BILL ANALYSIS Ó AB 676 Page 1 GOVERNOR'S VETO AB 676 (Calderon) As Enrolled September 8, 2015 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |51-27 |(June 2, 2015) |SENATE: |28-9 |(September 1, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |52-27 |(September 3, | | | | | | |2015) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: L. & E. SUMMARY: Enacts various provisions of law related to discrimination based on an individual's employment status (present unemployment). AB 676 Page 2 The Senate amendments revise this bill to instead do the following: 1)Define "employment status" to mean an individual's present unemployment, regardless of length of time that the individual has been unemployed. 2)Prohibit an employer from doing either of the following: a) Publishing an advertisement or announcement for any job that includes a provision stating or indicating that an unemployed person is not eligible for the job. b) Ask an applicant to disclose, orally or in writing, the applicant's employment status until the employer has determined that the applicant meets the minimum employment qualifications for the position, as stated in the published notice for the job. 3)Provide that this bill shall not be construed to prohibit an employer from: a) Publishing an advertisement or announcement for any job that contains any provision setting forth qualifications for a job, including: i) Holding a current and valid professional or occupational license, certificate, registration, permit, or other credential. ii) Requiring a minimum level of education or training, or professional, occupational, or field experience. iii) Stating that only individuals who are current employees of the employer will be considered for that job. b) Setting forth qualifications for any job, including: AB 676 Page 3 i) Holding a current and valid professional or occupational license, certificate, registration, permit, or other credential. ii) Requiring a minimum level of education or training, or professional, occupational, or field experience. iii) Stating that only individuals who are current employees of the employer will be considered for that job. 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. 4)Provide that this bill shall become operative on July 1, 2016. FISCAL EFFECT: According to the Senate Appropriations Committee, the Department of Industrial Relations would potentially incur increased administrative costs in the range of $1 million annually (special funds) as a result of the bill, to process, review, and investigate complaints. COMMENTS: According to the author, research shows that the AB 676 Page 4 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." 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 from affirmatively asking an applicant for employment to disclose the individual's employment status until the employer has determined that the applicant meets the minimum employment qualifications for the position. AB 2271 (Calderon) of 2014, which was similar, but not identical, to this bill was vetoed by Governor Brown. GOVERNOR'S VETO MESSAGE: This bill would prohibit an employer from discriminating against job applicants based on the applicant's status as unemployed. This bill is substantially similar to the bill I vetoed last year. Nothing has changed. I still believe that the author's approach does not provide a proper or even effective path to get unemployed people back to work. AB 676 Page 5 Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0002493