Assembly Standing Committee on Labor and Employment

Committee on Labor and Employment is called to order. I'd like to remind all of you that we for our main witnesses, in support, two minutes each. For two witnesses and in opposition, two minutes each, two witnesses. We are going to begin as a Subcommitee and I'd like to call up Assemblymember Grayson on AB 1034.

Thank you, Madam Chair. And Members of Committee AB 1034 would extend the exemption sunset date for lawsuits originated under the private Attorney general's act. We know as paga for contractors in the building and construction trades that are party to a valid collective bargaining agreement.

We know also as CBA meeting specific or specified criteria and have negotiated with their local union to include the waiver in their CBA. The statute does not alter a local union's ability to decide to include or not include the PAga waiver in their CBA.

Including the waiver would continue to be subject to be a subject of bargaining at the local level for each union.

When a labor union and an employer in the building and construction trades enter into a valid collective bargaining agreement, existing law provides that those employers shall be exempt from PAGA claims provided the CBA includes the premium wage rates for overtime, an hourly wage not less than 30% more than minimum wage, a grievance and binding arbitration procedure to redress violation violations, a clear waiver of the requirements of PACA in an unambiguous terms authorization for the arbitrator to award any and all remedies available under PAGA.

So Section 203 of the Labor Management Relations act affirms that resolving labor disputes through collective bargaining agreements is the desirable method for settling grievance disputes related to the application or interpretation of an existing CBA. This Bill aligns with congressional intent by using the well established collective bargaining process to resolve disputes in lieu of PaGA.

AB 1034 will allow workers to continue to benefit from this important exemption by extending the current sunset in the law from 2028 to 2038. The measure is supported by the California Conference of Carpenters, Associated General Contractors, and the State Council of Laborers, among others. I respectfully ask for an aye vote at the appropriate time.

Thank you Mister Grayson.

First witness and support thank you, Madam Chair Members Eddie Bernacci, on behalf of the National Electrical Contractors Association, representing over 2000 signatory electrical contractors throughout the state.

As mentioned, this is a simple sunset extension, but this policy is of critical importance to the union signatory construction industry as CBA exemptions to things like PaGA is what allow our contractors to be competitive in the open marketplace while also providing robust health and welfare benefits and pension and health and welfare, and in addition to providing premium wage rates, I'll just add quickly.

Conversely, without efficiencies like this in our collective bargaining agreement, specifically when it relates to Pagae, we are positioned into double jeopardy where we have to utilize our collective bargaining grievance procedure in addition to defending the pocket claims. So we become even less competitive in the marketplace because we have to defend against both legal cases.

So for those reasons, we ask your aye vote. Thank you.

Before we take the next witness testimony, let's establish quorum. Let's call roll.

[Roll call]

Quorum has been established with motion 2nd. 2nd witness, please.

I'll take that as a cue, Scott Governor, on behalf of the Construction Employers Association and also sitting in for Danny Curtin, as the California Conference of Carpenters, in support. Thank you.

Thank you. Any further witnesses in support from the public, I'd ask that you give your name, your name, your organization and your position.

Madam Chair. Chris Walker. On behalf of the California Sheet Metal Air Conditioning Contractors in support. Thank you.

Thank you, Madam Chairman. Joe Cruz. On behalf of the California State Council of Laborers in support.

Thank you, Madam Chair. Brett Barrow. On behalf of United Contractors, the California Legislative Conference of the Plumbing, Heating, Piping Industry and the Western Line Constructors, in support. Thanks.

Thank you, Madam Chair. Matt Kremens. On behalf of the California Nevada Conference of Operating Engineers, strong support.

Thank you, Madam Chair. Paul Gladveldy. On behalf of the Associated General Contractors, strong support.

Thank you. Witnesses in opposition. Principal witnesses in opposition, seeing none. Any witnesses in public wishing to give testimony, in opposition, seeing none. Let's bring it back to the Members. Any questions, comments? We have a motion. And second, please call the roll.

The motion is recommend that Senate amendments be concurred in. [Roll call]

That motion is out. Thank you.

Thank you, Assembly Member Rubio.

Thank you, Madam Chair. And Members, I apologize. We are ping ponging today, so I ping ponged upstairs. Now, thank you for the opportunity to present. Let's see. Here we go. AB 224, which would extend the news carrier exemption from AB five until 2030.

