BILL ANALYSIS SENATE JUDICIARY COMMITTEE Adam B. Schiff, Chairman 1999-2000 Regular Session AB 1001 A Assembly Member Villaraigosa B As Amended May 28, 1999 Hearing Date: August 17, 1999 1 Government Code 0 DLM:jt 0 1 SUBJECT Fair Employment and Housing Act: Sexual Orientation DESCRIPTION This bill would move the provisions prohibiting employment discrimination on the basis of sexual orientation from the Labor Code to the Fair Employment and Housing Act (FEHA). The bill would also codify case law which prohibits housing discrimination on the basis of sexual orientation. BACKGROUND Labor Code Section 1102.1 prohibits employment discrimination based on actual or perceived sexual orientation. Employers with five or fewer employees and all non-profit organizations are exempt. The Department of Industrial Relations, Division of Labor Standards Enforcement investigates complaints arising under this section or complaints can be filed as a civil action in court. Claims must be filed within 30 days of the alleged incident. Remedies available include cease and desist orders, reinstatement, backpay and attorney's fees. The Department of Fair Employment and Housing (DFEH) investigates and adjudicates complaints arising under the Fair Employment and Housing Act (FEHA). Complaints must be filed within one year of the alleged incident. Remedies available for employment discrimination include cease and desist orders, reinstatement, actual damages up (more) AB 1001 (Villaraigosa) Page 2 to $50,000, affirmative or prospective relief, and an administrative fine. If a complainant or respondent is not satisfied with the administrative decision, or if DFEH issues the complainant a "right-to-sue" letter, the complainant can bring a civil action in court. The complainant cannot file a civil action without first exhausting FEHA's administrative remedies. (See Comment 3 for further comparison of Labor Code and FEHA remedies. CHANGES TO EXISTING LAW Existing law : Prohibits employment discrimination based on actual or perceived sexual orientation under the Labor Code. Prohibits through the Unruh Civil Rights Act, housing discrimination based on sexual orientation, Hubert v. Williams (1982) 133 Cal.App.3 Supp.1. Department of Fair Housing and Employment (DFEH) investigates complaints arising under this section under the rules relating to housing. This bill would: Amend the Fair Employment and Housing Act (FEHA) to include sexual orientation as a protected category against discrimination. Define "sexual orientation" as "heterosexuality, homosexuality, and bisexuality." Delete the prohibition on employment discrimination based on sexual orientation from the Labor Code. COMMENT 1. Stated need for legislation and support Supporters argue that the differences between the Labor Code and FEHA result in unequal protection against employment discrimination for gay, lesbian, and bisexual individuals. The differences they cite include the fact that all nonprofit organizations are exempted from Labor Code Section 1102.1 and only nonprofit religious AB 1001 (Villaraigosa) Page 3 organizations are exempted from FEHA. Also, there is the 30-day (Labor Code) versus one-year (FEHA) difference in the statutory period to file discrimination claims. Supporters argue that 30 days is too short a time in which to identify and act on discrimination, especially since the complainant may not immediately realize that discrimination has occurred. Also, in the case of ongoing violations, the 30-day deadline may mean that some violations cannot be considered as part of an overall case. Supporters also point to the extensive case law and established discrimination investigation guidelines for FEHA whereas, they claim, little such history exists interpreting Labor Code Section 1102.1. Also DFEH investigators are extensively trained in discrimination cases while Department of Industrial Relations (DIR) investigators, on the other hand, primarily handle whistleblowing cases, wage disputes, and health and safety complaints. As a result they are ill suited to handle this type of claim, they say. In addition, supporters state that employees and attorneys are not as aware of the Labor Code as they are of FEHA. For example, because it is not included in FEHA, sexual orientation is not listed as a protected category on the posters which employers are required to post in workplaces advising employees of their rights. Supporters also believe that, by eliminating the dual anti-discrimination statutes, this