BILL ANALYSIS                                                                                                                                                                                                    




                                                                  ACR 163
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          Date of Hearing:   June 23, 2010

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                                Sandre Swanson, Chair
                ACR 163 (V. Manuel Perez) - As Amended:  June 16, 2010
           
          SUBJECT  :   Domestic worker rights.

           SUMMARY  :   Encourages greater protections in federal and state  
          law for domestic workers. Specifically,  this resolution  :

          1 Makes the following legislative statements:

             a)   California's domestic workers-comprised of housekeepers,  
               nannies, and caregivers for children, persons with  
               disabilities, and the elderly-work in private households to  
               care for the health, safety, and well-being of the most  
               important aspects of Californians' lives, their families  
               and homes.

             b)   Domestic workers play a critical role in California's  
               economy, working to ensure the health and prosperity of  
               California families and freeing others to participate in  
               the workforce, which is increasingly necessary in these  
               difficult economic times.

             c)   Domestic workers across the state of California have  
               joined together to form the California Domestic Workers'  
               Coalition to achieve social and economic justice and secure  
               much-needed protections for domestic workers under  
               California's labor laws.

             d)   The National Domestic Workers Alliance is organizing  
               domestic workers across the United States to end the  
               exclusion of domestic workers from federal labor  
               protections, and the International Domestic Workers  
               Network, made up of domestic worker organizations across  
               the world, has formed to fight exploitation and abuse by  
               creating and advancing international standards in the  
               industry.

             e)   The treatment of domestic service workers under federal  
               and state laws has historically reflected stereotypical  
               assumptions about the nature of domestic work, specifically  
               that the relationship between employer and "servant" was  









                                                                  ACR 163
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               "personal," rather than commercial, in character; that  
               employment within a household was not "real" productive  
               work; and that women did not work to support their  
               families.

             f)   The Fair Labor Standards Act of 1938, which Congress  
               enacted to ensure a fair day's pay for a fair day's work,  
               excluded domestic workers from its protection at a time  
               when 60 percent of African American women workers were  
               employed as domestic workers.

             g)   The vast majority of domestic workers are women of color  
               and immigrants who, because of race and sex discrimination  
               and fear of deportation, are particularly vulnerable to  
               unlawful employment practices and abuses.



             h)   Domestic workers usually work alone, behind closed  
               doors, and out of the public eye, leaving them isolated,  
               vulnerable to abuse and exploitation, and unable to  
               advocate collectively for better working conditions.

             i)   Domestic workers often labor under harsh conditions,  
               work long hours for low wages without benefits or job  
               security, and face termination without notice or severance  
               pay, leaving many suddenly without both a job and a home.

             j)   Most domestic workers work to support families and  
               children of their own and more than half are primary income  
               earners, yet two-thirds of domestic workers earn low wages  
               or wages below the poverty line.

             aa)  Many live-in domestic workers are not permitted to make  
               basic decisions regarding the food they eat or to cook or  
               heat their meals.

             bb)  In the worst cases, domestic workers are verbally and  
               physically abused or sexually assaulted, forced to sleep in  
               conditions unfit for human habitation, and stripped of  
               their privacy and dignity.

             cc)  Many employers desire to treat their caregivers and  
               housekeepers fairly, but do not have the information to  
               guide them in setting terms of employment, and may never  









                                                                  ACR 163
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               develop a formal contract or clearly establish the rights  
               and obligations each party owes to the other.

             dd)  Domestic workers are still excluded from the most basic  
               protections afforded the rest of the labor force under  
               state and federal law, including the rights to fair wages,  
               safe and healthy working conditions, workers' compensation,  
               protection from discriminatory and abusive treatment, and  
               to engage in collective bargaining.

             ee)  Domestic workers are excluded under the National Labor  
               Relations Act, leaving them unprotected when asking for  
               respect of their basic rights and unable to collectively  
               bargain for conditions allowing them to labor in dignity.

             ff)  Domestic workers whose primary work is to care for  
               children, the elderly, or persons with disabilities are  
               excluded from overtime protections, meal and rest breaks,  
               and reporting time pay under California law, and the  
               federal Fair Labor Standards Act exempts live-in domestic  
               workers from overtime provisions and exempts "companions"  
               for the elderly and "casual" babysitters from federal  
               minimum wage and overtime provisions.

             gg)  Domestic workers are excluded from the protections of  
               the California Occupational Safety and Health Act of 1973  
               and therefore do not have the right to work in a healthy  
               and safe environment, leaving them exposed to dangerous and  
               unhealthy working conditions on a regular basis.




             hh)  Household employees who work less than 52 hours in the  
               90 days prior to sustaining an injury are excluded from  
               California workers' compensation coverage, leaving many  
               domestic workers without an adequate remedy for injuries  
               suffered in the course of their employment.

             ii)  Because state and federal antidiscrimination laws apply  
               only to employers with certain minimum numbers of  
               employees, domestic workers are often unprotected against  
               discrimination based on race, color, religion, sex,  
               national origin, age, and disability.