I am thankful to our former Assembly labor chair for his most recent efforts, which this measure simply extends. The newspaper profession continues to face financial challenges resulting from less ad revenue to tech giants while transitioning to digital platforms and a decline in subscriptions.

These reasons compounded with the unique structure in which carriers contract with multiple publishers places stresses on the industry which are not seen elsewhere, hence why we are here today. By providing additional time for the transition, jobs for journalists, editors and news production workers will be protected while simultaneously supporting the current age of news media.

This measure has enjoyed unanimous bipartisan support through both Senate labor and the Senate Floor. With me today, I have Brittany Barsotti on behalf of our sponsor, the California News Publishers Association, to answer any technical questions. Thank you. And I respectfully ask for an aye vote.

Thank you, Miss Rubio. Good evening, Madam Chair, Members of the Committee, Brittany Barsati on behalf of the California News Publishers Association. As the Assembly Member mentioned, this Bill would simply extend the sunset an additional five years from then chair Kalra's Bill AB 1506 and respectfully ask for an aye vote. Thank you.

Any other witnesses in support? Witnesses in opposition begin when you are ready.

Good evening, Madam Chair and Members of the Committee. Yvonne Fernandez with the California Labor Federation. The newspaper industry is vital to California. We support protecting workers and funding the industry to ensure our communities are properly informed with statewide and local news.

However, we do oppose propping up the industry on the backs of workers, especially the most vulnerable and the lowest paid newspaper delivery drivers are not the reason behind the decline in the newspaper industry. We can attribute that decline to tech giants like Meta and Google workers delivering newspapers.

The very people who make up the backbone of the industry are being forced to be exempted from a law that provides protections around minimum wage, paid sick days, workers comp and reimbursements for key elements of their job, such as gas and car repairs, essentially everything that a worker needs for true protections.

Newspaper drivers were temporarily exempted from the law because the industry claimed to be transitioning. It's been five years and we are being asked to extend the exemption for an additional five years so the industry can continue misclassifying workers until the companies find a way to outright replacement drivers.

While newspaper drivers are exempted under the ABC test, under AB five they are covered by the Borrello test. While the Borrello test is meant to prevent misclassification, it is not nearly as strong as the ABC test. In the past 15 years, there have been several cases of misclassification of workers.

It's time to bring our newspaper drivers under the full protection of the law. An extension is unfair to newspapers like the Sacramento News and review that treats its delivery drivers as employees, and this would leave taxpayers to foot the Bill for the safety benefits for these workers they so desperately need and deserve.

For these reasons, we oppose AB 224.

Thank you. Any other witnesses in opposition thank you. Let's bring it back to the Members. Questions comments I do want to comment first, I want to acknowledge that the employment status of an employee makes a significant difference in how they are treated and determines what rights they are entitled to.

We also have to acknowledge that the pivotal role that newspapers and publishers hold in connecting the public to critical information, the press holds government accountable, provides transparency in our government and our safeguards for our democratic process. As policymakers, our decision must be rooted in data and facts.

I realize that we must make a decision today, but this exemption cannot go on forever.

I look forward to seeing the data and information such as the number of carriers utilized as independent contractors and as employees the average wage rate paid to carriers classified as independent contractors and as employees the number of carriers who are under a contract containing a minimum performance standards clause the number of carriers wage claims filed, if any, with a labor Commissioner or in a court of law.

I believe an informed government makes more sound decisions and these data points will help make those decisions. I will be supporting this measure today, but I do want to see accountability and transparency for these employees so that we can assure that workers are treated with the respect they absolutely deserve.

We have a motion and a second any thank you. Please take the roll.

Motion is recommend Senate amendments be concurred in. [Roll call]

That measure is out. Thank you. Next item, item three, SB 1162 Cortese Senator, when you are ready.

Thank you. Madam Chair and Members, I'm pleased to present SB 1162. This Bill is sponsored by the International Brotherhood of Electrical Workers.

The Bill enables labor Management Cooperation committees, otherwise known by known as LMCC's, to accurately verify workers have the appropriate training by requiring employers to identify the apprenticeship program by name, location and graduation date of all workers relied upon to satisfy the apprenticeship graduation percentage in their monthly compliance reports submitted to LMCC. So this is a compliance Bill.

By ensuring accurate identification, LMCCs can verify whether the worker meets the eligibility criteria in alignment with state regulations, the Bill outlines requirements for identifying those workers at the appropriate time. I'd respectfully ask for your aye vote. Joining us today is Martin Vindiola from Ibew.

