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AB-2079 Janitorial workers: sexual violence and harassment prevention training.(2017-2018)

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Date Published: 09/05/2018 04:00 AM
AB2079:v93#DOCUMENT

Enrolled  September 04, 2018
Passed  IN  Senate  August 29, 2018
Passed  IN  Assembly  August 30, 2018
Amended  IN  Senate  August 24, 2018
Amended  IN  Senate  August 22, 2018
Amended  IN  Senate  June 20, 2018
Amended  IN  Assembly  April 17, 2018
Amended  IN  Assembly  March 19, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2079

Introduced by Assembly Member Gonzalez Fletcher
(Coauthor: Assembly Member Kalra)

February 07, 2018

An act to amend Sections 1421, 1428, 1429, 1429.5, 1430, and 1434 of the Labor Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 2079, Gonzalez Fletcher. Janitorial workers: sexual violence and harassment prevention training.
Existing law establishes the Division of Labor Standards Enforcement within the Department of Industrial Relations. The division is headed by the Labor Commissioner and the department is headed by the Director of Industrial Relations. Existing law establishes certain protections for janitorial workers, including a requirement that the division, by January 1, 2019, establish a biennial in-person sexual violence and harassment prevention training requirement for certain employees and employers with the assistance of a prescribed advisory committee to be convened by the director. Existing law, effective July 1, 2018, requires employers of at least one employee and one or more covered workers, as defined, who provide janitorial services, as specified, to register with the commissioner annually and prohibits them from conducting business without a registration. Existing law requires an application for registration to be in a form prescribed by the commissioner and subscribed and sworn to by the employer, as specified.
This bill would prohibit the division from approving a registration, as described above, if the employer does not include in his or her written application the name of any subcontractor or franchise servicing contracts affiliated with a branch location and the number of subcontracted or franchise employees servicing each of those contracts, the total number of employees working out of a listed branch office, and the address of each work location serviced by a branch office.
The bill would require the director, by July 1, 2019, to also convene an advisory committee, with membership as prescribed, to develop requirements for qualified organizations and peer trainers that employers would be required to use to provide the biennial training described above. The bill would require the division to adopt advisory committee requirements for qualified organizations and peer trainers by January 1, 2020. The bill would require the division to require employers subject to the training requirements to use the training content created by the committee. The bill would require such an employer, upon request, to provide to an employee a copy of all training materials used during a training he or she attended. The bill would require employers to use a qualified organization from the list of qualified organizations developed and maintained by the director to provide the required training, and would require qualified organizations to provide peer trainers for employers to use in the training, as specified. The bill would require the employer to pay the qualified organization. The bill would require the qualified organization to ensure that the peer trainer is paid at least twice the state minimum wage per hour. The bill would require an employer to document and certify compliance with the training to nonsupervisors and payment of the qualified organization, as specified, on a form prescribed by, and available to, the division. A qualified organization would be required to submit a specified report to the director of a training within 48 hours of completion. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.
The bill would require the advisory committee to approve and recommend the qualified organizations to the director. The bill would authorize a qualified organization to work with a training partner, as defined, to provide the required training. The bill would prescribe certain minimum qualifications for qualified organizations and peer trainers. The bill would require the director to develop, maintain, and update as prescribed a list of qualified organizations and qualified peer trainers, as recommended by the advisory committee. The bill would authorize the director, with the recommendation of the advisory committee, to waive the requirement to use a qualified organization or qualified peer trainer, as specified.
Existing law prohibits the division from registering or renewing the registration of an employer, as described above, in specified circumstances.
This bill would, additionally, prohibit the division from registering or renewing the registration of an employer if the employer has not fully satisfied a final judgment for certain unlawful employment practices, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would incorporate additional changes to Sections 1421, 1429, 1429.5, and 1434 of the Labor Code proposed by AB 2732 to be operative only if this bill and AB 2732 are enacted and this bill is enacted last.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 This act shall be known, and may be cited, as the Janitor Survivor Empowerment Act.

SEC. 2.

 Section 1421 of the Labor Code is amended to read:

1421.
 Every employer shall keep accurate records for three years, showing all of the following:
(a) The names and addresses of all employees engaged in rendering janitorial services for the employer.
(b) The hours worked daily by each employee, including the times the employee begins and ends each work period.
(c) The wage and wage rate paid each payroll period.
(d) The age of all minor employees.
(e) Any other conditions of employment.

SEC. 2.5.