                                                                  ACR 163
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             jj)  Because domestic workers do not have the right to a  
               minimum number of consecutive hours of uninterrupted sleep,  
               they are often woken up repeatedly throughout the night,  
               leaving them sleep-deprived, vulnerable to illness, and  
               unable to provide proper care for those in their charge.

             aaa) Because the vast majority of domestic workers receive no  
               health benefits from their employers and have no right to  
               paid sick days, many workers cannot take time off to deal  
               with illness or medical emergencies, thereby endangering  
               their own health and the health of the families they care  
               for.

          2)Resolves the following:

             a)   That coverage of domestic workers under state and  
               federal labor law should be an expression of respect for  
               their dignity and equality and the importance of the work  
               they perform, and a rejection of antiquated and  
               long-discredited stereotypes about domestic work.

             b)   That the Legislature finds that domestic workers are  
               entitled to industry-specific protections and labor  
               standards that eliminate discriminatory provisions in the  
               labor laws and guarantee domestic workers basic workplace  
               rights to ensure that domestic workers are treated with the  
               respect and dignity they so richly deserve.

           COMMENTS  :  This resolution encourages greater protections in  
          federal and state law for "domestic" or "household" workers.

           General Background on Domestic Workers
           
          "Domestic workers" or "household workers" are generally  
          comprised of housekeepers, nannies and caregivers of children  
          and others who work in private households to care for the  
          health, safety and well-being of those under their care.

          A recent study generally summarizes the general status of  
          domestic workers as follows:

               "[Domestic] workers work in the private homes of their  
               employers, performing tasks such as in-home child, patient,  
               and elder care, housework, and cooking. They are primarily  
               female immigrants; some live in the home of their employer  









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               working around the clock, while others work in various  
               households where the work is temporary and sporadic. Many  
               are 'unaffiliated' workers, meaning they have no connection  
               to a hiring or temporary agency. The independent, private,  
               often isolated nature of domestic labor means that  
               household workers often lack information about their rights  
               or knowledge of the laws of this country and are frequently  
               exploited by employers. Those who are undocumented live in  
               constant fear of being deported. While supporting their  
               employers' homes and families, household workers frequently  
               find themselves working in substandard and often  
               exploitative conditions, earning poverty wages too low to  
               support their own families, and lacking access to basic  
               health care. Their vulnerable situation subsidizes the  
               productivity and affluence of the U.S. economy and yet this  
               occupation is little understood and marginalized by the  
               larger society and policymakers."<1>

          Advocates contend that domestic workers often labor under harsh  
          conditions, work long hours for low wages without benefits or  
          job security, and face termination without notice or severance  
          pay leaving many suddenly without income.  In the worst cases  
          domestic workers are verbally and physically abused or sexually  
          assaulted, and stripped of their privacy and dignity.

           Treatment Under Federal and State Labor Laws
           
          In general, domestic workers are largely excluded from some of  
          the more basic protections afforded to other workers under state  
          and federal law, including the rights to overtime wages, safe  
          and healthy working conditions, workers' compensation,  
          employment discrimination and the right to engage in collective  
          bargaining.

          One useful analysis includes the following overview of the  
          treatment of domestic workers uder California law:

               "In California, 'all persons employed in household  
               occupations, whether paid on a time, piece rate,  
               commission, or other basis' are entitled to be paid the  
               state minimum wage. Live-in domestic workers cannot be  
               -------------------------
          <1> "Behind Closed Doors: Working Conditions of California's  
          Household Workers."  Mujeres Unidas y Activas, Day Labor Program  
          Women's Collective of La Raza Centro Legal, Data Center (March  
          2007), p. 2.








                                                                  ACR 163
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               charged for food or housing without a voluntary, written  
               agreement. Like its federal counterpart, California wage  
               and hour laws exclude personal attendants.  However,  
               personal attendants, whether live-in or not, are entitled  
               to the California minimum wage if they spend more than  
               twenty percent of their time doing other housework.

