AB 1916: Civil service: Personnel Classification Plan: salary equalization.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-08-23
Existing law, the State Civil Service Act, provides for filling certain state positions through the process of examinations and the establishment of eligible lists and promotional lists. Existing law requires the Department of Human Resources to administer the Personnel Classification Plan for state civil service positions, including the allocation of every position to the appropriate class in the classification plan.
This bill would require the Department of Human Resources to, by December 13, 2019, and every 2 years thereafter, evaluate all civil service classifications and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities. The bill would require each state agency to submit specified information to the department about each state civil service certification within the agency. The bill would require the department to prepare a plan for each state agency to attain pay equity if a discrepancy is found and a specified plan to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. The bill would, until January 1, 2030, require the department to submit the report to the Legislature, not later than January 1 of each year, as specified.
Existing law, the State Civil Service Act, provides for filling certain state positions through the process of examinations and the establishment of eligible lists and promotional lists. Existing law requires the Department of Human Resources to administer the Personnel Classification Plan for state civil service positions, including the allocation of every position to the appropriate class in the classification plan.
This bill would require the Department of Human Resources to, on an annual basis, by December 13, 2019, and every 2 years thereafter, evaluate all civil service classifications and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities. The bill would require each state agency to submit specified information to the department about each state civil service certification within the agency. The bill would require the department to prepare a plan for each state agency to attain pay equity if a discrepancy is found and a specified plan to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. The bill would, until January 1, 2030, require the department to submit the report to the Legislature, not later than January 1 of each year, as specified.
Existing law, the State Civil Service Act, provides for filling certain state positions through the process of examinations and the establishment of eligible lists and promotional lists. Existing law requires the Department of Human Resources to administer the Personnel Classification Plan for state civil service positions, including the allocation of every position to the appropriate class in the classification plan.
This bill would require the Department of Human Resources to work with public employee bargaining units to develop a plan to to, on an annual basis, evaluate all civil service classifications in order to determine which classifications have substantially similar work, as specified. and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities. The bill would require each state agency to submit specified information to the department about each state civil service certification within the agency. The bill would require the department to prepare a plan, including a proposed timeline, to ensure the equality of the pay scale for equivalent classifications. plan for each state agency to attain pay equity if a discrepancy is found and a specified plan to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. The bill would would, until January 1, 2030, require the department to submit the plan and timeline report to the Legislature, not later than June 30, 2019. January 1 of each year, as specified.
Existing law, the State Civil Service Act, provides for filling certain state positions through the process of examinations and the establishment of eligible lists and promotional lists. Existing law requires the Department of Human Resources to administer the Personnel Classification Plan for state civil service positions, including the allocation of every position to the appropriate class in the classification plan.
This bill would require the Department of Human Resources to work with public employee bargaining units to develop a plan to evaluate all civil service classifications in order to determine which classifications have substantially similar work, as specified. The bill would require the department to prepare a plan, including a proposed timeline, to ensure the equality of the pay scale for equivalent classifications. The bill would require the department to submit the plan and timeline to the Legislature, not later than June 30, 2019.
(a)The department shall, by December 13, 2019, and once every two years thereafter, evaluate all state civil service classifications in the Personnel Classification Plan and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities.
(b)(1)Each state agency shall, by a date determined by the department and in a format determined by the department, provide statistical information to the department for each state civil service classification within that state agency.
(2)The report shall include a plan for each state agency to attain pay equity if a discrepancy is found and a plan that is lawful and consistent with existing law to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. The department shall develop the plan in a collaborative manner with each state agency.
(3)On or before a date determined by the department, each state agency shall submit to the department information regarding the state agencys progress toward the state agencys plan described in paragraph (2) for wage parity and increasing those underrepresented groups including women and minorities. This shall include a detailed proposed timeline for meeting the goal of wage parity and creating a diverse workforce subject to paragraph (2).
(c)Until January 1, 2030, the department shall submit the report to the Legislature no later than January 1 following the completion of the report described in subdivision (a), in accordance with Section 9795. The facts and findings from the report for each state agency shall be presented by the head of each state agency, or his or her representative, to the appropriate legislative budget subcommittees when the budget of that state agency is before the subcommittee. The report shall include the state agencys efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency subject to paragraph (2) of subdivision (b).
(a)The department shall, on an annual basis, by December 13, 2019, and once every two years thereafter, evaluate all state civil service classifications in the Personnel Classification Plan and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities.
(b)(1)Each state agency shall, by a date determined by the department and in a format determined by the department, provide statistical information to the department for each state civil service classification within that state agency.
(2)The report shall include a plan for each state agency to attain pay equity if a discrepancy is found and a plan that is lawful and consistent with existing law to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. The department shall develop the plan in a collaborative manner with each state agency.
(3)On or before a date determined by the department, each state agency shall submit to the department information regarding the state agencys progress toward the state agencys plan described in paragraph (2) for wage parity and increasing those underrepresented groups including women and minorities. This shall include a detailed proposed timeline for meeting the goal of wage parity and creating a diverse workforce subject to paragraph (2).
(c)Until January 1, 2030, the department shall submit the report to the Legislature no later than January 1 of each year following the completion of the report described in subdivision (a), in accordance with Section 9795. The facts and findings from the report for each state agency shall be presented by the head of each state agency, or his or her representative, to the appropriate legislative budget subcommittees when the budget of that state agency is before the subcommittee. The report shall include the state agencys efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency subject to paragraph (2) of subdivision (b).
(a)The department shall work collaboratively with representatives of public employee bargaining units to develop a plan to shall, on an annual basis, evaluate all state civil service classifications in the Personnel Classification Plan to determine which classifications have substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions. and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities.
(b)(1)Each state agency shall, by a date determined by the department and in a format determined by the department, provide statistical information to the department for each state civil service classification within that state agency.
(2)The report shall include a plan for each state agency to attain pay equity if a discrepancy is found and a plan that is lawful and consistent with existing law to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. The department shall develop the plan in a collaborative manner with each state agency.
(3)On or before a date determined by the department, each state agency shall submit to the department information regarding the state agencys progress toward the state agencys plan described in paragraph (2) for wage parity and increasing those underrepresented groups including women and minorities. This shall include a detailed proposed timeline for meeting the goal of wage parity and creating a diverse workforce subject to paragraph (2).
(b)Once the evaluation of the classifications described in subdivision (a) is complete, the department shall prepare a plan, including a detailed, proposed timeline, to ensure that each substantially similar classification has an equal pay scale.(c)The Until January 1, 2030, the department shall submit the plan and timeline report to the Legislature not later than June 30, 2019, no later than January 1 of each year in accordance with Section 9795. The facts and findings from the report for each state agency shall be presented by the head of each state agency, or his or her representative, to the appropriate legislative budget subcommittees when the budget of that state agency is before the subcommittee. The report shall include the state agencys efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency subject to paragraph (2) of subdivision (b).