 Section 1421 of the Labor Code is amended to read:

1421.
 Every employer shall keep accurate records for three years, showing all of the following:
(a) The names and addresses of all employees engaged in rendering janitorial services for the employer.
(b) The hours worked daily by each employee, including the times the employee begins and ends each work period.
(c) The wage and wage rate paid each payroll period.
(d) The age of all minor employees.
(e) Any other conditions of employment.
(f) The names, addresses, periods of work, and compensation paid to all other covered workers.

SEC. 3.

 Section 1428 of the Labor Code is amended to read:

1428.
 An employer shall not conduct any business to provide janitorial services without complying with the registration requirements of this part. The commissioner may revoke a registration if he or she finds an employer to be out of compliance with any requirement of this part or to have failed to satisfy any of the conditions of Section 1429.

SEC. 4.

 Section 1429 of the Labor Code is amended to read:

1429.
 The Division of Labor Standards Enforcement shall not approve the registration of any employer until all of the following conditions are satisfied:
(a) The employer has executed a written application, in a form prescribed by the commissioner and subscribed and sworn to by the employer, containing the following:
(1) The name of the business entity and, if applicable, its fictitious or “doing business as” name.
(2) The form of the business entity and, if a corporation, all of the following:
(A) The date of incorporation.
(B) The state in which incorporated.
(C) If a foreign corporation, the date the articles of incorporation were filed with the California Secretary of State.
(D) Whether the corporation is in good standing with the California Secretary of State.
(3) The federal employer identification number (FEIN) and the state employer identification number (SEIN) of the business.
(4) The address of the business and the telephone number and, if applicable, the addresses and telephone numbers of any branch locations and the name of any subcontractor or franchise servicing contracts affiliated with a branch location and the number of subcontracted or franchise employees servicing each of those contracts, the total number of employees working out of each listed branch office, and the address of each work location serviced by a branch office.
(5) Whether the application is for a new or renewal registration and, if the application is for a renewal, the prior registration number.
(6) The names, residential addresses, telephone numbers, and social security numbers of the following persons:
(A) All corporate officers, if the business entity is a corporation.
(B) All persons exercising management responsibility in the applicant’s office, regardless of form of business entity.
(C) All persons, except bona fide employees on regular salaries, who have a financial interest of 10 percent or more in the business, regardless of the form of business entity, and the actual percent owned by each of those persons.
(7) The policy number, effective date, expiration date, and name and address of the carrier of the applicant business’ current workers’ compensation coverage.
(8) (A) Whether the employer and any persons named in response to subparagraph (A), (B), or (C) of paragraph (6) presently:
(i) Owe any unpaid wages.
(ii) Have unpaid judgments outstanding.
(iii) Have any liens or suits pending in court against himself or herself.
(iv) Owe payroll taxes, or personal, partnership, or corporate income taxes, Social Security taxes, or disability insurance.
(B) An applicant who answers affirmatively to any item described in subparagraph (A) shall provide, as part of the application, additional information on the unpaid amounts, including the name and address of the party owed, the amount owed, and any existing payment arrangements.
(9) (A) Whether the employer and any persons named in response to subparagraph (A), (B), or (C) of paragraph (6) have ever been cited or assessed any penalty for violating any provision of this code.
(B) An applicant who answers affirmatively to any item described in subparagraph (A) shall provide additional information, as part of the application, on the date, nature of citation, amount of penalties assessed for each citation, and the disposition of the citation, if any. The application shall describe any appeal filed. If the citation was not appealed, or if it was upheld on appeal, the applicant shall state whether the penalty assessment was paid.
(10) Effective January 1, 2020, all new applications for registration and renewal of registration shall complete the sexual violence and harassment prevention training requirements prescribed by the division and developed pursuant to Section 1429.5.
(11) Such other information as the commissioner requires for the administration and enforcement of this part.
(b) The employer has paid a registration fee to the Division of Labor Standards Enforcement pursuant to Section 1427.
(c) Notwithstanding any other law, violation of this section shall not be a crime.

SEC. 4.5.

 Section 1429 of the Labor Code is amended to read:

