement  
             (DLSE) and grants the Chief of DLSE (Labor Commissioner) and  








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             his or her employees free access to all places of labor.   
             States that any person, or agent or officer thereof, who  
             refuses admission to the Labor Commissioner or deputy or  
             agent or who, upon request, willfully neglects or refuses to  
             furnish them any statistics or information, pertaining to  
             their lawful duties is guilty of a misdemeanor, punishable by  
             a fine of not more than one thousand dollars ($1,000).   
             (Labor (LAB) Code §§ 83 and 90)

          4) States the policy of this state to vigorously enforce minimum  
             labor standards in order to ensure employees are not required  
             or permitted to work under substandard unlawful conditions or  
             for employers that have not secured the payment of  
             compensation, and to protect employers who comply with the  
             law from those who attempt to gain a competitive advantage at  
             the expense of their workers by failing to comply with  
             minimum labor standards.  Requires the Labor Commissioner to  
             adopt an enforcement plan for the field enforcement unit  
             which shall identify priorities for investigations to be  
             undertaken by the unit that ensure the available resources  
             will be concentrated in industries, occupations, and areas in  
             which employees are relatively low paid and unskilled, and  
             those in which there has been a history of violations and  
             those with high rates of noncompliance with the law.  (LAB §  
             90.5)

          5) Authorizes the Labor Commissioner, after investigation and  
             upon determination that wages or monetary benefits are due  
             and unpaid to any worker in the State of California, to  
             collect such wages or benefits on behalf of the worker  
             without assignment of such wages or benefits to the  
             Commissioner.  (LAB § 96.7)

          6) Authorizes the Labor Commissioner to investigate employee  
             complaints and provide for a hearing in any action to recover  
             wages, penalties, and other demands for compensation.  (LAB §  
             98)

          7) Prohibits an employer or agent from collecting, taking, or  
             receiving any gratuity or a part thereof that is paid, given  
             to, or left for an employee by a patron, or deduct any amount  
             from wages due an employee on account of a gratuity, or  
             require an employee to credit the amount, or any part  
             thereof, of a gratuity against and as a part of the wages due  








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             the employee from the employer. Provides that every gratuity  
             is hereby declared to be the sole property of the employee or  
             employees to whom it was paid, given, or left for.  Requires  
             an employer that permits patrons to pay gratuities by credit  
             card to pay the employees the full amount of the gratuity  
             that the patron indicated on the credit card slip, without  
             any deductions for any credit card payment processing fees or  
             costs that may be charged to the employer by the credit card  
             company.  Provides that payment of gratuities made by patrons  
             using credit cards shall be made to the employees not later  
             than the next regular payday following the date the patron  
             authorized the credit card payment.  (LAB § 351)

          8) Requires, at the time of hiring, an employer to provide each  
             employee a written notice, in the language the employer  
             normally uses to communicate employment-related information  
             to the employee, containing information about the rate or  
             rates of pay.  (LAB § 2810.5)

          9) Requires employers in California to post information related  
             to wages, hours and working conditions in an area frequented  
             by employees where the information may be easily read during  
             the workday.  Requires health and safety information posting  
             in certain workplaces.  


          This bill:

          1) Requires the Labor Commissioner, on or before June 1, 2017,  
             to develop a model notice pertaining to workplace rights and  
             wage and hour laws for employees of BBC licensed  
             establishments.  Requires the model posting notice to contain  
             clear and concise language and to be accessible on the Labor  
             Commissioner's website so that it is reasonably accessible to  
             BBC licensed establishments.  Authorizes the Labor  
             Commissioner to consult with BBC in providing the model  
             posting notice in additional languages other than English.

          2) Requires the model posting notice to include, but not be  
             limited to, the following:

             a)   Misclassification of an employee as an independent  
               contractor;









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             b)   Wage and hour laws, including, but not limited to,  
               minimum wage, overtime compensation, meal periods, and rest  
               periods;

             c)   Tip or gratuity distribution;

             d)   How to report violations of the law;

             e)   Business expense reimbursement and;

             f)   Protection from retaliation.

          1) Requires a BBC licensed establishment, on and after July 1,  
             2017, to post the model notice developed by the Labor  
             Commissioner in a conspicuous location in clear view of  
             employees and where similar notices are customarily posted.

          2) Requires BBC to inspect for compliance with this posting  
             requirement when it conducts inspections.  Clarifies that a  
             violation of the notice requirement is punishable by an  
             administrative fine rather than a misdemeanor.  