(a)The department shall work collaboratively with representatives of public employee bargaining units to develop a plan to evaluate all state civil service classifications in the Personnel Classification Plan to determine which classifications have substantially similar work, when viewed as a composite of skill, effort, and responsibility, and performed under similar working conditions.
(b)Once the evaluation of the classifications described in subdivision (a) is complete, the department shall prepare a plan, including a detailed, proposed timeline, to ensure that each substantially similar classification has an equal pay scale.
(c)The department shall submit the plan and timeline to the Legislature not later than June 30, 2019, in accordance with Section 9795.
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Date
|
Status
|
|---|---|
| Sep 30, 2018 | Vetoed by Governor. |
| Aug 27, 2018 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 22, 2018 | In Assembly. Ordered to Engrossing and Enrolling. |
| Aug 21, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 17, 2018 | From committee: Do pass. (Ayes 7. Noes 0.) (August 16). |
| Aug 6, 2018 | In committee: Referred to APPR. suspense file. |
| Jun 26, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (June 25). Re-referred to Com. on APPR. |
| Jun 7, 2018 | Referred to Com. on P.E. & R. |
| May 31, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 30, 2018 | Read third time. Passed. Ordered to the Senate. |
| May 29, 2018 | Read second time. Ordered to third reading. |
| May 25, 2018 | From committee: Amend, and do pass as amended. (Ayes 13. Noes 2.) (May 25). |
| May 2, 2018 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 18, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (April 18). Re-referred to Com. on APPR. |
| Apr 11, 2018 | Re-referred to Com. on P.E., R., & S.S. |
| Apr 10, 2018 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P.E., R., & S.S. Read second time and amended. |
| Feb 5, 2018 | Referred to Com. on P.E., R., & S.S. |
| Jan 24, 2018 | From printer. May be heard in committee February 23. |
| Jan 23, 2018 | Read first time. To print. |
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Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 21, 2018 | Assembly 3rd Reading AB1916 Cooper et al. By Skinner | Senate Floor |
Passed |
|
| Aug 16, 2018 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 6, 2018 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 25, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Public Employment and Retirement |
Passed |
|
| May 30, 2018 | AB 1916 COOPER Assembly Third Reading | Assembly Floor |
Passed |
|
| May 25, 2018 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 18, 2018 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Public Employees, Retirement, and Social Security |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Aaron Reid and Associates | * Support | Apr 18, 2018 |
| American Federation of State, County, and Municipal Employees | * Support | Apr 18, 2018 |
| Association Of California State Supervisors | ** Support | Aug 18, 2018 |
| California Association Of Professional Scientists | ** Support | Aug 18, 2018 |
| California Labor Federation | ** Support | Aug 18, 2018 |
| Professional Engineers In California Government | ** Support | Aug 18, 2018 |
GOVERNOR'S VETO
GV Bill Id:AB 1916
Author:(Cooper)
As Enrolled Ver:August 27, 2018
2/3 vote
Committee | Votes | Ayes | Noes |
Public Employees | 6-0 | Rodriguez, Brough, Cervantes, Cooley, Cooper, O'Donnell | |
Appropriations | 13-2 | Gonzalez Fletcher, Bigelow, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Gallagher, Obernolte |
ASSEMBLY: | 67-0 | (May 30, 2018) | SENATE: | 39-0 | (August 21, 2018) |
Original Committee Reference: P.E.,R., & S.S.
SUMMARY: Requires an evaluation and biennial report by the California Department of Human Resources (CalHR) on gender and ethnicity pay equity for all civil service classifications where there is an underrepresentation of women and minorities.
EXISTING LAW:
1) Requires CalHR to administer the state's Personnel Classification Plan which includes the allocation of every position to the appropriate class in the classification plan.
2) Requires CalHR to assess the adequacy of the Personnel Classification Plan and, as needed, recommend changes to the State Personnel Board. The recommendations must include a need to establish additional classes, or to abolish or alter existing classes.
3) Requires, pursuant to Government Code Section 19827.2, CalHR to review and analyze existing information, including studies from other jurisdictions relevant to setting salaries for "female-dominated jobs," and to provide this information to the appropriate legislative policy committees and the state's collective bargaining units.
4) Establishes the California Equal Pay Act (CEPA) which prohibits an employer from paying its employees less than employees of the opposite sex for equal work.
5) Establishes the California Fair Pay Act (CFPA) which amended the CFPA by requiring equal pay for employees who perform substantially similar work when viewed as a composite of skill, effort and responsibility, among other provisions.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in minor and absorbable costs for CalHR to gather required data; costs in the range of $250,000 to $300,000 every two years for CalHR to coordinate with state agencies to develop a plan for addressing pay disparities within identified job classifications; and, unknown, but likely significant costs across state agencies to update CalHR on the implementation of the plan to address pay disparities and hiring in identified job classifications. For example, costs to the Department of Justice are expected to exceed $400,000 each year that it must prepare a plan, as required by this bill.
COMMENTS: According to the author, "[e]ach year, the United States Census Bureau and the United States Bureau of Labor Statistics provide an estimate of the wage gap using annual earnings according to the Current Population Survey Annual Social and Economic Supplement data. Although, the gender wage gap has narrowed since the 1960s, after the passage of the federal Equal Pay Act of 1963 (EPA), female workers nationwide earned 78% of what male workers were paid as of 2013. According to the US Census Bureau, in 2015 women made 80 cents for every dollar earned by men.
'In 2014, California's statewide gender gap both public and private was 15.9% meaning women earned 84 cents on the dollar compared to men. This resulted in $37 billion in annual income lost. This disparity impacts not just these women's daily lives but also their retirement.
Women are the primary or sole earners in nearly 40% of families, and married women are the primary or co-earners in 2/3 of California families. In 2016, a report from the California Department of Human Resources found that women in the state workforce earn about 79.5 cents on the dollar compared to men.
'Last year I authored Assembly Bill (AB) 46, which expanded California's pay equity laws to the public sector. However, I believe we must evaluate all state civil service classifications and prepare a detailed report on gender and ethnicity pay equity and each classification where there is an underrepresentation of women and minorities to ensure we are really closing the wage gap. It is my goal by authoring AB 1916 that we achieve pay equity for all women and minorities in all job classifications in the public sector."
The information called for by this bill is currently provided by the Department of Human Resources and the State Controller’s office. I think it is reasonably complete and provides a basis for sound legislative review.
Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957 FN: 0005306
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1916
:
SENATE PUBLIC EMP. & RET. COMMITTEE: 4-1, 6/25/18
AYES: Pan, Morrell, Leyva, Portantino
NOES: Moorlach
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/16/18
AYES: Portantino, Bates, Beall, Bradford, Hill, Nielsen, Wiener
ASSEMBLY FLOOR: 67-0, 5/30/18 - See last page for vote
DIGEST:
This bill requires an evaluation and biennial report by the California Department of Human Resources on gender and ethnic pay disparities for all civil service classifications where there is an underrepresentation of women and minorities, among other provisions.
ANALYSIS:
Existing law:
- Establishes the California Department of Human Resources (CalHR) to oversee all issues related to employee salaries and benefits, job classifications, civil rights, training, exams, employee recruitment and retention, and collective bargaining with the state’s twenty-one collective bargaining units.