1429.
 The Division of Labor Standards Enforcement shall not approve the registration of any employer until all of the following conditions are satisfied:
(a) The employer has executed a written application, in a form prescribed by the commissioner and subscribed and sworn to by the employer, containing the following:
(1) The name of the business entity and, if applicable, its fictitious or “doing business as” name.
(2) The form of the business entity and, if a corporation, all of the following:
(A) The date of incorporation.
(B) The state in which incorporated.
(C) If a foreign corporation, the date the articles of incorporation were filed with the California Secretary of State.
(D) Whether the corporation is in good standing with the California Secretary of State.
(3) The federal employer identification number (FEIN) and the state employer identification number (SEIN) of the business.
(4) The address of the business and the telephone number and, if applicable, the addresses and telephone numbers of any branch locations and the name of any subcontractor or franchise servicing contracts affiliated with a branch location and the number of subcontracted or franchise employees servicing each of those contracts, the total number of employees working out of each listed branch office, and the address of each work location serviced by a branch office.
(5) Whether the application is for a new or renewal registration and, if the application is for a renewal, the prior registration number.
(6) The names, residential addresses, telephone numbers, and social security numbers of the following persons:
(A) All corporate officers, if the business entity is a corporation.
(B) All persons exercising management responsibility in the applicant’s office, regardless of form of business entity.
(C) All persons, except bona fide employees on regular salaries, who have a financial interest of 10 percent or more in the business, regardless of the form of business entity, and the actual percent owned by each of those persons.
(7) The policy number, effective date, expiration date, and name and address of the carrier of the applicant business’ current workers’ compensation coverage.
(8) (A) Whether the employer and any persons named in response to subparagraph (A), (B), or (C) of paragraph (6) presently:
(i) Owe any unpaid wages.
(ii) Have unpaid judgments outstanding.
(iii) Have any liens or suits pending in court against himself or herself.
(iv) Owe payroll taxes, or personal, partnership, or corporate income taxes, Social Security taxes, or disability insurance.
(B) An applicant who answers affirmatively to any item described in subparagraph (A) shall provide, as part of the application, additional information on the unpaid amounts, including the name and address of the party owed, the amount owed, and any existing payment arrangements.
(9) (A) Whether the employer and any persons named in response to subparagraph (A), (B), or (C) of paragraph (6) have ever been cited or assessed any penalty for violating any provision of this code.
(B) An applicant who answers affirmatively to any item described in subparagraph (A) shall provide additional information, as part of the application, on the date, nature of citation, amount of penalties assessed for each citation, and the disposition of the citation, if any. The application shall describe any appeal filed. If the citation was not appealed, or if it was upheld on appeal, the applicant shall state whether the penalty assessment was paid.
(10) Effective January 1, 2020, all new applications for registration and renewal of registration shall demonstrate completion of the sexual violence and harassment prevention training requirements prescribed by the division and developed pursuant to Section 1429.5 by providing a written attestation to the commissioner that the training has been provided as required.
(11) Such other information as the commissioner requires for the administration and enforcement of this part.
(b) The employer has paid a registration fee to the Division of Labor Standards Enforcement pursuant to Section 1427.
(c) Notwithstanding any other law, violation of this section shall not be a crime.

SEC. 5.

 Section 1429.5 of the Labor Code is amended to read:

