BILL ANALYSIS                                                                                                                                                                                                    






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          |SENATE RULES COMMITTEE            |                       SB 1125|
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                                   THIRD READING 


          Bill No:  SB 1125
          Author:   Nguyen (R) 
          Amended:  3/28/16  
          Vote:     21 

           SENATE BUS, PROF. & ECON. DEV. COMMITTEE:  9-0, 4/18/16
           AYES:  Hill, Bates, Berryhill, Block, Galgiani, Hernandez,  
            Jackson, Mendoza, Wieckowski

           SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

           SUBJECT:   Employment relations:  nail care salons:  labor law  
                     compliance


          SOURCE:    Author

          DIGEST:   This bill requires the Board of Barbering and  
          Cosmetology (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 laws.  

          ANALYSIS:  
          
          Existing law:


          1) Provides for the licensure regulation of the practice of  
             barbering, cosmetology, and electrolysis under the Barbering  
             and Cosmetology Act (Act) by BBC.








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          2) Establishes nail care as a specialty branch in the practice  
             of cosmetology and defines nail care as the practice of  
             cutting, trimming, polishing, coloring, tinting, cleansing,  
             manicuring, or pedicuring the nails of any person or  
             massaging or beautifying from the elbow to the fingertips or  
             the knee to the toes of any person.  (Business and  
             Professions Code (BPC)  7316 (c) (2))


          3) 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)


          4) 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.  (Labor Code (LAB)  351)


          This bill 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 laws.  


          Background


          The author's district includes the largest number of Vietnamese  
          residents outside of Vietnam.  According to the author, in just  
          three of the 12 cities in the district, there are approximately  
          25,000 licensed cosmetologists.  The author believes that it is  
          important to be mindful of the cultural sensitivity around the  
          communication with nail salon workers whether it is in English  
          or Vietnamese and that sometimes basic labor laws can be  
          overlooked.  The author believes that having an establishment  







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          licensee sign an acknowledgement form will help with the overall  
          understanding of California's labor laws, thus helping to  
          reinforce that all help reinforce that all nail care  
          establishments are on the same page regarding state labor laws.


          Nail care in California.  Nail care is a specialty branch in the  
          field of cosmetology.  In California, a licensed cosmetologist  
          can practice nail care and BBC also licenses manicurists as a  
          separate license category.  To become a licensed manicurist, an  
          applicant must submit proof of completion to BBC of 400 training  
          hours training covering all practices of a manicurist.  BBC  
          currently licenses 126,872 manicurists, 310,041 cosmetologists  
          (whom can also perform nail care services) and 52,785  
          establishments.  BBC does not include information in its  
          establishment license data to differentiate between an  
          establishment offering nail care services specifically or those  
          offering other personal beautification services.


          Concerns about nail salons and experiences of nail salon  
          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 the 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  







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          40 percent of the salons inspected, as part of the Labor  
          Department's increased efforts to inspect following the original  
          May articles, had 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.




          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          SUPPORT:   (Verified5/4/16)




          Professional Beauty Federation of California




          OPPOSITION:   (Verified5/4/16)


          None received


          ARGUMENTS IN SUPPORT:     Supporters note that this bill seeks  
          to send a clear message to salon owners that they are legally  
          obligated to follow all applicable labor laws in their  
          operations and treatment of their employees.

          Prepared by:Sarah Mason / B., P. & E.D. / (916) 651-4104
          5/4/16 15:04:10









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