- Requires CalHR to administer the state’s Personnel Classification Plan, which includes the allocation of every position to the appropriate class.
- Specifies that the allocation of a position to a class must be derived from, and determined by, the ascertainment of the duties and responsibilities of the position and based on the principle that all positions are to be included in the same class based on the following characteristics:
- The positions are sufficiently similar in respect to duties and responsibilities that the same descriptive title may be used.
- Substantially the same requirements as to education, experience, knowledge, and ability are demanded of incumbents.
- Substantially the same tests of fitness may be used in choosing qualified appointees.
- The same schedule of compensation can be made to apply with equity.
- Requires CalHR to assess the adequacy of the Personnel Classification Plan and, as needed, recommend changes to the State Personnel Board. Such recommendations must include the need for the establishment of additional classes, or the abolishment or alternation of existing classes.
- Authorizes CalHR to designate an appointing power to allocate positions to the Personnel Classification Plan, as specified, and to audit position allocations. If CalHR finds that positions are inappropriately allocated, it may order corrective action to the appointing power including, but not limited to, reallocating positions, and revoking or restricting the appointing power’s ability to allocate positions.
- Requires CalHR to review information relevant to the setting of salaries for female-dominated occupations, with the intent of establishing a foundation for salaries based on comparability of the value of work to other civil service classifications.
- Prohibits, under the California Equal Pay Act, a public or private sector employer from paying an employee wage rates less than the rates paid to employees of the opposite sex for substantially similar work requiring the same skills, effort, and responsibility when performed under similar working conditions.
- Prohibits public and private sector employers from paying employees a wage rate less than the rate paid to employees of a different race or ethnicity for substantially similar work requiring the same skills, effort, and responsibility when performed under similar working conditions.
This bill:
- Requires CalHR, by December 13, 2019, and once every two years afterwards, to evaluate all civil service classifications in the Personnel Classification Plan and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities.
- Mandates each state agency to submit statistical information to CalHR, as specified, for each state civil service classification within that agency.
- Specifies the CalHR report shall include: a plan for each state agency to attain pay equity if a discrepancy is found and a plan, as specified, to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. CalHR shall develop the plan in a collaborative manner with each state agency.
- Requires each state agency to submit information to CalHR, as specified, regarding the agency’s progress towards its plan, as specified, for wage parity and increasing those underrepresented groups, including women and minorities. This includes a detailed timeline proposal for meeting the goal of wage parity and creating a diverse workforce, as specified.
- Requires CalHR to submit its report to the Legislature no later than January 1st, as specified, until January 1, 2030. The facts and findings from the report from each state agency shall be presented by the head of each state agency, or their representative, to the appropriate legislative budget subcommittees when the budget of that state agency is before the subcommittee.
- Specifies that the report presented to the Legislature shall include the state agency’s efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency, as specified.
Comments
According to the author:
In 2014, California’s statewide gender gap was 15.9 percent, meaning women earned 84 cents on the dollar compared to men, resulting in $37 billion in lost income annually. This disparity impacts not just the daily lives of women, but also their retirement. According to a recent report from the Institute for Women’s Policy Research, if progress continues at its current rate, the gender wage gap in the United States will not close until 2058.
Racial and ethnic pay disparities remain an issue. According to a 2013 study, California African American and Hispanic women earn just 64 and 44 cents, respectively, for every dollar a white man earns. Additionally, African American men earn 75 percent of the average salary of white men.
AB 1916 will help close the gender and ethnicity pay gap and the underrepresentation of women and minorities in state civil service classifications.
Responsibilities of the California Department of Human Resources
As part of the Governor’s Reorganization Plan Number 1, on July 1, 2012, the Department of Personnel Administration and all non-merit functions of the State Personnel Board consolidated to create CalHR. Among other responsibilities, CalHR:
- Represents the Governor as the employer, in employer-employee relations pursuant to the Dills Act, including collective bargaining with the state’s 21 collective bargaining units.
- Administers the state’s classification plan, salaries, and manager and supervisor program, among other programs related to personnel.
- Provides leadership and guidance to departments to protect the civil rights of all state employees.
- Creates and administers the state’s civil service exam to provide a fair and open process to hire qualified candidates to serve the state.
Pay Equity in the Civil Service
Each year CalHR releases a report on women’s earnings in state civil service classifications. The newest report, posted online on CalHR’s Web site in February of 2018, covers state employee data from 1989 until 2015.
CalHR states in the report, “[We are] committed to closing the gender pay equity gap in state civil service. In recognizing the interests of both the Administration and the Legislature in achieving this goal, CalHR also is committed to better understanding the existing pay gap in median salary between men and women in state civil service and presenting strategies for state agencies to close this gap.”
Key findings from the report include:
- With women in state civil service branching out to higher paying job categories, the gender pay gap has improved, closing to 19.9 percent in 2015 from 25.8 percent in 1989. During that period, increases in the median salary of women civil service employees outpaced increases in the median salary for men in civil service. Within specific job classifications, there is no pay gap.
- The state civil service pay gap this year fell below the general national gap, 20 percent in 2015, but remains above the 14.2 percent gap for the state overall.
- Further narrowing the pay gap requires increasing the number, and representation, of women state employees in higher paying job classifications.
- California employs women in state civil service in a wider range of occupations than found in the general California workforce and the United States workforce.
- The state civil service employs a larger percentage of women in science, technology, engineering and mathematics careers than found in California’s overall workforce and the national workforce.
- Women make up a percentage of the civil service that is higher than their presence in both the California and U.S. workforce.
Related/Prior Legislation
AB 46 (Cooper, Chapter 776, Statutes of 2017) expanded the California Equal Pay Act to public employees.
AB 1209 (Gonzalez Fletcher, 2017) would have required employers to collect specified information on gender pay differentials and for the employer to publish this information online. The bill was vetoed by the Governor with the following message:
This bill would require employers with 500 or more employees in California to provide to the Secretary of State specific information regarding gender wage differentials for exempt employees and board members.
I have strongly supported polices that ensure women are compensated equitably and will continue to do so. While transparency is often the first step to addressing an identified problem, it is unclear that the bill as written, given its ambiguous wording, will provide data that will meaningfully contribute to efforts to close the gender wage gap. Indeed, I am worried that this ambiguity could be exploited to encourage more litigation than pay equity.
Since the Equal Pay Act was signed into law in 2015, the Pay Equity Task Force, which is comprised of members from this administration, business, academia, labor, the legislature and pay equity advocates, has been engaged in analysis of the new law, as well as workplace and compensation policies that can lead to successful compliance with the Act. Guidance and recommendations coming out of the Task Force will assist companies around the state with assessing their current wage practices.
SB 1063 (Hall, Chapter 866, Statutes of 2016) expanded the prohibitions in the California Equal Pay Act related to gender to include discrimination based on race or ethnicity.
