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