BILL ANALYSIS �
AB 1450
Page 1
ASSEMBLY THIRD READING
AB 1450 (Allen)
As Amended April 25, 2012
Majority vote
LABOR & EMPLOYMENT 5-1 JUDICIARY 7-3
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|Ayes:|Swanson, Alejo, Allen, |Ayes:|Feuer, Atkins, Dickinson, |
| |Furutani, Yamada | |Huber, Monning, |
| | | |Wieckowski, Alejo |
|-----+--------------------------+-----+--------------------------|
|Nays:|Morrell |Nays:|Wagner, Gorell, Jones |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, Davis, | | |
| |Gatto, Ammiano, Hill, | | |
| |Lara, Mitchell, Solorio | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Donnelly, | | |
| |Nielsen, Norby, Wagner | | |
| | | | |
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SUMMARY : Prohibits employment actions relating to an
individual's employment status, as specified. Specifically,
this bill :
1)Defines "employment status" to mean an individual's present
unemployment, regardless of the length of time that the
individual has been unemployed.
2)Prohibits an employer, unless based upon a bona fide
occupational qualification, from doing any of the following:
a) Excluding an applicant from the applicant pool at any
stage of the hiring process or refusing to offer employment
because of the individual's employment status.
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b) Publishing an advertisement or announcement for any job
that includes either:
i) A provision indicating that an individual's current
employment is a requirement of the job; or,
ii) A provision indicating that an employer will not
consider an applicant for employment based on that
individual's employment status.
c) Directing an employment agency to take an individual's
employment status into account in screening or referring
applicants for employment.
3)Prohibits an employment agency, unless based upon a bona fide
occupational qualification, from doing any of the following:
a) Refusing to offer employment, or excluding an individual
from the applicant pool at any stage of the hiring process,
or failing to refer an individual for employment, because
of the individual's employment status.
b) Limiting, segregating or classifying individuals in any
manner that limits their access to information about jobs
or referrals because of their employment status.
c) Publishing an advertisement or announcement for any job
that includes either:
i) A provision indicating that an individual's current
employment is a requirement of the job; or,
ii) A provision indicating that an employer will not
consider an applicant for employment based on that
individual's employment status.
4)Prohibits a person who operates an Internet Web site for
posting jobs from publishing an advertisement or announcement
for any job that includes:
a) A provision indicating that an individual's current
employment is a requirement of the job; or,
b) A provision indicating that an employer will not
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consider an applicant for employment based on that
individual's employment status.
5)Specifies that this bill does not prohibit an employer or
other entity from doing either of the following:
a) Publishing an advertisement or announcement that sets
forth other lawful qualifications for a job, including but
not limited to, the holding of a current and valid
professional or occupational license, certificate,
registration, permit, or other credential, or a minimum
level of education or training or professional,
occupational, or field experience.
b) Printing an advertisement for a job vacancy that states
that only applicants who are currently employed by that
employer will be considered ("internal" hiring).
6)Specifies that this bill does not preclude an employer or
other entity from doing any of the following:
a) Obtaining information regarding an individual's
employment, the dates of employment, or the reasons for the
separation from employment.
b) Having knowledge of a person's employment status.
c) Considering an individual's employment history or the
reasons underlying an individual's employment status.
d) Refusing to offer employment to a person because of the
reasons underlying an individual's employment status.
e) Otherwise making employment decisions pertaining to that
individual.
7)Makes a violation of these provisions subject to a civil
penalty of $1,000 for the first violation, $5,000 for the
second violation, and $10,000 for each subsequent violation,
enforceable by the Labor Commissioner.
8)Provides that a state contract entered into after January 1,
2013, shall require compliance with these requirements, and
that failure to comply may be grounds for cancelling,
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terminating, or suspending the contract and debarring the
contractor from eligibility for future state contracts, as
specified.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill will result in administrative costs of at
least $360,000 to the Department of Industrial Relations to
process, review and investigate complaints.
COMMENTS : Over the last year, significant media attention has
focused on reports that some employers are refusing to consider
applicants for employment unless those individuals are currently
employed in other jobs (thereby excluding from consideration
those applicants who are currently unemployed). In this
economic downturn, many advocates and policymakers have referred
to this phenomenon as "discrimination against the unemployed."
This bill attempts to prohibit such a practice under state law.
The co-sponsor of this bill, the California Labor Federation,
AFL-CIO argues that the current economic downturn presents
unemployed workers with a wide variety of unique challenges -
our unemployment rate hovers at over 10% and those without jobs
have found themselves idles for historic lengths of time. The
co-sponsor states that, in addition, this recession has given
birth to a new and particularly insidious form of
discrimination. Across the country, many employers, employment
agencies, and online job Web sites have begun to openly
advertise warnings such as "no unemployed candidates considered"
or "must be currently employed." The co-sponsor argues that
this creates a perverse "catch-22" wherein these employers
require an applicant already have a job in order to find a job.
The co-sponsor argues that this bill will ban such
discrimination, whether in advertisements or through hiring
policies. Employers will also be prohibited from refusing to
hire someone because of their employment status, while an
employer's right to consider employment history is explicitly
protected. They argue that this common sense reform simply ends
blanket policies that exclude qualified workers from
consideration and therefore only affects employers currently
engaging in this process. Meanwhile, California's unemployed
will face one less obstacle to finding a successful return to
the workforce.
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Writing in opposition to this bill, a coalition of employer
groups (including the California Chamber of Commerce) argue that
this legislation will essentially prohibit employers from
legitimately inquiring into an applicant's employment history,
due to fear that any such inquiry will ultimately lead to
penalties and costs on the basis that the applicant was
discriminated against because of his/her status as unemployed.
They also argue that it unfairly targets state contractors by
imposing a three-year debarment from state contracts if found to
have violated the provisions of the bill, thus essentially
providing a hiring preference for the unemployed with state
contractors.
Opponents state that, despite the fact that the bill states it
does not prohibit an employer from conducting a review of the
applicant's employment status or the reasons for any separation
of employment, this bill will essentially do just that.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0003841