BILL ANALYSIS                                                                                                                                                                                                    �






                             SENATE JUDICIARY COMMITTEE
                         Senator Hannah-Beth Jackson, Chair
                              2013-2014 Regular Session


          AB 1443 (Skinner)
          As Amended May 1, 2014
          Hearing Date: June 10, 2014
          Fiscal: Yes
          Urgency: No
          TMW


                                        SUBJECT
                                           
                             Harassment:  Unpaid Interns

                                      DESCRIPTION  

          This bill would expand discrimination and harassment protections  
          under the Fair Employment and Housing Act to include an unpaid  
          internship or any other program that provides unpaid experience  
          for a person in the workplace or industry.

                                      BACKGROUND  

          Various statutes, such as the Fair Employment and Housing Act  
          (FEHA) and the Unruh Civil Rights Act, prohibit discrimination  
          in employment, housing, public accommodation, and services  
          provided by business establishments on the basis of specified  
          personal characteristics such as sex, race, color, national  
          origin, religion, and disability.  Over time, these statutes  
          have been amended to include other characteristics such as  
          medical conditions, marital status, and sexual orientation.   
          Also over time, other statutes were amended to reflect the  
          state's public policy against discrimination in all forms.

          Existing federal law also provides anti-discrimination  
          protections for employees under Title VII of the 1964 Civil  
          Rights Act.  However, neither federal nor state law provides  
          discrimination or harassment protections for individuals who  
          work for an employer but are not paid for their work.  This  
          bill, sponsored by Equal Rights Advocates, would extend FEHA's  
          employment discrimination and harassment protections to include  
          individuals working as unpaid interns or volunteer workers.

                                                                (more)



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                                CHANGES TO EXISTING LAW
           
           Existing federal law  , Title VII of the Civil Rights Act,  
          prohibits discrimination and harassment of employees.  (42  
          U.S.C. Sec. 2000e et seq.)
           
          Existing law  , the Fair Employment and Housing Act (FEHA),  
          prohibits, as a matter of public policy, discrimination and  
          harassment in employment on the basis of race, religious creed,  
          color, national origin, ancestry, physical disability, mental  
          disability, medical condition, genetic information, marital  
          status, sex, gender, gender identity, gender expression, age,  
          sexual orientation, or military and veteran status.  (Gov. Code  
          Sec. 12940 et seq.)  Those protections cover employment  
          applicants, employment training applicants, employees, and  
          apprentices.

           Existing law  prohibits, unless based upon a bona fide  
          occupational qualification, or, except where based upon  
          applicable security regulations, as specified, an employer to  
          refuse to hire or employ a person or to refuse to select a  
          person for a training program leading to employment or to bar or  
          to discharge a person from employment or from a training program  
          leading to employment, or to discriminate against a person in  
          compensation or in terms, conditions, or privileges of  
          employment because of a conflict between the person's religious  
          belief or observance and any employment requirement.  (Gov. Code  
          Sec. 12940(l).)
             
          This bill  would expand discrimination protections for  
          apprentices in termination or other terms or treatment of that  
          apprentice in an apprenticeship training program.

           This bill  would extend the above protections to cover a person  
          in an unpaid internship, or any other program to provide unpaid  
          experience for that person in the workplace or industry. 

           This bill  would prohibit harassment by an employer of an unpaid  
          intern or volunteer.

           This bill  would extend religious belief discrimination  
          protection and accommodation requirements to an individual in an  
          apprenticeship training program, an unpaid internship, and any  
          other program to provide unpaid experience for a person in the  
          workplace or industry.

                                                                      



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                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            Neither federal nor state law explicitly protects unpaid  
            interns from sexual harassment or discrimination.  In  
            December, a federal district court in New York ruled that  
            Title VII of the 1964 Civil Rights Act - which protects  
            employees from workplace discrimination, including sexual  
            harassment - does not apply to unpaid interns because an  
            unpaid intern is not an "employee."  The New York case  
            involved a Syracuse University student who claimed she was  
            sexually harassed, kissed and groped by a supervisor at her  
            media company internship and after she rebuffed her  
            supervisor's sexual advances, was also the victim of  
            retaliation.
            Likewise, the California Fair Employment and Housing Act  
            (FEHA) protects employees and independent contractors from  
            sexual harassment and discrimination in the workplace, but  
            does not specifically include unpaid interns in its  
            provisions. Furthermore, a recent state court decision held  
            that FEHA does not apply to "volunteers" in the workplace. 

            AB 1443 would apply employment anti-discrimination protections  
            to unpaid interns and other volunteers in the workplace.  
            