          
          FISCAL EFFECT:  This bill is keyed "fiscal" by Legislative  
          Counsel.  According to the Assembly Committee on Appropriations  
          analysis dated May 11, 2016, the bill will result in minor and  
          absorbable costs to DLSE and minor and absorbable costs to BBC.
          
          
          COMMENTS:
          
          1. Purpose.   Asian Americans Advancing Justice  and  Community  
             Health for Asian Americans  are the sponsors of this bill.   
             According to the Author, "workers in nail salons, i.e., 'nail  
             salon technicians' have complained about being misclassified  
             as 'independent contractors' when they are clearly employees  
             of a salon and others complain about being denied rest or  
             meal periods.  Worse, there is an inherent fear of  
             retaliation if a worker reports any violation of labor laws."  
              

          2. BBC Establishment Inspections.  BBC is responsible for  
             licensing and regulating barbers, cosmetologists,  
             estheticians, electrologists, manicurists, apprentices, and  








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             establishments.  The BBC licenses and regulates over 550,000  
             licensees, including over 52,000 establishments.  To ensure  
             compliance with the BBC's health and safety and licensing  
             regulations, random and targeted inspections of  
             establishments are conducted.  BBC does not consider labor  
             standards or labor practices during its inspections.  

             BBC reported the following inspection and citation/fine  
             information to this Committee during the sunset review  
             oversight of BBC in 2014-15.  According to BBC, the most  
             common violations that result in a citation are related to  
             health and safety.  


           ------------------------------------------------- 
          |            |    FY    | | FY 2012-13 |    FY    |
          |            | 2011-12  | |            | 2013-14  |
           ------------------------------------------------- 
          |------------+----------+-+------------+-----------|
          |Establishmen|  14,012  | |   11,580   |  11,979   |
          |     ts     |          | |            |           |
          | Inspected  |          | |            |           |
          |------------+----------+-+------------+-----------|
          | Citations  |  10,543  | |   8,977    |   8,257   |
          | Issued to  |          | |            |           |
          |Establishmen|          | |            |           |
          |     ts     |          | |            |           |
          |------------+----------+-+------------+-----------|
          | Citations  |  7,683   | |   6,291    |   6,452   |
          | Issued to  |          | |            |           |
          |Individuals |          | |            |           |
          |------------+----------+-+------------+-----------|
          |   Total    |  18,234  | |   15,268   |  14,709   |
          | Citations  |          | |            |           |
          |   Issued   |          | |            |           |
          |------------+----------+-+------------+-----------|
          |Establishmen|  2,863   | |   2,051    |3,046      |
          | ts with No |          | |            |           |
          | Violations |          | |            |           |
          |   Cited    |          | |            |           |
           -------------------------------------------------- 

          
          3. Concerns About Nail Salons and Experiences of Nail Salon  








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             Employees.  Nail salons have been the focus of studies and  
             media reports in recent years stemming from health, safety  
             and labor concerns in these settings.  In May 2015, the New  
             York Times (NYT) published two articles stemming from  
             interviews with more than 150 nail salon workers and owners  
             that found that a cast majority of workers are paid below  
             minimum wage and are sometimes not even paid.  The articles  
             found that workers "endure all manner of humiliation,  
             including having their tips docked as punishment for minor  
             transgressions, constant video monitoring by owners, even  
             physical abuse."  The NYT also found that employers are  
             rarely punished for labor and other violations and that in  
             2014, when the New York State Labor Department conducted its  
             first nail salon sweep, investigators inspected 29 salons and  
             found 116 wage violations.  While only about a quarter of the  
             more than 100 workers said they were paid an amount  
             equivalent to that state's minimum hourly wage, all but three  
             said they had wages withheld in ways considered illegal, such  
             as never getting overtime and many were unaware that working  
             unpaid was against the law and their alarmingly low wages are  
             also illegal.  
            
             A February 2016 follow up report in the NYT articles found  
             that 40 percent of the salons inspected, as part of the Labor  
             Department's increased efforts to inspect following the  
             original May articles, underpaid employees, including one  
             worker at a Manhattan salon who was paid $30 a day for  
             10-hour shifts, a manicurist in Queens who was paid only $200  
             for a 50-hour workweek, manicurists at seven salons who were  
             forced to work for no pay or had to pay salon owners a fee,  
             ostensibly to learn the trade and several owners admitted to  
             submitting fake payroll records in an effort to fool  
             investigators.  The article highlighted that employers are  
             often unfamiliar with the intricacies of state labor laws. 