bill will prove less onerous to employers who might be confused by the different requirements contained in current law. The bill will also reduce confusion for employees subject to more than one form of discrimination, e.g. sexual orientation and race. Currently, these employees must file separate complaints with DIR and DFEH, subject to different deadlines, procedures, and remedies. In response to concerns about increased litigation if this bill passes, supporters point out that FEHA is designed to decrease litigation by requiring that DFEH investigate all complaints before a complainant can file a court action. Due to this requirement, it is actually easier for an employee to file a civil action under current law than under FEHA. Regardless of the ultimate AB 1001 (Villaraigosa) Page 4 impact of the bill on litigation, however, small businesses and religious organizations will not be affected because neither the Labor Code nor FEHA applies to small businesses or religious organizations. Finally, supporters say this is a matter of equity. It is unfair to single out a group of people for different treatment in employment protection on the basis of conduct which has nothing to do with work. If sexual orientation is a sufficient basis to discriminate against a person, it is a sufficient basis to prohibit discrimination. This bill, they say, offers no special treatment; it merely provides a remedy against illegal employment practices. 2. Opposition This Committee is in receipt of many letters from individuals who oppose the bill based upon asserted religious objections. One writer typifies the objection when he states, "Our nation, state, country and community are being assaulted by those who want their identity to be this chosen behavior and to have it considered on par with race, ethnicity, gender or alienage for minority status privileges. They have the freedom to behave as they choose, but they do not have the right to inhibit the freedoms of others who consider such behavior immoral." The Committee on Moral Concerns adds that, "Everyone is entitled to equal protection under the law. However, gays, lesbians, and bisexuals should not be granted more than equal protection?There is no need for this bill. Gays and lesbians are not suffering from unemployment and poverty, and they never have suffered the way other minorities have. There are no gay ghettos, and there never have been." The Seventh-Day Adventist Church State Council opposes the bill, not because of what the bill would do, but out of a fear of future changes to the law. "As Christians, we believe that all should be treated with kindness and respect. Indeed, our faith condemns the hostility shown to gays by some of those who oppose gay rights. However, we are compelled to oppose AB 1001 because (it) poses a AB 1001 (Villaraigosa) Page 5 grave threat to religious freedom?No doubt you will recall that during the last session, AB 310 was proposed with a provision to eliminate FEHA's religious employer exemption. Further legislative efforts to remove the religious employer exemption are expected." 3. Comparison of Labor Code and Government Code remedies and procedures For housing discrimination, the DFEH can order the landlord to cease and desist and to sell or rent the accommodation to the complainant, assess actual damages, and assess punitive damages of $10,000 for a first offense, $25,000 for a second, and $50,000 for three or more. In addition, the complainant can chose to file a civil action in lieu of or during the DFEH administrative process. Unlike employment discrimination cases, there is no requirement that a complainant exhaust the administrative remedies before filing a civil action. In addition, DFEH investigates complaints arising under the Unruh Civil Rights Act. That Act prohibits housing discrimination based on sexual orientation. See Hubert v. Williams (1982) 133 Cal.App.3d Supp.1. In addition, under the Unruh Act, the Attorney General, district attorneys, city attorneys, or any complainant can bring a civil action, with the following remedies allowed: actual damages, punitive damages in an amount equal to three times the actual damages or $1,000, whichever is greater, and attorney's fees. 4. Legislative history of present dichotomy The topic of employment and housing protection on the basis of sexual orientation has been the subject of numerous bills in the recent past. AB 101 (Friedman) of 1991, would have added sexual orientation to the list of protected employment categories in FEHA. It was vetoed by then-Governor Wilson. In response to concerns raised in the veto message, Mr. Friedman authored AB 2601, Ch. 915, Stats. of 1992, which codified case law (Sokora v. Dayton Hudson Corp., (1991) 235 Cal. App. 3d 654) by creating Labor Code Section 1102.1. However, supporters of gay rights continued to claim that the Labor Code provides insufficient protection. In 1998 AB 257 AB 1001 (Villaraigosa) Page 6 (Villaraigosa), a bill substantially similar to AB 1001, passed only to again be vetoed by then-Governor Wilson, based upon his preference for the remedies provided under the Labor Code as created by AB 2601 (Friedman). 