BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2532


                                                                    Page  1





          Date of Hearing:  April 20, 2016


                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT


                               Roger Hernández, Chair


          AB 2532  
          (Chiu) - As Introduced February 19, 2016


          SUBJECT:  Employment services:  verification


          SUMMARY:  


          1)Repeals the verification requirement of an individual's legal  
            status or authorization to work prior to providing employment  
            services by state or local government agency's or any private  
            organization contracting with the those agencies that provide  
            employment services. 


          2)Repeals the specified workplace posting requirement for  
            employment services being provided by the agencies.   


          EXISTING LAW: 


          1)Requires each state or local government agency or community  
            action agency, or any private organization contracting with a  
            state or local government agency, that provides specified  
            employment services to verify an individual's legal status or  
            authorization to work prior to providing services to that  
            individual in accordance with procedures established under  








                                                                    AB 2532


                                                                    Page  2





            federal law. 



          2)Specifies that proof of legal status or authorization to work  
            includes specified documents providing evidence of legal  
            residence or authorization to work in the United States.  It  
            also exempts employment services offered by school districts  
            under secondary school and adult education programs from  
            provisions requiring verification of an individual's legal  
            status or authorization to work prior to providing services. 



          3)Requires each state or local government agency or community  
            action agency, or any private organization contracting with a  
            state or local government agency, that provides specified  
            employment services to post in a prominent location in the  
            workplace a notice stating that only citizens or those persons  
            legally authorized to work in the United States will be  
            permitted to use the agency's or organization's employment  
            services that are funded by the federal or state government,  
            as specified.


          FISCAL EFFECT:  Unknown



          COMMENTS:   According to the Employment Development Department's  
          (EDD) website, California's workforce services, a part of the  
          United States (U.S.) Employment Service, is one of the world's  
          largest public employment service operations.  With service  
          points throughout the state, the EDD program serves the state's  
          employers and job seekers.  The nationwide U.S. Employment  
          Service was authorized by the federal Wagner Peyser Act (WPA) in  
          1933 and funded under Title III of the Social Security Act of  
          1935.  The WPA was amended by the Workforce Innovation and  
          Opportunity Act of 2014 to provide a foundation for the  








                                                                    AB 2532


                                                                    Page  3





          Workforce Services and other federal, state, and local workforce  
          development partners to offer services through the America's Job  
          Center of California (AJCC). 


          The AJCC's offer a variety of services that bring employers with  
          job openings together with qualified job seekers.  Customers may  
          access services through self-service or with the assistance of  
          staff.  The AJCC provides universal access to an integrated  
          array of labor exchange and Workforce Innovation and Opportunity  
          Act (WIOA) services so that workers, job seekers, and businesses  
          can find the services they need at any of the job centers.  The  
          AJCC serves the State's 900,000 employers and the more than a  
          million job seekers who use these services each year. 

          Currently, California law requires that EDD verify a job  
          seeker's legal status and authorization to work in the United  
          States prior to providing an employment-related service.  The  
          requirement applies to all employment service applicants,  
          whether or not they are U.S. citizens, temporary or resident  
          aliens, residing in or outside of California.


          Should this bill go into effect, under federal law, EDD would  
          still be required to ask each client to indicate eligibility to  
          work in the U.S. prior to providing job training and placement  
          services; however, it does not require agencies to verify an  
          individual's legal status to work prior to providing employment  
          services.  



          The Immigration Reform and Control Act (IRCA) of 1986 


          IRCA as passed in order to control and deter unlawful  
          immigration to the United States.  Its major provisions  
          stipulated legalization of undocumented persons who had been  
          continuously unlawfully present since 1982, legalization of  








                                                                    AB 2532


                                                                    Page  4





          certain agricultural workers, sanctions for employers who  
          knowingly hire undocumented workers, and increased enforcement  
          at U.S. borders.  IRCA required employers to attest to their  
          employees' immigration status, through the establishment of the  
          I-9 Form; IRCA made it illegal to hire or recruit undocumented  
          workers knowingly, among other things.  IRCA permits employers  
          to rely on a good faith belief in the proof of work  
          authorization an applicant offers.


          In general IRCA also states it is unlawful for a person or other  
          entity to hire, to recruit or refer for a fee, for employment in  
          the United States an unauthorized person knowing the person is  
          an unauthorized worker with respect to employment or without  
          complying with the verification requirements.  IRCA does not  
          require agencies to verify an individual's legal status to work  
          prior to providing employment services.  


          Arguments in Support

          The sponsor of this measure, the Mexican American Legal Defense  
          and Educational Fund (MALDEF), argues the two Unemployment  
          Insurance provisions (UIC) this bill repeals impose an  
          unnecessary and redundant burden on businesses providing  
          employment services.  Regulation of employment for immigrants is  
          already covered in federal law so any additional state  
          requirements place added costs on businesses.  They further  
          argue that by repealing the two UIC sections would do nothing to  
          change immigrant eligibility for any government services which  
          is regulated by other provisions of federal and state law. Nor  
          would the bill change the federal obligation that employers face  
          with respect to employment of authorized workers and the duty to  
          check work authorization of new hires.













                                                                    AB 2532


                                                                    Page  5





          








          REGISTERED SUPPORT / OPPOSITION:




          Support


          American Civil Liberties Union


          California Immigrant Policy Center


          Mexican American Legal Defense and Educational Fund (sponsor)




          Opposition


          None on file.




          Analysis Prepared by:Lorie Alvarez / L. & E. / (916) 319-2091










                                                                    AB 2532


                                                                    Page  6