BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2676
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                                Sandre Swanson, Chair
              AB 2676 (Labor Committee) - As Introduced:  March 5, 2012
           
          SUBJECT  :   Unemployment insurance: use of information.

           SUMMARY  :   Requires the Employment Development Department (EDD) 
          to provide information to the Agricultural Labor Relations Board 
          (ALRB) for use in the investigation and enforcement of existing 
          law.  Specifically,  this bill  requires the director of EDD to 
          provide the ALRB with any information in EDD's possession, 
          including, but not limited to, employee, wage and employer 
          information, for use in the investigation or enforcement of the 
          Agricultural Labor Relations Act (ALRA).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :  In September 2010, the Assembly Committee on Labor 
          and Employment conducted an oversight hearing regarding the 
          ALRB.  Specifically, the hearing focused on two cases (Ace 
          Tomato Company and San Joaquin Tomato Growers Inc.), which had 
          been pending since 1989.  One of the reasons for delay in those 
          cases is that, despite the fact that a judgment and a makewhole 
          remedy had been issued to the workers, the ALRB had numerous 
          difficulties in determining a methodology for calculating the 
          makewhole relief, and calculating such backpay.

          The EDD collects wage data and additional information that would 
          assist enforcement efforts and speed up the time it takes ALRB 
          employees to compute and disperse monetary remedies to 
          employees.  EDD is currently prohibited from providing this 
          information by UI Code Sections 1094 and 1095, which prohibit 
          the release of information collected pursuant to administration 
          of the UI Code except to specified public agencies for specified 
          law enforcement purposes.  Currently, the ALRB has to negotiate 
          a memorandum of understanding to receive very limited types of 
          data and is restricted by a confidentiality clause from 
          introducing it into evidence in hearings.  This creates 
          unnecessary work for the ALRB's regional staff and causes 
          significant delays in enforcement.  Similar departments already 
          have lawful access to this information.  For example, the 
          Division of Labor Standards Enforcement (DLSE) has access to 
          otherwise confidential information to seek criminal, civil, or 








                                                                  AB 2676
                                                                  Page  2

          administrative remedies in connection with the failure to pay, 
          or the unlawful payment of, wages.

          Therefore, allowing the ALRB access to wage and other 
          information may expedite its compliance activities.  Other 
          potentially useful information may assist the ALRB during 
          elections in verifying the number of employees at peak 
          employment or determining the eligible employees for an 
          election.  In light of the seven day timeframe for elections 
          following petitions, allowing the ALRB to independently verify 
          such information may improve the process for all parties.  
          Certain EDD information may also assist the ALRB in its 
          enforcement of unfair labor practice charges.

          Some of the EDD reports that would be of assistance to the ALRB 
          may include, but not be limited to: DE1AG (Registration Form for 
          Agricultural Employer); DE6 - Quarterly Wage or Withholding 
          Report); DE24 (Change of Employer Account Information); DE542 
          (Report of Independent Contractors); and DE34 (Report of New 
          Employees). 

          This bill would address this problem by adding the ALRB to the 
          agencies listed in Unemployment Insurance Code section 1095 to 
          which EDD may release otherwise confidential information.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees

           Opposition 
           
          None on file.

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