               Non-live-in domestic workers are entitled to overtime pay  
               under California law under the same conditions as under  
               federal law; however, in California such workers are also  
               entitled to rest periods.  Ten minute rest periods and a  
               thirty minute meal period are considered on-duty and  
               counted as time worked, unless the employee is relieved of  
               all duty during the meal period.

               Live-in domestic workers are entitled to overtime only if  
               they work more than nine hours in a workday or if they work  
               on the sixth or seventh workday. These workers must be  
               given at least 12 consecutive off-duty hours on any  
               workday. Work during off duty time is compensable as  
               overtime. Personal attendants are not entitled to meal  
               breaks or rest breaks.

               All domestic workers in California are entitled to be free  
          from sexual harassment.

               Many domestic workers are entitled to workers' compensation  
               benefits if they are injured on the job. To qualify for  
               benefits under California's Worker Compensation Law,  
               domestic workers must work more than 52 hours during the 90  
               days prior to injury and must have earned $100 or more  
               during the same 90 days.

               Though rights and protections are relatively broad in  
               California, domestic workers still do not enjoy the full  
               complement of employment protections provided to most of  
               the state's workers. Domestic workers may suffer  
               discrimination, since California's Fair Employment and  
               Housing Act only prohibits employers with five or more  
               employees from discrimination on the basis of race, sex,  
               religion, national origin, pregnancy, age, disability,  
               marital status, sexual orientation, gender identity, or on  
               the basis of an English only policy.  California  
               occupational safety and health law excludes 'household  
               domestic service.'  Domestic workers who provide 'domestic  









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               service in a private home' are excluded from obtaining  
               unemployment insurance benefits unless the worker was paid  
               $1000 or more in any calendar quarter in the calendar year  
               or the preceding year.  Undocumented immigrant workers are  
               not eligible to collect unemployment insurance in  
               California.

               California employment and labor law provides most domestic  
               workers with minimum wages and maximum hours, workers'  
               compensation for injuries on the job, and protection from  
               sexual harassment.  However, domestic workers in California  
               are left without many of the basic legal protections  
               afforded to other workers in this state."<2>

           Spotlight on Overtime Protection Under California Law
          
          As discussed above, domestic workers are excluded from most  
          labor and employment law protections under California law.   
          However, the payment of overtime is one particular issue of  
          disparity that has garnered significant attention in recent  
          years - and is therefore worth addressing in some detail.

          Under existing law for most non-exempt employees, any work in  
          excess of eight hours day, in excess of 40 hours a week, and the  
          first eight hours on the seventh day of work must be compensated  
          at no less than one and one-half times the regular rate of pay.   
          Existing law also requires that any work in excess of 12 hours a  
          day and in excess of eight hours on the seventh day of work are  
          to be compensated at no less than twice the regular rate of pay.

           Treatment of "Personal Attendants" Under the Industrial Welfare  
          Commission Wage Orders
           
          In 1986, the Industrial Welfare Commission (IWC) adopted a  
          complete exemption from the overtime provisions and other  
          requirements of the Wage Orders for individuals employed as  
          "personal attendants."  The minimum wage exemption was  
          eliminated on January 1, 2001 thereby entitling "personal  
          attendants" to the state minimum wage for all hours worked.   
          However, as discussed below, a partial or complete overtime  
          exemption continues to exist for "personal attendants" under the  
          ---------------------------
          <2> Left Out: Assessing the Rights of Migrant Domestic Workers  
          in the United States, Seeking Alternatives."  Human Rights  
          Center, UC Berkeley International Human Rights Clinic, Boalt  
          Hall School of Law (November 2003), pp. 5-7.








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          IWC Wage Orders.

               1.         IWC Wage Order 15  

          IWC Wage Order 15 applies to "household occupations," defined as  
          all services related to the care of persons or maintenance of a  
          private household or its premises by an employee of a private  
          householder.

          Under Wage Order 15, "personal attendants" are defined as  
          including:

               "babysitters and means any person employed by a private  
          householder or by 
               any third party employer recognized in the health care  
          industry to work in a 
               private household, to supervise, feed, or dress a child or  
          person who by reason 
               of advanced age, physical disability, or mental deficiency  
          needs supervision."

          "Personal attendants" are completely exempt from the general  
          overtime requirements of Wage Order 15.   Therefore, "personal  
          attendants" are only required to be paid straight-time for all  
          hours worked, regardless of whether they work more than eight  
          hours in a day or 40 hours in a week.