             On August 26, 2015, the Assembly Select Committee on Women in  
             the Workplace, the Assembly Select Committee on Girls and  
             Women of Color, and the Assembly Committees on Health,  
             Business and Professions, and Labor held a joint  
             informational hearing titled "Labor Practices, Health, and  
             Safety in California Nail Salons."  The purpose of the  
             hearing was to obtain information, address concerns, and  
             discuss policy recommendations regarding nail salon practices  
             from state agencies, advocates, and industry.  








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             The Author notes that nail salon owners have expressed that  
             they are oftentimes unaware of labor laws and that perhaps  
             training is in order.  The measure would set forth  
             requirements for all BBC establishments, including nail  
             salons.
          
          4. Wages and Tips.  In 2008, the Ford Foundation sponsored a  
             survey of 4,387 workers in low-wage industries in the three  
             largest U.S. cities: Chicago, Los Angeles and New York City.   
             The report of that survey, titled Broken Laws, Unprotected  
             Workers: Violations of Employment and Labor Laws in America's  
             Cities, revealed that 26 percent of workers in the sample  
             were paid less than the legally required minimum wage the  
             prior work week, and 60 percent of these workers were  
             underpaid by more than $1 per hour.  In addition, 76 percent  
             of the respondents who worked overtime in the previous week  
             were not paid the legally required overtime rate by their  
             employers.

             The study also notes that minimum wage violation rates vary  
             significantly by industry, and occupation.  For example, some  
             industries, such as apparel and textile manufacturing and  
             personal and repair services have minimum wage violation  
             rates that exceed 40 percent, while others, including  
             restaurants, and retail and grocery stores, have rates of 20  
             to 25 percent.  However, the study found that undocumented  
             immigrant women were at the greatest risk of minimum wage  
             violations.  The study estimated that the workers in low-wage  
             industries Chicago, Los Angeles, and New York City lose more  
             than $56.4 million per week due to labor law violations.

             A follow-up study by the UCLA Institute for Research and  
             Labor and Employment was published in 2015, and that study  
             utilized the data from the 2008 survey, but focused  
             specifically on Los Angeles County.  This study, titled Wage  
             Theft and Workplace Violations in Los Angeles: The Failure of  
             Employment and Labor Law for Low-Wage Workers focused on a  
             survey results of 1,815 workers in Los Angeles County.  

             This study found similar results to the national survey:  
             almost 30 percent of the workers sampled were paid less than  
             the minimum wage in the prior work week, and 63.3 percent of  
             these workers were underpaid by more than $1 per hour.   








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             Assuming a full-year work schedule, Los Angeles County survey  
             respondents lost an average of $2,070.00 annually out of  
             total earnings of $16,536.00.  The study estimated that  
             workers in low-wage industries in Los Angeles County lose  
             more than $26.2 million per week as a result of employment  
             and labor law violations.

             Both of the studies make the same public policy  
             recommendations to address these issues, which included  
             strengthening government enforcement of existing employment  
             and labor laws and stiffening the penalties.

             The low rate of collections of wages has also been evaluated.  
              According to a 2013 report published by the National  
             Employment Law Project (NELP) and the UCLA Labor Center, only  
             17 percent of workers who prevailed in their wage claims  
             before the DLSE and won a judgment were able to receive any  
             payment between 2008 and 2011.  Of those who did receive  
             payment between 2008 and 2011, workers were able to collect  
             15 percent of what was owed.  In short, the vast majority of  
             wage theft victims received nothing, and those that received  
             anything received little of what they were legally due.

             Tips withheld by nail salon employers was highlighted in the  
             New York Times series.  According to the Internal Revenue  
             Service, tips are discretionary (optional or extra) payments  
             determined by a customer that employees receive from  
             customers.  Tips include cash tips received directly from  
             customers, tips from customers who leave a tip through  
             electronic settlement or payment (including a credit card,  
             debit card, gift card, or any other electronic payment  
             method), the value of any noncash tips, such as tickets, or  
             other items of value and tip amounts received from other  
             employees paid out through tip pools or tip splitting, or  
             other formal or informal tip sharing arrangement.  All cash  
             and non-cash tips an employee receives are income and are  
             subject to Federal income taxes.  All cash tips received by  
             an employee in any calendar month are subject to social  
             security and Medicare taxes and must be reported to the  
             employer, unless the tips received by the employee during a  
             single calendar month while working for the employer total  
             less than $20.  Cash tips include tips received from  
             customers, charged tips (e.g., credit and debit card charges)  
             distributed to the employee by his or her employer, and tips  








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             received from other employees under any tip-sharing  
             arrangement.  
            