AB 1676 (Campos, Chapter 856, Statutes of 2016) stipulated that prior salary cannot, by itself, justify any disparity in compensation.
SB 358 (Jackson, Chapter 546, Statutes 2015) prohibited public and private employers from paying any employee less than the wage rates paid to employees of the opposite sex in the same establishment for substantially similar work, when viewed as a composite of skill, effort and responsibility, and when performed under similar working conditions.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
According to the Senate Appropriations Committee, CalHR indicates that it would incur currently undetermined, but significant programming costs to comply with this bill’s reporting requirements. In addition, this bill would result in unknown costs across state agencies to interface with CalHR and update it on the implementation of plans to address pay disparities and hiring in identified job classifications.
American Federation of State, County and Municipal Employees, AFL-CIO
Association of California State Supervisors
California Association of Professional Scientists
California Labor Federation
Professional Engineers in California Government
OPPOSITION: (Verified 8/17/18)
None received
ARGUMENTS IN SUPPORT: The California Labor Federation states,
Aggregate data on the wage gap women face is available. However, more nuanced data breaking down job category wages by gender and race has not been widely gathered. The data that is available does suggest a serious problem, as Harvard labor economist Claudia Goldin, for example, has found that the pay gap is widest in some of the highest paying fields. In order to appropriately target efforts to reduce and eliminate the wage gap, more of such data needs to be collected.
AB 1916 will begin to address this problem within state civil service by collecting relevant data for state employees. With this information and [the bill’s] required steps, we can analyze the numbers to produce effective plans to level the economic playing field for all state workers, regardless of gender or ethnicity.
The Association of California State Supervisors writes, “[We] are committed to ensuring that all state employees, regardless of gender, race, or any other identifying characteristic, are paid equally if they perform substantially similar work. AB 1916 would ensure that all California state employees are paid equally and appropriately for performing substantially similar work functions.”
The California Association of State Scientists adds, “California state scientists work hard, and we expect the State of California to provide a safe and healthy workplace. However, even with California’s Equal Pay Act and the passage of SB 358, there is currently no specific provision requiring state agencies or CalHR to evaluate gender and ethnic pay disparities in the state workforce. This bill would strengthen California’s existing Equal Pay Act and ensure employees performing substantially equivalent work are paid fairly by requiring equal pay for work of a comparable character.”
ASSEMBLY FLOOR: 67-0, 5/30/18
AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Lackey, Levine, Limón, Low, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Travis Allen, Brough, Fong, Gallagher, Harper, Kiley, Mathis, Mayes, Melendez, Obernolte, Patterson
8/18/18 13:35:17
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2017 - 2018 Regular Session
AB 1916 (Cooper) - Civil service: Personnel Classification Plan: salary equalization
Version: May 25, 2018 | Policy Vote: P.E. & R. 4 - 1 |
Urgency: No | Mandate: No |
Hearing Date: August 6, 2018 | Consultant: Robert Ingenito |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
AB 1916 would require an evaluation and biennial report by the California Department of Human Resources (CalHR) regarding gender and ethnic pay disparities for all civil service classifications where there is an underrepresentation of women and minorities.
Fiscal Impact:
CalHR indicates that it would incur currently undetermined, but significant programming costs to comply with the bill’s reporting requirements. In addition, the bill would result in unknown costs across state agencies to interface with CalHR and update it on the implementation of plans to address pay disparities and hiring in identified job classifications.
Background:
CalHR was created in 2012 as part of an administration reorganization plan. Among its other responsibilities, CalHR does the following:
- Represent the Governor as the employer, in employer-employee relations pursuant to the Dills Act, including collective bargaining with the state’s twenty-one collective bargaining units.
- Administer the state’s classification plan, salaries, and manager and supervisor program, among other programs related to personnel.
- Provide leadership and guidance to departments to protect the civil rights of all state employees.
- Create and administers the state’s civil service exam to provide a fair and open process to hire qualified candidates to serve the State.
CalHR annually releases a report on women’s earnings in state civil service classifications. The latest report, released in February 2018, utilizes state employee data from 1989 until 2015. Key findings from the report include, among other things, the following: (1) with women in state civil service branching out to higher paying job categories during the 26-year period, the gender pay gap has improved, and within certain job classifications, has been eliminated, (2) the state civil service pay gap this year fell below the general national gap, 20 percent in 2015, but remains above the 14.2 percent gap for the state overall, and (3) to further narrow the gender pay gap, there must be an increased number of women in higher-paying job classifications.
Proposed Law:
This bill would, among other things, do the following:
- Require CalHR, by December 13, 2019, and biennially thereafter, to evaluate all civil service classifications in the Personnel Classification Plan and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities.
- Mandate each state agency to submit statistical information to CalHR, as specified, for each state civil service classification within that agency.
- Specify the CalHR report shall include: a plan for each state agency to attain pay equity if a discrepancy is found and a plan, as specified, to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. CalHR shall develop the plan in a collaborative manner with each state agency.
- Require each state agency to submit information to CalHR, as specified, regarding the agency’s progress towards its plan, as specified, for wage parity and increasing those underrepresented groups, including women and minorities. This includes a detailed timeline proposal for meeting the goal of wage parity and creating a diverse workforce, as specified.
- Require CalHR to submit its report to the Legislature no later than January 1st, as specified, until January 1, 2030. The facts and findings from the report from each state agency shall be presented by the head of each state agency, or their representative, to the appropriate legislative budget subcommittees when the budget of that state agency is before the subcommittee.
- Specify that the report presented to the Legislature shall include the state agency’s efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency, as specified.
Related Legislation:
- AB 46 (Cooper, Chapter 776, Statutes of 2017), expanded the California Equal Pay Act to public employees.
- AB 1209 (Gonzalez Fletcher, 2017) would have required employers to collect specified information on gender pay differentials and for the employer to publish this information online. The bill was vetoed by the Governor.
Staff Comments:
This bill would require an in-depth data analysis concerning pay disparities in those job classifications with an underrepresentation of women and minorities. The State currently establishes classification salaries based on merit and seniority; no classification imposes wage differentials based on employee gender or ethnicity. Wage increases are collectively bargained with unions, and apply across an entire bargaining unit or a classification, and are not applied individually.
-- END --
SENATE COMMITTEE ON
PUBLIC EMPLOYMENT AND RETIREMENT
Dr. Richard Pan, Chair
2017 - 2018 Regular
Bill No: AB 1916 Hearing Date: 6/25/18
Author: | Cooper | ||
Version: | 5/25/18 As amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Korinne Sugasawara | ||
Subject: Civil service: Personnel Classification Plan: salary equalization.
SOURCE: Author
ASSEMBLY VOTES:
Assembly Floor: | 67 - 0 |
Assembly Appropriations Committee: | 13 - 2 |
Assembly Public Employees, Retirement, and Social Security Committee: | 6 - 0 |
DIGEST: This bill requires an evaluation and biennial report by the California Department of Human Resources on gender and ethnic pay disparities for all civil service classifications where there is an underrepresentation of women and minorities, among other provisions.