          2.  Providing FEHA protection for unpaid interns and volunteer  
            workers  

          FEHA makes it unlawful for an employer, a labor organization, or  
          employment agency to discriminate against or harass, among other  
          individuals, employment applicants and apprentices.  (Gov. Code  
          Sec. 12940(c), (j).)  FEHA also prohibits discrimination of an  
          employment applicant or employee because of a conflict between  
          the person's religious belief or observance and any employment  
          requirement.  (Gov. Code Sec. 12940(l).)  This bill would extend  
          those discrimination and harassment protections to unpaid  
          interns and volunteer employees.  

          Neither federal nor state law provides discrimination or  
          harassment protection for individuals working for an employer  
          without pay.  In O'Connor v. Davis (2d Circ. 1997) 126 F.3d 112,  
          116, the United States Court of Appeals for the Second Circuit  
          held that an unpaid intern could not sue for sexual harassment  
                                                                      



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          under Title VII because she did not meet the definition of  
          employee, which, in part, requires remuneration in exchange for  
          work.  In California, the Court of Appeal, Second Appellate  
          District, Division Three, recently held that a volunteer worker  
          does not qualify for FEHA discrimination protection because FEHA  
          only "confers employee status on those individuals who have been  
          appointed, who are hired under express or implied contract, or  
          who serve as apprentices."  (Estrada v. City of Los Angeles  
          (2013) 218 Cal.App.4th 143, 149, citing Mendoza v. Town of Ross  
          (2005) 128 Cal.App.4th 625, 632.)

          According to the author, this bill is necessary because  
          "[u]npaid work is an increasingly common phenomenon among both  
          young people seeking to enter the workforce and others compelled  
          to change fields because of changing economic conditions,  
          technology, and job markets.  Failing to protect vulnerable  
          individuals from otherwise prohibited discrimination is not only  
          inconsistent and unfair, but also undermines existing law by  
          communicating to employees that such conduct is appropriate or  
          tolerable in the workplace.  Moreover, extending the specified  
          protections to unpaid interns and volunteers is consistent with  
          state law's existing protection of non-employee contractors."  

          Further, Equal Rights Advocates, sponsor, notes that,  
          "[a]ccording to a 2008 survey by the National Association of  
          Colleges and Employers, 50 percent of graduating students held  
          internships, up from the 17 percent shown in a 1992 study by  
          Northwestern University.  Women are significantly more likely  
          than men (77 [percent] versus 23 [percent]) to be engaged in  
          unpaid internships.  Women are also more likely to be victims of  
          sexual harassment. . . . Many interns work alongside and  
          undertake the same duties as their employed counterparts. . . .  
          Moreover, several professional graduate programs require or at  
          least typically include some kind of internship placement before  
          completion, including social work, law, education, and nursing."

          The American Civil Liberties Union, in support, notes that this  
          bill is "consistent with the extension afforded to non-employee  
          contractors in AB 1670 [(Kuehl, Ch. 591, Stats. 1999)] . . . .  
          California recognized as much as 15 years ago that FEHA should  
          not be limited simply by virtue of the nature of the employment  
          relationship.  With the increase of employers offering  
          internships after the recession, AB 1443 is a timely piece of  
          legislation that will help uphold civil rights protections in  
          the workplace regardless of who is being paid for their work,  
          and who is not."  This bill, consistent with the Legislature's  
                                                                      



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          intent of providing discrimination and harassment protection in  
          various forms of employment, would extend existing FEHA  
          protections for unpaid interns and volunteer workers by  
          specifically adding those individuals to FEHA.  This bill would  
          also extend the existing religious belief accommodation  
          requirements to unpaid interns and volunteer workers and would  
          expand discrimination protections for apprentices in termination  
          or other terms or treatment in an apprenticeship training  
          program.

          3.  Author's amendments  

          In order to clarify an employer's ability to choose volunteers  
          who are appropriate for the mission of their organizations, the  
          author offers the following amendments to be taken in Committee:

             Author's amendments  :

             1.   On page 4, in line 14, strike and replace "any other"  
               with "another limited duration"
             2.   On page 4, in line 15, after "unpaid" insert "work"
             3.   On page 4, in line 15, strike "in the workplace or  
               industry"


           Support  :  American Association of University Women - California;  
          American Civil Liberties Union of California; California  
          Communities United Institute; California Employment Lawyers  
          Association; California School Employees Association, AFL-CIO;  
          California State Student Association; California Women's Law  
          Center; Legal Aid Society - Employment Law Center; Monarch  
          Services - Servicios Monarca; National Association of Social  
          Workers - California Chapter; National Women's Political Caucus  
          of Silicon Valley; Pianko Law Group; Veterans Caucus of the  
          California Democratic Party; Worksafe; 65 individuals

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Equal Rights Advocates

           Related Pending Legislation  :  None Known

           Prior Legislation  :  AB 1670 (Kuehl, Ch. 591, Stats. 1999) See  
          Comment 2.
                                                                      



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           Prior Vote  :

          Assembly Floor (Ayes 71, Noes 0) 
          Assembly Committee on Judiciary (Ayes 10, Noes 0)

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