             According to the United States Department of Labor (USDL),  
             tipped employees are those who customarily and regularly  
             receive more than $30 per month in tips. Tips are the  
             property of the employee.  The employer is prohibited from  
             using an employee's tips for any reason other than as a  
             credit against its minimum wage obligation to the employee  
             ("tip credit") or in furtherance of a valid tip pool.   
             Employers electing to use the tip credit provision must be  
             able to show that tipped employees receive at least the  
             minimum wage when direct (or cash) wages and the tip credit  
             amount are combined.  If an employee's tips combined with the  
             employer's direct (or cash) wages of at least $2.13 per hour  
             do not equal the minimum hourly wage of $7.25 per hour, the  
             employer must make up the difference.  USDL notes that a tip  
             is the sole property of the tipped employee regardless of  
             whether the employer takes a tip credit and that the Fair  
             Labor Standards Act (FLSA) prohibits any arrangement between  
             the employer and the tipped employee whereby any part of the  
             tip received becomes the property of the employer.  For  
             example, even where a tipped employee receives at least $7.25  
             per hour in wages directly from the employer, the employee  
                                      may not be required to turn over his or her tips to the  
             employer.

          5. Current Posting Requirements.  Employers in the state of  
             California are required to post information related to wages,  
             hours and working conditions, health and safety in an area  
             frequented by employees where the information may be easily  
             read during the workday as well as health and safety  
             information.  Specifically:

                       Personal services industry employers must post  
                  wage, hour and working conditions information contained  
                  in Wage Order #2 developed by the Industrial Welfare  
                  Commission. 

                       All employers must post information outlining  
                  California's minimum wage.

                       All employers must post information about paid  
                  sick leave entitlement and usage.








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                       All employers must post information about regular  
                  paydays and the time and place of payment. 

                       All employers must post information about basic  
                  requirements and procedures for compliance with the  
                  state's job safety and health laws and regulations.

                       All employers must post information listing  
                  emergency responders' phone numbers.

                       All employers must post information advising  
                  employees of workers' compensation benefits for injuries  
                  caused by their work, including the name of the  
                  employer's current compensation insurance carrier or the  
                  fact that the employer is self-insured.

                       All employers must post information about employee  
                  rights and responsibilities under state whistleblower  
                  laws.

                       All employers must post information designating  
                  where smoking is prohibited/permitted in a place of  
                  employment.

                       All employers must post information about  
                  prohibitions on discrimination and harassment in  
                  employment.

                       All employers of 5 to 49 employees must post  
                  information about pregnancy disability leave.

                       All employers with 50 or more employees must post  
                  information about family care and medical leave and  
                  pregnancy disability leave.

                       All employers must post information advising  
                  employees of potential unemployment insurance,  
                  disability insurance and paid family leave insurance  
                  benefits.

                       All employers must post information, not less than  
                  10 days before every statewide election, of availability  
                  of time off to vote.








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                       All employers must post equal employment  
                  opportunity information obtained from the U.S. Equal  
                  Employment Opportunity Commission, including an  
                  Americans with Disabilities Act poster.

                       All employers must post information about minimum  
                  wage pursuant to the FLSA.

          1. Government Agency Efforts to Serve California's LEP  
             Population and Challenges Faced by BBC.  The 2010 U.S. Census  
             found that more than 
          6.5 million residents of California, one out of every five,  
             speak English "less than very well."  Over 44 percent of  
             Californians speak a language other than English at home.  
             
             Dymally-Alatorre ensures that all California residents,  
             including those who are limited English proficient (LEP),  
             have equal access to public services. Dymally-Alatorre  
             requires every state and local agency to have a sufficient  
             number of qualified bilingual staff and translated written  
             materials so that the LEP population they serve are able to  
             effectively access and communicate with government.   
             Dymally-Alatorre became law in 1973 with the Legislative  
             intent of ensuring people are not precluded from accessing  
             public services because of language barriers.  It requires  
             agencies to provide the same information that is available in  
             English in other languages if the agency services a  
             "substantial number" of non-English speakers.  To determine  
             which languages must be included under the defined threshold,  
             agencies are required to conduct surveys every other year to  
             assess their contact with non-English speakers.  Then, they  
             must create or update implementation plans to ensure  
             compliance and submit them to CalHR.  BBC, as a state agency,  
             is currently subject to requirements under Dymally-Alatorre. 