ANALYSIS:
Existing law:
- Establishes the California Department of Human Resources (CalHR) to oversee all issues related to employee salaries and benefits, job classifications, civil rights, training, exams, employee recruitment and retention, and collective bargaining with the state’s twenty-one collective bargaining units.
- Requires CalHR to administer the state’s Personnel Classification Plan, which includes the allocation of every position to the appropriate class.
- Specifies that the allocation of a position to a class must be derived from, and determined by, the ascertainment of the duties and responsibilities of the position and based on the principle that all positions are to be included in the same class based on the following characteristics:
- The positions are sufficiently similar in respect to duties and responsibilities that the same descriptive title may be used.
- Substantially the same requirements as to education, experience, knowledge, and ability are demanded of incumbents.
- Substantially the same tests of fitness may be used in choosing qualified appointees.
- The same schedule of compensation can be made to apply with equity.
- Requires CalHR to assess the adequacy of the Personnel Classification Plan and, as needed, recommend changes to the State Personnel Board. Such recommendations must include the need for the establishment of additional classes, or the abolishment or alternation of existing classes.
- Authorizes CalHR to designate an appointing power to allocate positions to the Personnel Classification Plan, as specified, and to audit position allocations. If CalHR finds that positions are inappropriately allocated, it may order corrective action to the appointing power including, but not limited to, reallocating positions, and revoking or restricting the appointing power’s ability to allocate positions.
- Requires CalHR to review information relevant to the setting of salaries for female-dominated occupations, with the intent of establishing a foundation for salaries based on comparability of the value of work to other civil service classifications.
- Prohibits, under the California Equal Pay Act, a public or private sector employer from paying an employee wage rates less than the rates paid to employees of the opposite sex for substantially similar work requiring the same skills, effort, and responsibility when performed under similar working conditions.
- Prohibits public and private sector employers from paying employees a wage rate less than the rate paid to employees of a different race or ethnicity for substantially similar work requiring the same skills, effort, and responsibility when performed under similar working conditions.
This bill:
- Requires CalHR, by December 13, 2019, and once every two years afterwards, to evaluate all civil service classifications in the Personnel Classification Plan and prepare a detailed report on gender and ethnicity pay equity in each classification where there is an underrepresentation of women and minorities.
- Mandates each state agency to submit statistical information to CalHR, as specified, for each state civil service classification within that agency.
- Specifies the CalHR report shall include: a plan for each state agency to attain pay equity if a discrepancy is found and a plan, as specified, to recruit, attract, and retain women and minorities into positions where there is an underrepresentation of those subgroups. CalHR shall develop the plan in a collaborative manner with each state agency.
- Requires each state agency to submit information to CalHR, as specified, regarding the agency’s progress towards its plan, as specified, for wage parity and increasing those underrepresented groups, including women and minorities. This includes a detailed timeline proposal for meeting the goal of wage parity and creating a diverse workforce, as specified.
- Requires CalHR to submit its report to the Legislature no later than January 1st, as specified, until January 1, 2030. The facts and findings from the report from each state agency shall be presented by the head of each state agency, or their representative, to the appropriate legislative budget subcommittees when the budget of that state agency is before the subcommittee.
- Specifies that the report presented to the Legislature shall include the state agency’s efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency, as specified.
Background
According to the author,
“In 2014, California’s statewide gender gap was 15.9 percent, meaning women earned 84 cents on the dollar compared to men, resulting in $37 billion in lost income annually. This disparity impacts not just the daily lives of women, but also their retirement. According to a recent report from the Institute for Women’s Policy Research, if progress continues at its current rate, the gender wage gap in the United States will not close until 2058.
Racial and ethnic pay disparities remain an issue. According to a 2013 study, California African American and Hispanic women earn just 64 and 44 cents, respectively, for every dollar a white man earns. Additionally, African American men earn 75 percent of the average salary of white men.
AB 1916 will help close the gender and ethnicity pay gap and the underrepresentation of women and minorities in state civil service classifications.”
Responsibilities of the California Department of Human Resources
As part of the Governor’s Reorganization Plan Number 1, on July 1, 2012, the Department of Personnel Administration and all non-merit functions of the State Personnel Board consolidated to create CalHR. Among other responsibilities, CalHR:
- Represents the Governor as the employer, in employer-employee relations pursuant to the Dills Act, including collective bargaining with the state’s twenty-one collective bargaining units.
- Administers the state’s classification plan, salaries, and manager and supervisor program, among other programs related to personnel.
- Provides leadership and guidance to departments to protect the civil rights of all state employees.
- Creates and administers the state’s civil service exam to provide a fair and open process to hire qualified candidates to serve the state.
Pay Equity in the Civil Service
Each year CalHR releases a report on women’s earnings in state civil service classifications. The newest report, posted online on CalHR’s website in February of 2018, covers state employee data from 1989 until 2015.
CalHR states in the report, “[We are] committed to closing the gender pay equity gap in state civil service. In recognizing the interests of both the Administration and the Legislature in achieving this goal, CalHR also is committed to better understanding the existing pay gap in median salary between men and women in state civil service and presenting strategies for state agencies to close this gap.”
Key findings from the report include:
- With women in state civil service branching out to higher paying job categories, the gender pay gap has improved, closing to 19.9 percent in 2015 from 25.8 percent in 1989. During that period, increases in the median salary of women civil service employees outpaced increases in the median salary for men in civil service. Within specific job classifications, there is no pay gap.
- The state civil service pay gap this year fell below the general national gap, 20 percent in 2015, but remains above the 14.2 percent gap for the state overall.
- Further narrowing the pay gap requires increasing the number, and representation, of women state employees in higher paying job classifications.
- California employs women in state civil service in a wider range of occupations than found in the general California workforce and the United States workforce.
- The state civil service employs a larger percentage of women in science, technology, engineering and mathematics careers than found in California’s overall workforce and the national workforce.
- Women make up a percentage of the civil service that is higher than their presence in both the California and U.S. workforce.
Related/Prior Legislation
AB 46 (Cooper, Chapter 776, Statutes of 2017), expanded the California Equal Pay Act to public employees.
AB 1209 (Gonzalez Fletcher, 2017), vetoed by the Governor, would have required employers to collect specified information on gender pay differentials and for the employer to publish this information online.
To the Members of the California State Assembly:
I am returning Assembly Bill 1209 without my signature.
This bill would require employers with 500 or more employees in California to provide to the Secretary of State specific information regarding gender wage differentials for exempt employees and board members.
I have strongly supported polices that ensure women are compensated equitably and will continue to do so. While transparency is often the first step to addressing an identified problem, it is unclear that the bill as written, given its ambiguous wording, will provide data that will meaningfully contribute to efforts to close the gender wage gap. Indeed, I am worried that this ambiguity could be exploited to encourage more litigation than pay equity.
Since the Equal Pay Act was signed into law in 2015, the Pay Equity Task Force, which is comprised of members from this administration, business, academia, labor, the legislature and pay equity advocates, has been engaged in analysis of the new law, as well as workplace and compensation policies that can lead to successful compliance with the Act. Guidance and recommendations coming out of the Task Force will assist companies around the state with assessing their current wage practices.