5. Prior related legislation and veto message AB 257 (Villaraigosa), 1998, was substantially similar to AB 1001. AB 257 would also have moved the provisions prohibiting employment discrimination on the basis of sexual orientation from the Labor Code to the Fair Employment and Housing Act (FEHA). Then-Governor Wilson vetoed the bill saying: "I signed AB 2601, (Friedman, Ch. 15, Stats. of 1992). That measure enacted the Labor Code provision which this bill repeals. AB 2601 was a carefully crafted measure which provided the necessary resolution for employment related discrimination based on sexual or perceived sexual orientation?.Discrimination in housing on the grounds of sexual orientation is already prohibited in California under the Unruh Act and enforced by the Department of Fair Employment and Housing or in Civil Court. Since adequate protections already exist for those who suffer discrimination in housing and the workplace on the basis of sexual orientation, this bill is unnecessary." Support: AIDS Healthcare Foundation; AIDS Project East Bay; AIDS Project Los Angeles; Alameda County Board of Supervisors; Alameda Democratic Club; Alice B. Toklas Lesbian & Gay Democratic Club; American Association for Single People; American Civil Liberties Union; Asian Pacific Gays and Friends; California Alliance for Pride and Equality; California Apartment Association; California Conference Board of the Amalgamated Transit Union; California Conference of Machinists; California Labor Federation, AFL-CIO; California National Organization for Women; California Nurses Association; California Rural Legal Assistance Foundation; California Teachers Association; Central California Alliance; City of Berkeley Rent Stabilization Board; City of Santa Monica Rent Control Board; Consumer Attorneys of California; AB 1001 (Villaraigosa) Page 7 East Bay Municipal Utility District; Elections Committee of the County of Orange; Engineers and Scientists of California; Fair Employment and Housing Commission; Friends Committee on Legislation; Gay & Lesbian Assoc. of Retired Persons; Gay & Lesbian Community Center of Ventura; Hotel Employees, Restaurant Employees International Union; Human Rights Commission, City and County of San Francisco; Jewish Federation of Greater Los Angeles; Lambda Community Fund; Lesbian and Gay Bar Association; Los Angeles Chapter of PFLAG; Los Angeles Gay and Lesbian Center; National Center for Lesbian Rights; ; National Organization For Women; Office & Professional Employees, Local #3, AFL-CIO; Pride at Work , National Organization for LGBT Labor; Public Law Center; Reform Party; Region 8 States Council of the United Food & Commercial Workers; Santa Barbara Stonewall Democratic Club; San Jose/Peninsula Chapter of PFLAG; South Orange County Chapter of PFLAG; Southern California Women for Understanding; Ventura County Chapter of PFLAG; Western Center on Law and Poverty, Inc.; Wildcat International; Women Lawyers Association of Los Angeles; Attorney Carol Anderson; Attorney Michael Fiumara; Attorney Margo Dockendorf; Cliff Anchor, Past Commander, Am Legion Post #448 SF; James Mangia - Nat. Secretary, Reform Party of America; John Klehs, Chair, State Board of Equalization; Author Patricia Nell Warren; Alan L. Zimmerman, Regional Director, Reg. 13, CA Democratic Party; California Church Impact; Reverend James C. Lovette-Black; Reverend Canon Craig B. Chapman, All Saints; Reverend Lawrence A. Reh, First Light Ministries; Father Thomas M. Nylund; numerous individuals Opposition: Committee on Moral Concerns; Seventh-Day Adventist Church Council; numerous individuals HISTORY Source: Author Related Pending Legislation: None Known Prior Legislation: AB 257 (Villaraigosa), vetoed AB 1001 (Villaraigosa) Page 8 Prior Vote: Assembly Committee on Labor and Employment 6-3; Assembly Floor 42-36 **************