             Stakeholders have weighed in at BBC meetings and to the  
             Legislature during the sunset review oversight of BBC  
             highlighting concerns with the BBC inspection process,  
             especially as it pertains to language barriers.  BBC  
             regulates a very diverse population, which includes many LEP  
             individuals who cannot always understand English-language  
             inspection forms or are met with communication problems  
             during an inspection.  BBC has not historically had a  








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             standardized protocol or systematic process for inspectors  
             when they encounter potential language barriers, which has  
             been a factor in complications during the inspection process  
             as well as dissatisfactory outcomes for licensees.  

             During its last sunset review oversight in 2014-15, BBC noted  
             that it made language access one of its priorities.  To that  
             end, BBC has translated all of its documents into Vietnamese,  
             Spanish, and Korean, including complaint forms.  In April  
             2014, the BBC reported that it established a separate link on  
             its website for the Vietnamese-speaking community which  
             includes 42 fact sheets that have been translated into  
             Vietnamese.  In June 2014, links were created for the  
             Spanish-speaking community and the Korean-speaking community.  
              The fact sheet topics range from "what to expect during an  
             inspection" to "industry advisory notices."   In addition,  
             the inspection report was translated into Vietnamese so that  
             inspectors can provide a handout of the report that indicates  
             the violations found so that the licensee has the option to  
             read these violations in his or her first language.  

             BBC has held Town Hall meetings for Vietnamese-speaking  
             licensees with the intention of providing licensees  
             opportunities to learn about the most common violations found  
             in establishments, the inspection process, and the citation  
             appeal process.  In August 2014, the BBC added an insert to  
             all citations that states if the recipient of the citation  
             needs assistance in understanding the citation, to call the  
             Cite and Fine Unit and he or she will be connected with an  
             interpreter.  BBC reported that it is also working with the  
             Department of Consumer Affairs to provide training to  
             inspectors; inspectors have been trained in cultural  
             diversity and procedures for handling hostile situations and  
             in October 2014, they were slated to receive tactical verbal  
             training.  In its responses to sunset review, BBC indicated  
             that effective May 1, 2015, BBC would issue all citations to  
             all manicurists and establishments cited for manicuring  
             violations in English and Vietnamese and would be developing  
             a protocol for inspectors as means of assisting in the  
             process of inspecting establishments with LEP licensees.

          2. Booth Renters.  A BBC licensee who performs beautification  
             services may own his or her own business or work for someone  
             else at their shop.  Licensees may be directly employed by an  








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             establishment or may be an independent contractor.  The  
             industry designation for independent contractors in BBC  
             licensed establishments is "booth renter".
             
             "Booth renters" are licensed professionals who may not own an  
             establishment but rent space from an owner.  A booth renter,  
             or independent contractor, is a practitioner who qualifies as  
             an independent contractor under California tax law and who is  
             not under the control and direction of a licensed  
             establishment.  Booth renters or independent contractors pay  
             their own worker's compensation insurance and taxes, maintain  
             their own business license, establish their own work  
             schedules and have access to the establishment at any time.   
             The booth renter is considered a separate business entity  
             operating within the establishment.

          3. Related Legislation This Year.    AB 2025  (Gonzalez) updates  
             the Barbering and Cosmetology Act (Act) to ensure that the  
             Board of Barbering and Cosmetology (BBC) offers all written  
             materials provided to licensees and applicants in English,  
             Spanish and Vietnamese; that the BBC provides practitioner  
             and establishment applicants with information about basic  
             labor laws and; that the BBC includes basic labor law  
             information in health and safety curriculum taught in  
             BBC-approved schools.  (  Status:   The bill is pending in the  
             Senate.)

              AB 2125  (Chiu) requires the California Department of Public  
             Health (DPH) to develop and publish guidelines for local  
             governments to implement local healthy nail salon recognition  
             programs with specified criteria, including the use of less  
             toxic nail polishes and polish removers and improved  
             ventilation.  Requires DPH to develop awareness campaigns and  
             post specified information on its Internet Web site.  Permits  
             DPH to prioritize its outreach to counties with the greatest  
             number of nail salons.  (  Status:   The bill is pending in the  
             Senate Committee on Environmental Quality.)

              SB 1125  (Nguyen) requires BBC, for an establishment license,  
             if the establishment will offer nail care services, to  
             include a signed acknowledgement that an applicant  
             understands their responsibility to comply with any  
             applicable state labor laws and comply with the informational  
             materials BBC selects or develops related to basic labor  








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             laws.  (  Status:   The bill is pending in the Assembly  
             Committee on Business and Professions.) 
          