Sincerely,
Edmund G. Brown Jr.
SB 1063 (Hall, Chapter 866, Statutes of 2016), expanded the prohibitions in the California Equal Pay Act related to gender to include discrimination based on race or ethnicity.
AB 1676 (Campos, Chapter 856, Statutes of 2016), stipulates that prior salary cannot, by itself, justify any disparity in compensation.
SB 358 (Jackson, Chapter 546, Statutes 2015), prohibits public and private employers from paying any employee less than the wage rates paid to employees of the opposite sex in the same establishment for substantially similar work, when viewed as a composite of skill, effort and responsibility, and when performed under similar working conditions.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Assembly Appropriations Committee, this bill would result in “minor and absorbable costs for CalHR to gather required data; annual costs in the range of $250,000 to $300,000 for CalHR to coordinate with state agencies to develop a plan for addressing pay disparities within identified job classifications; and unknown costs across state agencies to update CalHR on the implementation of the plan to address pay disparities and hiring in identified job classifications.”
SUPPORT:
American Federation of State, County and Municipal Employees, AFL-CIO
Association of California State Supervisors
California Association of Professional Scientists
California Labor Federation
Professional Engineers in California Government
OPPOSITION:
None received.
ARGUMENTS IN SUPPORT:
The California Labor Federation states,
“Aggregate data on the wage gap women face is available. However, more nuanced data breaking down job category wages by gender and race has not been widely gathered. The data that is available does suggest a serious problem, as Harvard labor economist Claudia Goldin, for example, has found that the pay gap is widest in some of the highest paying fields. In order to appropriately target efforts to reduce and eliminate the wage gap, more of such data needs to be collected.
AB 1916 will begin to address this problem within state civil service by collecting relevant data for state employees. With this information and [the bill’s] required steps, we can analyze the numbers to produce effective plans to level the economic playing field for all state workers, regardless of gender or ethnicity.”
The Association of California State Supervisors writes, “[We] are committed to ensuring that all state employees, regardless of gender, race, or any other identifying characteristic, are paid equally if they perform substantially similar work. AB 1916 would ensure that all California state employees are paid equally and appropriately for performing substantially similar work functions.”
The California Association of State Scientists adds, “California state scientists work hard, and we expect the State of California to provide a safe and healthy workplace. However, even with California’s Equal Pay Act and the passage of SB 358, there is currently no specific provision requiring state agencies or CalHR to evaluate gender and ethnic pay disparities in the state workforce. This bill would strengthen California’s existing Equal Pay Act and ensure employees performing substantially equivalent work are paid fairly by requiring equal pay for work of a comparable character.”
ASSEMBLY THIRD READING
ATR Bill Id:AB 1916
Author:(Cooper)
As Amended Ver:May 25, 2018
Majority vote
Committee | Votes | Ayes | Noes |
Public Employees | 6-0 | Rodriguez, Brough, Cervantes, Cooley, Cooper, O'Donnell | |
Appropriations | 13-2 | Gonzalez Fletcher, Bigelow, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Gallagher, Obernolte |
SUMMARY: Requires an evaluation and report by the California Department of Human Resources (CalHR) on gender and ethnicity pay equity for all civil service classifications where there is an underrepresentation of women and minorities, among other provisions. Specifically, this bill:
1) Requires CalHR to, by December 31, 2019 and every two years thereafter, evaluate all state civil service classifications in the Personnel Classification Plan and prepare a detailed report on gender and ethnicity pay equity in each classification where there is underrepresentation of women and minorities.
2) Requires state agencies to provide statistical information to CalHR for each state civil service classification within that state agency.
3) Requires the report by CalHR to include a plan for each state agency to attain pay equity if a discrepancy is found, and a lawful plan consistent with existing law to recruit, attract, and retain women and minorities into positions where there is underrepresentation of those subgroups. CalHR is required to collaboratively develop the plan with each state agency.
4) Requires each state agency to submit information to CalHR regarding the agency's progress towards its plan for wage parity and increasing those underrepresented groups, including women and minorities. This includes a detailed and proposed timeline for meeting the goal of wage parity and creating a diverse workforce.
5) Requires, until January 1, 2030, CalHR to submit the report to the Legislature no later than January 1 following the completion of the report required by this bill and requires the presenting of the facts and findings of the report to the appropriate legislative budget subcommittees when the budget of that agency is before that subcommittee. The report must include the agency's efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency.
EXISTING LAW:
1) Requires CalHR to administer the state's Personnel Classification Plan which includes the allocation of every position to the appropriate class in the classification plan.
2) Requires CalHR to assess the adequacy of the Personnel Classification Plan and, as needed, recommend changes to the State Personnel Board. The recommendations must include a need to establish additional classes, or to abolish or alter existing classes.
3) Requires, pursuant to Government Code Section 19827.2, CalHR to review and analyze existing information, including studies from other jurisdictions relevant to setting salaries for "female-dominated jobs," and to provide this information to the appropriate legislative policy committees and the state's collective bargaining units.
5) Establishes the California Equal Pay Act (CEPA) which prohibits an employer from paying its employees less than employees of the opposite sex for equal work.
6) Establishes the California Fair Pay Act (CFPA) which amended the CFPA by requiring equal pay for employees who perform substantially similar work when viewed as a composite of skill, effort and responsibility, among other provisions.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in minor and absorbable costs for CalHR to gather required data; costs in the range of $250,000 to $300,000 every two years for CalHR to coordinate with state agencies to develop a plan for addressing pay disparities within identified job classifications; and, unknown, but likely significant costs across state agencies to update CalHR on the implementation of the plan to address pay disparities and hiring in identified job classifications. For example, costs to the Department of Justice are expected to exceed $400,000 each year that it must prepare a plan, as required by this bill.
COMMENTS: According to the author, "[e]ach year, the United States Census Bureau and the United States Bureau of Labor Statistics provide an estimate of the wage gap using annual earnings according to the Current Population Survey Annual Social and Economic Supplement data. Although, the gender wage gap has narrowed since the 1960s, after the passage of the federal Equal Pay Act of 1963 (EPA), female workers nationwide earned 78% of what male workers were paid as of 2013. According to the US Census Bureau, in 2015 women made 80 cents for every dollar earned by men.
'In 2014, California's statewide gender gap both public and private was 15.9% meaning women earned 84 cents on the dollar compared to men. This resulted in $37 billion in annual income lost. This disparity impacts not just these women's daily lives but also their retirement.
Women are the primary or sole earners in nearly 40% of families, and married women are the primary or co-earners in 2/3 of California families. In 2016, a report from the California Department of Human Resources found that women in the state workforce earn about 79.5 cents on the dollar compared to men.
'Last year I authored Assembly Bill (AB) 46, which expanded California's pay equity laws to the public sector. However, I believe we must evaluate all state civil service classifications and prepare a detailed report on gender and ethnicity pay equity and each classification where there is an underrepresentation of women and minorities to ensure we are really closing the wage gap. It is my goal by authoring AB 1916 that we achieve pay equity for all women and minorities in all job classifications in the public sector."
Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957 FN: 0003151
Date of Hearing: May 2, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1916
Author:(Cooper) – As Amended Ver:April 10, 2018
Policy Committee: | Public Employees, Retirement, and Social Security | Vote: | 6 - 0 |
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|
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill requires the California Department of Human Resources (CalHR), in coordination with state agencies, to develop an annual report on gender and ethnic pay disparities within state agencies. Specifically, this bill:
- Requires CalHR to evaluate all state civil service classifications and prepare a detailed report on gender and ethnicity pay equity within each classification where there is an underrepresentation of women and minorities.
- Requires each state agency to submit to CalHR statistical information for each civil service classification and requires CalHR to prepare a plan for each state agency to attain pay equity. State agencies must report to CalHR on their progress toward meeting the prepared plan.
- Requires CalHR to submit the report each year to the Legislature and requires the report’s facts and findings to be presented by each department or agency to the appropriate legislative budget subcommittees when before that committee.
FISCAL EFFECT:
- Minor and absorbable costs for CalHR to gather required data.
- Annual costs in the range of $250,000 to $300,000 for CalHR to coordinate with state agencies to develop a plan for addressing pay disparities within identified job classifications.
- Unknown costs across state agencies to update CalHR on the implementation of the plan to address pay disparities and hiring in identified job classifications.
COMMENTS:
- Purpose. According to the author, AB 1916 will help achieve pay equity for all women and minorities in the public sector. This bill aims to address the issue through a detailed report on gender and ethnic pay equity within civil service job classifications.
- Recent CalHR report. CalHR released a report in February 2018 titled “2015 Report on Women’s Earnings in California State Civil Service Classifications.” This report includes data on state civil service representation, by gender, for state employees from years 1989 through 2015. The report notes that the gender pay gap narrowed from 25.8% in 1989 to 19.9% in 2015, and that within specific job classifications, there was no pay gap in 2015. CalHR concludes that to further narrow the gender pay gap, there must be an increased number of women in higher-paying job classifications.
- Goals of the report. AB 1916, as drafted, requires a deeper look at pay disparities in those job classifications with an underrepresentation of women and minorities. This requirement mixes two distinct concepts that are both relevant to the study of pay equity: different pay for the same work, and an overrepresentation of men or white workers in higher-paying occupations. According to CalHR, the most important factor in the public sector pay gap is an overrepresentation of men in high-paying occupations. A report that focuses on that factor in greater detail may yield more useful information while reducing the reporting requirement’s complexity and costs.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 18, 2018
ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT, AND SOCIAL SECURITY
Freddie Rodriguez, Chair
ABPCA Bill Id:AB 1916 (
Author:Cooper) – As Amended Ver:April 10, 2018
SUBJECT: Civil service: Personnel Classification Plan: salary equalization
SUMMARY: Requires an evaluation and report by the California Department of Human Resources (CalHR) on gender and ethnicity pay equity, as specified, for all civil service classifications where there is an underrepresentation of women and minorities, among other provisions. Specifically, this bill:
1) Requires CalHR to annually evaluate all state civil service classifications in the Personnel Classification Plan and prepare a detailed report on gender and ethnicity pay equity in each classification where there is underrepresentation of women and minorities.
2) Requires state agencies to provide statistical information to CalHR, as specified, for each state civil service classification within that state agency.
3) Requires the report by CalHR to include a plan for each state agency to attain pay equity if a discrepancy is found, and a plan, as specified, to recruit, attract, and retain women and minorities into positions where there is underrepresentation of those subgroups. CalHR is required to collaboratively develop the plan with each state agency.
4) Requires each state agency to submit information to CalHR, as specified, regarding the agency’s progress towards its plan, as specified, for wage parity and increasing those underrepresented groups, including women and minorities. This includes a detailed and proposed timeline for meeting the goal of wage parity and creating a diverse workforce, as specified.
5) Requires, no later than January 1 of each year, CalHR to submit the report, as specified, to the Legislature, and the facts and finding from the report to be presented by each department or agency to the appropriate legislative budget subcommittees when each agency or department budget is before the subcommittee. Also requires that this report include the efforts towards meeting the goals for wage parity and increasing the number of women and minorities in the department or agency.
6) Requires, until January 1, 2030, CalHR to annually submit the report to the Legislature, as specified, no later than January 1. In addition, the facts and findings from the report for each state agency must be presented by the head of each state agency, or representative, to the appropriate legislative budget subcommittees when the budget of that agency is before that subcommittee.
The report must include the agency’s efforts toward meeting the goals for wage parity and increasing the number of women and minorities in the state agency, as specified.
EXISTING LAW:
1) Established CalHR pursuant to the Governor’s Reorganization Plan 1 (2011) which consolidated the state’s two personnel departments, combining the former Department of Personnel Administration with certain programs of the State Personnel Board.
2) Provides CalHR with responsibilities related to employee salaries and benefits, job classifications, civil rights, training, exams, recruitment and retention, and collective bargaining with the state’s 21 collective bargaining units.
3) Requires CalHR to administer the state’s Personnel Classification Plan which includes the allocation of every position to the appropriate class in the classification plan.
Also specifies that the allocation of a position to a class must be derived from, and determined by, the ascertainment of the position and based on the principle that all positions are to be included in the same class based on certain characteristics.
4) Requires CalHR to assess the adequacy of the Personnel Classification Plan and, as needed, recommend changes to the State Personnel Board. Such recommendations must include the need for the establishment of additional classes, or the abolishment or alteration of existing classes
5) Requires, pursuant to Section 19827.2 of the Government Code, CalHR to review and analyze existing information, including studies from other jurisdictions relevant to setting salaries for women-dominated jobs, and to provide this information to the appropriate legislative policy committees and the state’s collective bargaining units.
In performing the analysis, CalHR reviews salary, comparability of the value of the work, skill, effort, responsibility, and working conditions of those jobs.
6) Authorizes CalHR to designate an appointing power to allocate positions to the Personnel Classification Plan, as specified, and to audit position allocations. If CalHR finds that positions are inappropriately allocated, it may order corrective action to the appointing power, including, but not limited to, reallocating positions, revoking or restricting the appointing power’s ability to allocate positions.
7) Establishes the California Equal Pay Act (CEPA) which prohibits an employer from paying its employees less than employees of the opposite sex for equal work.
8) Establishes the California Fair Pay Act (CFPA) which amended the CFPA by requiring equal pay for employees who perform substantially similar work when viewed as a composite of skill, effort and responsibility, among other provisions.
Additional laws that have amended the CFPA more recently include those discussed under “Related/Prior Legislation” below.
FISCAL EFFECT: Unknown. This bill has been flagged as fiscal by Legislative Counsel.
