BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2889
                                                                  Page  1

          Date of Hearing:   May 5, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                 AB 2889 (Laird) - As Introduced:  February 20, 2004 

          Policy Committee:                              JudiciaryVote:7-3
                        Labor                                 6-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill clarifies that employers are responsible for the acts  
          of non-employees with respect to  all  forms of harassment in the  
          workplace where the employer or its agents or supervisors knew  
          or should have known of the conduct and failed to take immediate  
          and appropriate corrective action.

           FISCAL EFFECT  

          Minor absorbable costs to the Department of Fair Employment and  
          Housing.

           COMMENTS  

           1)Purpose  . Last year, AB 76 (Corbett)--Chapter 671/Statutes 2003  
            clarified that employers are required, consistent with federal  
            law, to take reasonable steps to protect their employees from  
            sexual harassment perpetrated by an employer's customers,  
            clients or other non-employees. As introduced, the measure  
            dealt with all forms of harassment, but prior to passage the  
            bill was narrowed to encompass only sexual harassment. The  
            author of AB 2889 argues that, "Because AB 76 was limited to  
            sexual harassment, it has created a "hierarchy" of harassment  
            protection favoring sexual harassment over harassment directed  
            at employees because of their race, religion, color, national  
            origin, ancestry, disability, medical condition, age, or  
            sexual orientation. This clean-up bill seeks to appropriately  
            'equalize' worker protections against harassment ? being  
            perpetrated by a customer, client or other third party in the  
            workplace." The author and supporters view the compromises to  
            AB 76 as having inadvertently created a "loop hole" with  








                                                                  AB 2889
                                                                  Page  2

            respect to state law. 

            Supporters of the bill, the Attorney General as well as many  
            statewide labor and civil rights groups, argue that, by  
            closing the loop hole, this bill merely brings California law  
            in line with the broader protections provided under federal  
            law so that California workers are not afforded less  
            protection against third party harassment than they receive  
            under federal law.

           2)Opposition .  Opponents include several business organizations.  
            The Civil Justice Association of California (CJAC) opposes  
            this bill because "it will subject employers to liability for  
            all forms of third party harassment." It also opposes the bill  
            because "Assembly Bill 76 ... expanded California law beyond  
            federal law that covers only employers with 15 or more  
            employees." CJAC further argues that employers lack control,  
            legal or otherwise, over the behavior of non-employees such as  
            clients, customers, or others outside of their supervisory  
            scope.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081