          4. Prior Related Legislation.   SB 549  (Correa) would have  
             authorized BBC to collect gender, language and ethnicity data  
             from new licensure applicants and renewal licenses and posted  
             certain information on the BBC's website.  (  Status:   The bill  
             was vetoed by Governor Schwarzenegger who wrote that "The  
             stated intent of this bill is based on the belief that the  
             collection of statistics on the gender, ethnicity, and  
             language preference of the Board of Barbering and Cosmetology  
             (Board) licensees will lead to improved working conditions.  
             Since that connection is specious at best, I do not believe  
             this is an area that requires micromanagement of the Board".)  
               
            
              AB 2689  (Tran) of 2008 would have established the Vietnamese  
             Nail Worker Information Act which would require manufacturers  
             and certain other persons that sell or use professional  
             use-only nail care products to prepare, translate and provide  
             material safety data sheets in Vietnamese to purchasers of  
             the products as well as licensed professional nail care  
             employees upon request.  (  Status:   The bill was held under  
             submission in the Assembly Committee on Appropriations.)

              AB 2449  (Correa, Chapter 316, Statutes of 2002) required BBC  
             licensees to provide certain, specified information to BBC  
             when they renew their license and required BBC to report back  
             to the Legislature on  the information they collect,  
             including the provisions outlined in BPC § 7401 above related  
             to booth renters.

              SB 1134  (Karnette) of 1999 would have established certain  
             contractual provisions to be entered into between  
             establishment owners and independent contractors (booth  
             renters) who were licensed by the then-Barbering and  
             Cosmetology Program and would have required the Program to  
             register all independent contractors and issue a certificate  
             of registration to be displayed where they work.  (  Status:    
             The bill was never heard in a policy committee of the  
             Assembly.)

              AB 1358  (Karnette) of 1993 would have specified that a booth  
             renter in the cosmetology industry is an employee and not an  








          AB 2437 (Ting)                                          Page 16  
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             independent contractor for purposes of unemployment  
             insurance, state disability insurance, employment  training  
             and personal income tax purposes according to certain  
             conditions.  (  Status:   The bill was vetoed by Governor Wilson  
             who indicated in his veto message that given the complexity  
             in the possible arrangements between salon owners and  
             cosmetologists, a case-by-case determination would seem to  
             make more sense.  These are small businesses that should have  
             the right to determine what arrangements would make their  
             business most economically feasible.)

          5. Arguments in Support.  Supporters believe that this bill will  
             help workers licensed by BBC to know about and advocate for  
             their rights in the workplace and help ensure that  
             establishment owners comply with California labor law.   
             Supporters note that due to language and cultural barriers  
             among nail salon owners and employees, there remains  
             persistent confusion about workplace law and state that this  
             bill will provide critical information that will allow  
             confused employers to assess and correct any employment  
             practices that violate labor law.   

          6. Proposed Author's Amendment.  In response to concerns that  
             materials provided by BBC to licensees may not always be  
             accessible to the BBC's LEP licensee population, the Author  
             would like to ensure that the model notice is available in  
             languages most frequently used by BBC licensees and  
             stakeholders.  
          
             BBC determines the languages, other than English, that are  
             most frequently used by licensees by tracking requests for  
             interpretation services.  Currently, BBC has identified  
             Spanish, Vietnamese and Korean as the languages, other than  
             English, most frequently used by licensees and stakeholders.   
             BBC is in the process of translating all written materials  
             into Spanish, Vietnamese and Korean.  To clarify that the  
             model notice proposed in this bill needs to be available in  
             the languages used by BBC licensees, and to strengthen the  
             Author's goal of having the notice developed in easily  
             understandable language, the Author has proposed the  
             following amendments:

             On page 4, in line 8, strike "contain clear and concise" and  
             replace with "be developed using plain"








          AB 2437 (Ting)                                          Page 17  
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             On page 4, in line 11, strike "The Labor" and strike lines  
             12-14 inclusive

             One page 4, after line 24, insert "(c) The model notice shall  
             be translated into Spanish, Vietnamese and Korean."
          
             
               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   be developed using plain  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.

                (c) The model notice shall be translated into Spanish,  
               Vietnamese and Korean.
          
           








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          SUPPORT AND OPPOSITION:
          
           Support:  

          Asian Americans Advancing Justice - California
          California Healthy Nail Salon Collaborative
          Community Health for Asian Americans


           Opposition:  

          None on file as of June 14, 2016.


                                      -- END --