BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           2889 (Laird)
          
          Hearing Date:  8/4/2004         Amended: 5/10/2004
          Consultant:  Nora Lynn          Policy Vote: Judiciary 4-2
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          BILL SUMMARY: 
          
          AB 2889 makes an employer liable for the harassment of  
          employees in the workplace by nonemployees, where the  
          employer, its agents or supervisors knew or reasonably  
          should have known of the conduct and failed to take  
          immediate and appropriate action. 
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                          Fiscal Impact (in thousands)

           Major Provisions             2004-05             2005-06          
               2006-07            Fund

           Claims            Unknown, potentially major  
          increaseVarious
          against the state in liability

          Local             Unknown, potentially major increaseLocal
                            in liability
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          STAFF COMMENTS:  
          
          This bill meets the criteria to be placed on the Suspense  
          file.

          Under current law employers are liable for sexual  
          harassment of their employees in the workplace by harassing  
          nonemployees in cases where the employers knew or  
          reasonably should have known of the conduct and failed to  
          take action (AB 76, Corbett, 2003). AB 2889 expands that  
          liability to all forms of harassment.

          AB 2889 creates a new, separate cause of action against  
          employers, which could result in significant litigation  
          against state, local and private entities. Increased  










          liability could be in the tens of millions of dollars.