BILL ANALYSIS                                                                                                                                                                                                    �



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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1450 (Allen)
          As Amended  August 22, 2012
          Majority vote
           
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          |ASSEMBLY:  |51-26|(May 30, 2012)  |SENATE: |23-13|(August 29,    |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    L. & E.  

           SUMMARY  :  Prohibits specified activity related to an 
          individual's employment status.

          The Senate amendments  delete provisions of the bill related to 
          hiring decisions and offers of employment and instead merely:

          1)Prohibit an employer, employment agency, or a person who 
            operates an Internet Web site for posting jobs in this state, 
            unless based upon a bona fide occupational qualification, from 
            publishing an advertisement or announcement for any job that 
            includes either of the following:

             a)   A provision stating or indicating that an individual's 
               current employment is a requirement for a job; or,

             b)   A provision stating or indicating that an employer will 
               not consider an applicant for employment based on that 
               individual's employment status.

          2)Maintain provisions of the bill related to civil penalties and 
            state contracts for violations of the aforementioned 
            prohibitions, as specified.

          3)Delete language stating that civil penalties are enforceable 
            by the Labor Commissioner.

          4)Make other related and conforming changes.

           AS PASSED BY THE ASSEMBLY  , this bill:  

          1)Defined "employment status" to mean an individual's present 
            unemployment, regardless of the length of time that the 
            individual has been unemployed.








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          2)Prohibited 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.

             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)Prohibited 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)Prohibited a person who operates an Internet Web site for 








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            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 
               consider an applicant for employment based on that 
               individual's employment status.

          5)Specified 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)Specified 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)Made a violation of these provisions subject to a civil 
            penalty of $1,000 for the first violation, $5,000 for the 








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            second violation, and $10,000 for each subsequent violation, 
            enforceable by the Labor Commissioner.

          8)Provided 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, 
            terminating, or suspending the contract and debarring the 
            contractor from eligibility for future state contracts, as 
            specified.

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, this bill will result in major costs annually to the 
          Labor Enforcement and Compliance Fund for the Department of 
          Industrial Relations.

           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."
            
          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 idle 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.

          As amended in the Senate, this bill would prohibit job 
          advertisements or announcements that contain such language, as 
          specified.  This bill would enact specified civil penalties and 
          provisions related to state contractors that violate these 
          prohibitions.

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








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