          Wage Order 15 also specifies that the status of "personal  
          attendant" shall apply when no significant amount of work other  
          than the foregoing is required.  This limitation is intended to  
          prevent the overtime exemption from applying to employees who  
          work in households but who are not "personal attendants".  Under  
          this limitation, an employee who performs some of the work of a  
          "personal attendant" but also a significant amount of other work  
          falls outside of the exemption.

          A recent opinion letter issued by the Division of Labor  
          Standards Enforcement (DLSE) that sought to clarify the  
          definition of "personal attendants" under Wage Order 15 stated  
          the following:

               "We cannot provide you with a comprehensive list of  
          acceptable duties for
               a personal attendant.  However, it is instructional, and  
          not inconsistent with









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               the long standing DLSE position, to consider those duties  
          included by the U.S.
               Department of Health and Human Services National Center for  
          Health Statistics'
               definitions for activities of daily living.  Such  
          activities relate to personal care
               and include, but are not limited to, such duties as  
          bathing, showering, getting in
               or out of a bed or chair and using a toilet.  'Supervising'  
          may also include
               assistance in obtaining medical care, preparing meals,  
               managing money, shopping for groceries and personal items,  
               using a telephone or performing housework when such  
               activities are related to the independent living of the  
               person and cannot be performed by him or herself alone due  
               to a health or age limitation.  It must be noted, however,  
               that any general housekeeping duties performed should not  
               exceed 20% of the weekly working time spent by the personal  
               attendant to maintain his or her exemption under IWC Wage  
               Order 15." 

          Wage Order 15 also has specific provisions related to "live-in"  
          household employees who are not "personal attendants."  First,  
          Wage Order 15 specifies that a live-in employee shall have at  
          least 12 consecutive hours free of duty during each workday of  
          24 hours, and the total span of hours for a workday shall be no  
          more than 12 hours.  Wage Order 15 also specifies that a live-in  
          employee shall have at least three hours free of duty during the  
          12 hour span of work.  Finally, a live-in employee who works  
          during scheduled off-duty hours or during the 12 consecutive  
          off-duty hours is entitled to overtime for such hours.

          The net result is that a live-in employee essentially works a  
          nine hour day and is entitled to overtime for any hours worked  
          beyond that.  However, as discussed above, an employee who is a  
          "personal attendant" is completely exempt from overtime under  
          Wage Order 15.

               2.         IWC Wage Order 5  

          Wage Order 5 (which covers the "public housekeeping" industry  
          and includes home health aides) contains a partial overtime  
          exemption for "personal attendants" that is narrower than the  
          exemption contained in Wage Order 15 and applies to individuals  
          employed by nonprofit organizations.









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          Under Wage Order 5, a "personal attendant" is defined as  
          including:

               "babysitters and means any person employed by a non-profit  
               organization covered by this order to supervise, feed or  
               dress a child or person who by reason of advanced age,  
               physical disability or mental deficiency needs  
               supervision."

          Under Wage Order 5, a "personal attendant" may work up to 40  
          hours and six days in a workweek without overtime.  Therefore,  
          "personal attendants" under Wage Order 5 may work over eight  
          hours in a day without receiving overtime, as long as their  
          total hours for the week do not exceed 40.

               3.         Federal Exemption for "Companions"  

          It may also be useful to point out the federal exemption for  
          "companions" under the Fair Labor Standards Act (FLSA), which is  
          much broader than the exemption under state law.

          The FLSA provides an exemption to minimum wage and overtime  
          requirements for individuals employed in domestic service  
          employment to provide babysitting services on a casual basis, or  
          to provide companionship services for individuals who are unable  
          to care for themselves because of age or infirmity.  Companion  
          services include "those services which provide fellowship, care  
          and protection for a person who, because of advanced age or  
          physical or mental infirmity, cannot care for his or her own  
          needs.  It does not include services that require and are  
          performed by trained personnel, such as a registered nurse or a  
          practical nurse.

          FLSA regulations state that companionship services may include  
          household work related to the care of the aged or infirm person  
          such as meal preparation, bed making, washing clothes, and other  
          similar services.  Companions may perform general household work  
          as long as such work is incidental and does not exceed 20  
          percent of the total weekly hours worked.  Household work  
          related to the care of the individual is not counted towards  
                                          this 20 percent limitation.

           










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          PRIOR LEGISLATION
           
          AB 2536 (Montanez) of 2006 was the most ambitious legislation  
          aimed at these issues in recent history.  As introduced, AB 2536  
          would have eliminated the overtime exemption under California  
          law for most "personal attendants."  There was significant  
          opposition, and the bill was subsequently narrowed to generally  
          apply only to nannies.

