BILL ANALYSIS �
AB 1450
Page 1
GOVERNOR'S VETO
AB 1450 (Allen)
As Amended August 22, 2012
2/3 vote
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|ASSEMBLY: |51-26|(May 30, 2012) |SENATE: |23-13|(August 29, |
| | | | | |2012) |
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|ASSEMBLY: |51-29|(August 30, | | | |
| | |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.
AB 1450
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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.
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
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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
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; or,
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:
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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; and,
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
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."
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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.
GOVERNOR'S VETO MESSAGE :
"This measure seeks to prevent discrimination against the
unemployed based on their job status by prohibiting employers
from stating in employment ads that applicants must be employed.
Unfortunately, as this measure went through the legislative
process it was changed in a way that could lead to unnecessary
confusion."
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN:
0005944