BILL ANALYSIS
AB 2850
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Date of Hearing: May 5, 2004
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Judy Chu, Chair
AB 2850 (Ridley-Thomas) - As Amended: April 27, 2004
Policy Committee: Labor and
Employment Vote: 6-2
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill enacts the Private Security Service Assurance Act,
which requires contractors and subcontractors who are awarded
contracts for private security services to retain the employees
of the former contractor on the site during a 90-day transition
period. Specifically, this bill:
1)Requires contractors and subcontractors who enter into a
contract for private security services to retain the employees
of the former contractor with at least four months of
seniority during a 90-day transition employment period, unless
the successor contractor or subcontractor has reasonable and
substantiated cause not to hire a particular employee based on
performance or conduct while working under the terminated
contract. Employees could be terminated during this 90-day
period with cause.
2)Requires that employees retained for 90 days under the
provisions of this bill be offered continued employment if
their performance during that 90-day period is satisfactory.
Employment after the 90-day period would be at will of the
employer, and employees could be terminated without cause.
3)Does not require the successor contractor to offer the
retained employees the same wages and benefits as the prior
contractor during the 90-day period or thereafter.
4)Authorizes an employee who is not retained in violation of the
provisions of this bill, or his or her agent, to bring an
action in Superior Court, and receive backpay and attorney's
fees, if he or she prevails.
AB 2850
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FISCAL EFFECT
No state fiscal impact. The bill provides for a civil
enforcement remedy.
COMMENTS
1)Rationale . The Service Employees International Union (SEIU),
the sponsor of this legislation, notes that the private
security industry has a great responsibility to provide for
public safety in office buildings and when security contracts
are changed, newly hired staff often do not know how to
provide adequate security for a particular job site. Besides
enhancing tenant security, the sponsor argues that this bill
will reduce employer unemployment insurance costs by offering
jobs to workers who would otherwise be laid off.
2)Prior Legislation . This bill is modeled after SB 20
(Alarcon), Chapter 795 of 2001, which requires successor
janitorial contractors to retain, for a specified transition
period, the employees of the previous employer performing
janitorial or building maintenance service duties with four
months or more service.
Analysis Prepared by : Stephen Shea / APPR. / (916) 319-2081