BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1063  


                                                                    Page  1





          Date of Hearing:   June 29, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 1063  
          (Hall) - As Amended April 20, 2016


           ----------------------------------------------------------------- 
          |Policy       | Labor                         |Vote:| 5-1         |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill amends the Equal Pay Act to prohibit employers from  
          paying employees a wage rate less than the rate paid to  
          employees of a different race or ethnicity for substantially  
          similar work. 


          FISCAL EFFECT:


          Unknown, likely significant costs to the Department of  
          Industrial Relations (DIR) to process claims associated with  








                                                                    SB 1063  


                                                                    Page  2





          wage discrimination based on race or ethnicity.  


          The Division of Labor Standards and Enforcement (DLSE) does not  
          currently receive any pay discrimination claims on the basis of  
          race or ethnicity, making it difficult to predict costs  
          associated with this bill. DIR notes, however, that the  
          Department of Fair Employment and Housing (DFEH) received  
          roughly 6,500 claims in 2014 alleging employment discrimination  
          based on race. As a point of comparison, if DLSE received 1% of  
          the claims DFEH received, this would generate workload for DLSE  
          of approximately $600,000 (special fund) in the first year and  
          $570,000 (special fund) in subsequent years.   


          COMMENTS:


          1)Purpose. SB 358 (Jackson) Chapter 546, Statutes of 2015 made  
            various changes to the California Equal Pay Act related to  
            gender wage inequality. This bill adopts the same approach for  
            addressing wage discrimination based on race or ethnicity.  


            The California National Organization for Women (CA NOW) is  
            sponsoring this bill. Last year, CA NOW opposed SB 358 unless  
            it was amended to include protections for wage discrimination  
            for categories such as race, ethnicity, LGBTQ and disability  
            status.  According to the author, ideally, other protected  
            classes, such as members of the LGBTQ or disabled community  
            should be included in this bill, but the addition of race and  
            ethnicity begins the process of making pay equity in  
            California more inclusive. 


          2)Opposition. A coalition of employers, including the California  
            Chamber of Commerce, opposes this measure. They state that SB  
            358 just went into effect at the beginning of this year.  The  
            opposition believes that the Legislature should allow time for  








                                                                    SB 1063  


                                                                    Page  3





            employees, employers, and the courts to interpret and  
            implement the new boundaries of the equal pay law before  
            seeking to amend and expand it even further.  



          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081