BILL ANALYSIS                                                                                                                                                                                                    ”



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          ASSEMBLY THIRD READING


          AB  
          676 (Calderon)


          As Introduced  February 25, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Labor           |5-1   |Roger HernŠndez,    |Harper                |
          |                |      |Chu, Low, McCarty,  |                      |
          |                |      |Thurmond            |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |12-5  |Gomez, Bonta,       |Bigelow, Chang,       |
          |                |      |Calderon, Daly,     |Gallagher, Jones,     |
          |                |      |Eggman,             |Wagner                |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Quirk, Rendon,      |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
           ------------------------------------------------------------------- 


          SUMMARY:  Enacts various provisions of law related to  
          discrimination based on an individual's employment status (present  








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          unemployment).  Specifically, this bill:  


          1)Defines "employment status" to mean an individual's present  
            unemployment, regardless of length of time that the individual  
            has been unemployed.
          2)Prohibits an employer, unless based on a bona fide occupational  
            qualification, from doing either of the following:


             a)   Publishing an advertisement or announcement for any job  
               that includes a provision stating or indicating that an  
               individual's current employment is a requirement for the job.
             b)   Affirmatively asking an applicant for employment to  
               disclose information concerning the applicant's current  
               employment status until the employer has determined that the  
               applicant meets the minimum employment qualifications for the  
               position.


          3)Prohibits an employment agency, unless based on a bona fide  
            occupational qualification, from doing any of the following:
             a)   Publishing an advertisement or announcement for any job  
               that includes a provision stating or indicating that an  
               individual's current employment is a requirement for the job.
             b)   Limiting, segregating, or classifying an individual in any  
               manner that may limit that individual's access to information  
               about jobs or referrals for consideration of jobs because of  
               the individual's employment status.


             c)   Affirmatively asking an applicant for employment to  
               disclose information concerning the applicant's current  
               employment status until the employer has determined that the  
               applicant meets the minimum employment qualifications for the  
               position.


          4)Prohibits a person who operates a job posting Web site, unless  








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            based on a bona fide occupational qualification, from publishing  
            an advertisement or announcement for any job that includes a  
            provision stating or indicating that an individual's current  
            employment is a requirement for the job.
          5)Provides that this bill does not prohibit an employer,  
            employment agency, or person operating a job posting Web site  
            from doing the following:


             a)   Publishing an advertisement or announcement for any job  
               that contains any provision setting forth qualifications for  
               a job, as specified, including that only individuals who are  
               current employees of the employer will be considered for the  
               job.
             b)   Setting forth qualifications for any job, as specified.


             c)   Obtaining information regarding an individual's  
               employment, including recent relevant experience.


             d)   Having knowledge of a person's employment status.


             e)   Inquiring as to the reasons for an individual's employment  
               status.


             f)   Refusing to offer employment to a person because of the  
               reasons underlying an individual's employment status.


             g)   Otherwise making employment decisions pertaining to that  
               individual.


          6)Prohibits an employer, employment agency, or person operating a  
            job posting Web site from interfering with, restraining, or  
            denying the exercise of, or the attempt to exercise, any rights  








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            provided under this bill, or discriminating against an  
            individual because the individual has engaged in specified  
            activities.
          7)Authorizes an individual aggrieved by a violation of this bill  
            to file a complaint with the Labor Commissioner.


          8)Establishes civil penalties of $1,000 for a first violation,  
            $5,000 for a second violation, and $10,000 for each subsequent  
            violation.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, administrative costs to the Department of Labor  
          Standards Enforcement, potentially in the range of $1 million to  
          $3 million (special funds), to process, review, and investigate  
          complaints.


          Predicting the number and nature of the claims that may come  
          before the Division of Labor Standards Enforcement (DLSE) is  
          difficult. According to data from the Employment Development  
          Department, as of February, there are approximately 1.2 million  
          unemployed workers in California. According to DLSE, cases  
          involving retaliation often involve lengthy, resource intensive  
          investigations. This bill also expands DLSE enforcement authority  
          to include 3rd party internet website providers. This is a new  
          addition to the DLSE statutory framework and associated costs are  
          difficult to determine. Further, this bill prohibits a private  
          right of action, meaning all complaints would come before DLSE


          COMMENTS:  According to the author, research shows that the  
          long-term unemployed are frequently overlooked and sometimes  
          excluded from job opportunities.  Employers and employment  
          agencies have posted job vacancy notifications with language such  
          as "No unemployed candidates considered at all" or "Only currently  
          employed candidates will be considered." 









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          Employers are disinclined to hire even well-qualified job  
          applicants who have been out of work for six months or longer.   
          Three Princeton economists found that only 11% of those unemployed  
          for more than six months will ever regain steady full-time work.


          Therefore, the author states that this bill would seek to prevent  
          employers, including the state and local agencies, or employment  
          agencies from affirmatively asking an applicant for employment to  
          disclose information concerning employment status until the  
          employer or employment agency has determined that the applicant  
          meets the minimum employment qualifications for the position. 


          This bill will prohibit an employer, employment agency, or person  
          who operates on an Internet Web site for posting jobs in this  
          state from publishing a job announcement or advertisement  
          containing a provision stating or indicating that an individual's  
          current employment is a requirement for the job, unless based on a  
          bona fide occupational qualification.


          AB 2271 (Calderon) of 2014, which was nearly identical to this  
          bill, was vetoed by Governor Brown.




          Analysis Prepared by:                                               
          Ben Ebbink / L. & E. / (916) 319-2091  FN: 0000796
















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