          AB 2536 was vetoed by Governor Schwarzenegger, who stated the  
          following in his veto message:

               "This bill would require overtime payment for personal  
               attendants who are nannies.  The existing overtime  
               exemption was intended to keep these jobs above ground and  
               to allow those in need of such services to find assistance  
               at a price they can afford.  Removing this exemption would  
               dramatically increase the costs of these attendants and  
               potentially drive employment underground.

               I am also concerned that this bill creates new liquidated  
               damages penalties against employers of all household  
               workers, not merely nannies.  In short, this bill subjects  
               seniors and the severely disabled who hire household  
               workers to a new cause for civil litigation.  Given the  
               increase in frivolous labor law litigation in recent years,  
               I cannot support subjecting seniors and the disabled to  
               additional liability."

           PENDING NEW YORK LEGISLATION
           
          Legislation on domestic worker rights has been pending in New  
          York for a number of years.  However, there are indications that  
          actual enactment of such legislation may be imminent.

          Last year, the New York State Assembly passed a domestic worker  
          "bill of rights."  On June 1, 2010, the New York State Senate  
          passed a similar measure that, among other things, would require  
          paid holidays, sick days and vacation days for domestic workers,  
          along with overtime wages.  The legislation would also require  
          14 days' notice (or termination pay) before a domestic worker  
          could be terminated.









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          Lawmakers involved with the legislation have indicated that  
          after the two versions of the bill are reconciled, they  
          anticipate that Governor David A. Paterson will sign the bill.

          The law, should it be enacted, would be the first of its kind in  
          the nation and would affect an estimated 200,000 domestic  
          workers in the State of New York.

           RECENT OVERSIGHT HEARING  

          On June 9, 2010, this Committee convened an oversight hearing  
          entitled, "Behind Closed Doors: Working Conditions of California  
          Domestic Workers."  That hearing featured testimony by domestic  
          workers, academics, lawyers, worker advocates, public health  
          officials and others.  The hearing explored in detail the  
          working conditions of domestic workers in California and the  
          status of state and federal laws that apply (or do not apply) to  
          domestic workers.

           

          ARGUMENTS IN SUPPORT  :

          Supporters argue that domestic workers are among the most  
          vulnerable workers in California, yet have the least  
          protections.  A largely immigrant workforce, domestic workers  
          work in private homes, out of the public eye and largely outside  
          of the law's protections.  They are specifically excluded from  
          many minimal labor standards and are often subjected to abuse  
          and mistreatment.

          Supporters state that domestic workers, like all workers,  
          deserve a safe workplace free from harassment and intimidation.   
          They deserve fair wages and the ability to enforce their rights  
          when they are violated.  They deserve the respect and dignity  
          owed all workers and the legal protections to make that a  
          reality.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          9to5 California, National Association of Working Women
          Asian Pacific American Legal Center of Southern California









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          California Domestic Worker Rights Coalition
          California Immigrant Policy Center
          California Labor Federation, AFL-CIO
          California Nurses Association/ National Nurses Organizing  
          Committee
          California Partnership
          California Rural Legal Assistance Foundation
          Chinese Progressive Association of San Francisco
          City and County of San Francisco, Department of Public Health
          Coalition for Humane Immigrants Rights of Los Angeles
          Coalition to Abolish Slavery and Trafficking
          Ella Baker Center for Human Rights
          Filipino Advocates for Justice
          Golden Gate University Women's Employment Rights Clinic
          Graton Day Labor Prgram
          Instituto de Educacion del Sur de California
          Labor Project for Working Families
          Lawyers' Committee for Civil Rights of the San Francisco Bay  
          Area
          Mujeres Unidas y Activas
          National Korean American Service and Education Consortium
          National Lawyers Guild - Labor and Employment Committee
          Numerous Individuals
          Our Lady of the Holy Rosary Church
          People Organized to Win Employment Rights
          Pilipino Worker Center
          Rajiv Bhatia, M.D., Director of Environmental Heath, S.F. Dept.  
          of Public Health
          Salvadoran-American Leadership and Educational Fund
          San Francisco Day Labor Program, Women's Collective of La Raza  
          Centro Legal
          Service Employees International Union
          Services, Immigrants Rights and Education Network
          Southern California Coalition for Occupational Safety and Health
          UCLA Center for Labor Research and Education
          Women's Foundation of California

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091