Good evening, Madam Chair and Members of the Committee on Behalf of the California State Association of Electrical Workers. We are proud sponsors of SB 1162, which aims to enhance transparency and accountability in enforcing skilled and trained workforce requirements in public contracts and projects.

Current law mandates monthly compliance reports for public entities, but lack specific details needed to ensure proper adherence to skilled workforce standards. SB 1162 addresses this gap by requiring these reports to include detailed information on the apprenticeship program name, location, and graduation date of workers meeting the graduation percentage requirements under skilled and trained.

Additionally, it mandates the creation of a publicly accessible online database maintained by the division of apprenticeship standards, allowing stakeholders to verify the qualifications of workers using their name and graduation date.

This Bill is crucial for protecting public investments, improving enforcement by labor management cooperation committees, and supporting California's goals of fostering a skilled and trained workforce by strengthening compliance verification and enhancing public access to worker qualifications, SB 1162 ensures that public projects are completed by properly trained individuals, upholding the quality integrity of our state's construction and infrastructure efforts.

We respectfully urge an aye vote on SB 1162. Thank you.

Thank you very much. Any other witnesses in support? Name and organization, please. I'll move the Bill.

Good evening, Mister Chairman. Matt Kremens, on behalf of the California Nevada Conference of Operating Engineers, in support.

Thank you. Jeremy Smith here on behalf of the state Building and Construction Trace Council, also in support. Thank you very much.

Anyone else in support? Seeing none. Anyone in opposition? Seeing none. Bring it back to the Committee. Any questions from the Committee? Seeing none. We got a second.

Move the roll.

Madam Secretary, please call the roll.

[Roll call]

[Roll call]

That measures out. Thank you, Senator. Thank you all very much. Last and certainly not least, Senator Durazo with SB 1350. Ready when you are.

Thank you, Mister chair. I want to thank the Committee very much for their help and their analysis. Senate Bill 1350 will bring California into compliance with the federal OSHA standards by ensuring that domestic workers employed by agencies or other third party employers are protected by Cal OSHA.

Federal law requires state run safety plans be at least as effective as federal OSHA. Yet California OSHA protections have a broader exemption for household domestic work than the one contained in the federal law. We want to align California law with the federal standards.

That way, through SB 1350, we would give the Department of Occupational Safety and Health a clear mandate to protect the more than 175,000 domestic workers in agencies who work for home care as home care cleaning or nannies.

Since the governor's veto last year of my prior legislation, we have been in conversation with his office regarding the health and safety of domestic workers. This legislation is a product of those discussions with me here today to testify is Cynthia Gomez with Chirla. Thank you.

Thank you.

First two minutes, please.

Good afternoon, Mister chair and Members. My name is Cynthia Gomez, Deputy Director of state policy and advocacy with the Coalition for Humane Immigrant Rights. Chitla. For years, Chitla has worked to increase worker rights and protections for domestic workers and day laborers.

We're a founding Member of the California Domestic Workers Coalition and a current Member of the Coalition Committee. Domestic workers are largely immigrants, women, and people of color, and have historically been excluded from the various worker protection rights that other workers enjoy.

SB 1350, as amended, would align Cal OSHA with federal OSHA standards that would include agency based domestic work under health and safety standards.

A study by the UCLA labor and Occupational Safety and Health program found that 85% of domestic workers surveyed expressed injuries associated with pain, and 94% continue to work despite their injuries for fear of job loss.

Aligning Cal OSHA standards with federal OSHA standards is a step in the right direction to end the exclusion of domestic workers from health and safety standards. We thank you for your consideration of this Bill and respectfully request your aye vote.

Thank you very much. Anyone else in support of SB 1350? Name and organization, please.

Samantha Guerrero, state policy intern here. On behalf of cheerlead, strong support.

Thank you. Anyone else seeing none. Anybody in opposition to SB 1350? Seeing none. Bring it back to the Committee. The motion is second. Madam Secretary, please call the roll.

[Roll call]

That measure's out. We'll leave it open for absent Members for a little bit.

Thank you, Members.

Colleagues. We're going to start at the top of the file real quick. Mister Lee.

Thank you, Mister chair.

Mister Lee.

AB 224 assemblymember Lee. Lee I AB 1034 Lee. Lee.

I think we're good.

All right, let's open the roll on for missing Members votes.

[Roll call]

All right, let's open the roll for missing Members.

[Roll call]

Thank you, Members. This meeting is adjourned.