COMMENTS: According to the author, “[e]ach year, the United States Census Bureau and the United States Bureau of Labor Statistics provide an estimate of the wage gap using annual earnings according to the Current Population Survey Annual Social and Economic Supplement data. Although, the gender wage gap has narrowed since the 1960s, after the passage of the federal Equal Pay Act of 1963 (EPA), female workers nationwide earned 78 percent of what male workers were paid as of 2013. According to the US Census Bureau, in 2015 women made 80 cents for every dollar earned by men.
‘In 2014, California’s statewide gender gap both public and private was 15.9 percent meaning women earned 84 cents on the dollar compared to men. This resulted in $37 billion in annual income lost. This disparity impacts not just these women’s daily lives but also their retirement.
Women are the primary or sole earners in nearly 40 percent of families, and married women are the primary or co-earners in 2/3 of California families.
‘In 2016, a report from the California Department of Human Resources found that women in the state workforce earn about 79.5 cents on the dollar compared to men.
‘Last year I authored Assembly Bill (AB) 46, which expanded California’s pay equity laws to the public sector. However, I believe we must evaluate all state civil service classifications and prepare a detailed report on gender and ethnicity pay equity and each classification where there is an underrepresentation of women and minorities to ensure we are really closing the wage gap.
‘It is my goal by authoring AB 1916 that we achieve pay equity for all women and minorities in all job classifications in the public sector.”
1) Responsibilities of CalHR
As of July 1, 2012, all nonmerit functions of the State Personnel Board moved to CalHR. Among other responsibilities, and for those most relevant to the purposes of this measure, CalHR is responsible for:
a) Labor relations, and represents the Governor as the employer, in employer-employee relations pursuant to the Dills Act, including collective bargaining with the state’s twenty-one collective bargaining units.
b) Personnel management, which CalHR administers the state’s classification plan, salaries, and manager and supervisor program, among other programs related to personnel.
c) Civil rights, where CalHR provides leadership and guidance to departments to protect the civil rights of all state employees.
d) Creating and administering the state’s civil service exam to provide a fair and open process to hire qualified candidates to serve the state.
2) Ongoing Civil Service Reform Efforts by the Administration
The Governor’s proposed budget for 2015-16 stated that administrative efforts were focused on updating and streamlining the state’s job classification; modernizing recruitment, examination and hiring practices; developing more robust employee management training programs; reforming probation policies; and, improving employee and management evaluation processes. These reform efforts became known as Civil Service Improvement (CSI).
The Governor’s proposed budget and the enacted budget for 2016-17 included a number of positions and a budgetary allocation to CalHR to develop and implement statewide solutions for workforce and succession planning, recruitment, training, and identified new areas for CSI.
The Governor’s proposed budget for 2017-18 discussed strategies to improve the state’s civil service system to enable state departments to quickly recruit, hire, train, and develop employees. The budget proposal included $2.8 million in reimbursement authority for CalHR to expand the capacity of the statewide training center. In addition, the budget proposal included trailer bill language related to ongoing class consolidation efforts towards increasing promotional opportunities for employees, and probationary periods, among other items. However, due to concerns expressed by CalHR stakeholders, the trailer bill was not included as part of the enacted budget.
The Governor’s recent 2018-19 Budget Summary offers an indication of the administration’s continued efforts regarding CSI. Specifically, the Governor’s Budget Summary states in part, “[i]n 2015, the Governor initiated CSI, a comprehensive strategy to systematically improve the civil service system.” These efforts also include a continued “…focus on consolidating the state’s multitude of job classifications to streamline the civil service system.” The Budget Summary also briefly discusses the number of classification types to be reviewed, including consolidation of a number of classifications in information technology.
Assembly Bill 1916 would establish another element to civil service reform, perhaps separately from CSI, towards planning and evaluation of the state’s civil service towards ensuring pay equity and the equality of pay scales for equivalent classifications.
3) Other Relevant Efforts
a) Salary Equalization – Sex, Race, and Ethnicity
Pursuant to Section 1197.5 of the Labor Code, public and private employers are prohibited from paying any employee at wage rates less than the rates paid to employees of the opposite sex, race or ethnicity in the same establishment for equal work on jobs the performance of which requires equal skill, effort and responsibility, and which are performed under similar working conditions, except where the payment is made pursuant to a seniority system, a merit system, a system which measures earnings by quantity or quality of production, or a differential based on any bona fide factor other than sex, race or ethnicity.
b) Closing the Gender Pay Equity Gap in Civil Service
Pursuant to existing law, CalHR released its “2015 Report on Women’s Earnings in California State Civil Service Classifications” in February 2018. The report conveys data on state civil service representation by gender for state employees from 1989 through 2015. In the overview of the report, CalHR states that, “[i]n recognizing the interests of both the Administration and the Legislature in achieving its goal [of closing the gender pay equity gap in state civil service], CalHR also is committed to better understanding the existing pay gap in median salary between men and women in state civil service and presenting strategies for state agencies to close the gap.”
In addition, the overview of the report provides the following key findings:
i) With women in state civil service branching out to higher paying job categories, the gender pay gap has improved, closing to 19.9 percent in 2015 from 25.8 percent in 1989. During that period, increases in the median salary of women civil service employees outpaced increases in the median salary for men in civil service. Within specific job classifications, there is no pay gap.
ii) The state civil service pay gap this year fell below the general national gap, 20 percent in 2015, but remains above the 14.2 percent gap for the state overall.
iii) Further narrowing the pay gap requires increasing the number, and representation, of women state employees in higher paying job classifications.
iv) California employs women in state civil service in a wider range of occupations than found in general California workforce and in the United States (U.S.) workforce.
v) The state civil service employs a larger percentage of women in science, technology, engineering and mathematics careers than found in California’s overall workforce and the national workforce.
vi) Women make up a percentage of the civil service that is higher than their presence in both the California and U.S. workforce.
For further information and details, this report can be found on CalHR’s website at http://www.calhr.ca.gov/Documents/ocr-women’s-earnings-2015.pdf
4) Related/Prior Legislation
Chapter 776, Statutes of 2016 (AB 46, Cooper) expands the California Equal Pay Equity Act to public sector employers.
Chapter 866, Statutes of 2016 (SB 1063, Hall) amends the Equal Pay Act to prohibit employers from paying employees a wage rate less than the rate paid to employees of a different race or ethnicity for substantially similar work.
Chapter 856, Statutes of 2016 (AB 1676, Campos and Gonzalez) provides that prior salary cannot, by itself, justify any disparity in compensation.
Chapter 546, Statutes 2015 (SB 358, Jackson), also known as the “California Equal Pay Act,” prohibits public and private employers from paying any employee at wage rates less than the rates paid to employees of the opposite sex, race or ethnicity in the same establishment for equal work on jobs the performance of which requires equal skill, effort and responsibility, and which are performed under similar working conditions.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file.
Opposition
None on file.
Analysis Prepared by: Michael Bolden / P.E.,R., & S.S. / (916) 319-3957
Discussed in Hearing
Senate Floor
Senate Standing Committee on Appropriations
Assembly Floor
Assembly Standing Committee on Public Employees, Retirement, and Social Security
Bill Author
Bill Co-Author(s):