1429.5.
 (a) The Division of Labor Standards Enforcement shall establish a biennial in-person sexual violence and harassment prevention training requirement for employees and employers covered by this part by January 1, 2019. To assist in developing these standards, the director shall convene an advisory committee to recommend requirements for a sexual harassment prevention training program. The advisory committee shall be composed of representatives of the Division of Labor Standards Enforcement, the Division of Occupational Safety and Health, and the Department of Fair Employment and Housing, and shall also include representatives from a recognized or certified collective bargaining agent that represents janitorial workers, employers, labor-management groups in the janitorial industry, sexual assault victims advocacy groups, and other related subject matter experts. The director shall convene the advisory committee on or before July 1, 2017. The advisory committee shall consider the requirements of Section 12950.1 of the Government Code when developing the recommended standard. The Division of Labor Standards Enforcement shall propose the requirements for the sexual violence and harassment prevention training requirement no later than January 1, 2018.
(b) To assist in refining the standards described in subdivision (a), the director shall convene an advisory committee to develop requirements for qualified organizations and peer trainers that employers covered by this part shall use to provide the training required. The training provided under this section shall be in lieu of, and not in addition to, the requirements for training under the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code). The advisory committee shall be composed of representatives of the Division of Labor Standards Enforcement, the Division of Occupational Safety and Health, and the Department of Fair Employment and Housing, the Department of Consumer Affairs, and shall also include representatives from a recognized or certified collective bargaining agent that represents janitorial workers, employers, labor-management groups in the janitorial industry, sexual assault victims advocacy groups, and other related subject matter experts. The director shall convene the advisory committee no later than July 1, 2019. The Division of Labor Standards Enforcement shall adopt the requirements for the qualified organizations and peer trainers no later than January 1, 2020.
(c) The Division of Labor Standards Enforcement shall require employers covered by this part subject to the biennial training requirement to provide the training content created by the advisory committee.
(d) An employer covered by this part, upon employee request, shall provide to the employee a copy of all training materials used during a training he or she attended.
(e) Employers covered by this part subject to the biennial training requirement shall be required to use a qualified organization from the list of qualified organizations developed and maintained by the director to provide the required training to nonsupervisors. Qualified organizations shall provide peer trainers that employers covered by this part shall use to provide the required training to nonsupervisors, in addition to the trainer or trainer educators qualified to provide training under Section 12950.1 of the Government Code. The employer shall be required to pay the qualified organization. The qualified organization shall ensure that the peer trainer is paid an hourly rate of at least twice the state minimum wage per hour to cover the peer trainer’s regular wages. The hourly rate shall be reviewed every five years by the advisory committee. A covered employer shall be required to document compliance with the training requirement by completing and signing a form, to be created by the Division of Labor Standards Enforcement, certifying that the training was conducted and that the qualified organization was paid in full, and the form shall be produced upon request by the Division of Labor Standards Enforcement. A qualified organization shall submit a report to the director of a training within 48 hours of completion, and the report shall include the names of employers and employees trained and shall identify management and supervisors.
(f) The advisory committee shall approve and recommend the qualified organizations to the director. A qualified organization may work with a training partner to provide the required training. As used in this subdivision, “training partner” means a nonprofit or Taft-Hartley labor management organization that has an established contractual relationship with a qualified organization to provide training required under this part or to provide education and training to peer trainers. A qualified organization, on its own or through its training partners, shall:
(1) Have at least 100 qualified peer trainers or educators.
(2) Have at least five years of experience in training on issues specific to sexual harassment and assault or in workplace education within the janitorial or property service industry.
(3) Have at least five years of experience in coordinating and managing statewide technical assistance and training efforts.
(4) Have access to local and regional sexual violence-related trauma services and resources for local referrals documented through letters of support from service providers.
(5) Be committed to ongoing education and development as documented by a minimum of 10 hours of professional development each year for qualified organization staff in areas of research and strategies to prevent and respond to sexual assault and sexual harassment.
(g) To be qualified as a peer trainer under this section, a person shall have the training and experience necessary to train employees and employers and shall, at the minimum, have the following qualifications:
(1) At least 40 hours of advocate training in the following:
(A) Survivor-centered and trauma-informed principles and techniques.
(B) The long-term effects of sexual trauma and the intersection of discrimination, oppression, and sexual violence.
(C) The availability of local, state, and national resources for survivors of sexual violence.
(D) Interactive teaching strategies that engage across multiple literacy levels.
(E) Conducting discrimination, retaliation, and sexual harassment prevention training.
(F) Responding to sexual harassment complaints or other discrimination complaints.
(G) Employer responsibility to conduct investigations of sexual harassment complaints.
(H) Advising employees regarding discrimination, retaliation, and sexual harassment prevention.
(2) Have two years of nonsupervisory work experience in the janitorial or property service industry and be employed in the industry in a nonsupervisory capacity.
(3) Be culturally competent and fluent in the language or languages that the relevant employees understand.
(h) The director shall develop and maintain a list of qualified organizations and qualified peer trainers as recommended by the advisory committee. The list shall be updated by the director as recommended by the advisory committee every three years.
(i) The advisory committee shall meet every three years to review and update the list of qualified organizations and qualified peer trainers.
(j) The advisory committee may recommend to the director to waive the requirement to use a qualified organization or qualified peer trainer in a specific county. The director, with the recommendation of the advisory committee, may grant a waiver, if it is demonstrated that a qualified peer trainer or qualified organization cannot provide the training in the county. If a waiver is granted for a county, an employer in the county may use a trainer as prescribed by the Department of Fair Employment and Housing with respect to sexual harassment training and education.

SEC. 5.5.

 Section 1429.5 of the Labor Code is amended to read:

1429.5.
 (a) The Division of Labor Standards Enforcement shall establish a biennial in-person sexual violence and harassment prevention training requirement for covered workers and employers covered by this part by January 1, 2019. To assist in developing these standards, the director shall convene an advisory committee to recommend requirements for a sexual harassment prevention training program. The advisory committee shall be composed of representatives of the Division of Labor Standards Enforcement, the Division of Occupational Safety and Health, and the Department of Fair Employment and Housing, and shall also include representatives from a recognized or certified collective bargaining agent that represents janitorial workers, employers, labor-management groups in the janitorial industry, sexual assault victims advocacy groups, and other related subject matter experts. The director shall convene the advisory committee on or before July 1, 2017. The advisory committee shall consider the requirements of Section 12950.1 of the Government Code when developing the recommended standard. The Division of Labor Standards Enforcement shall propose the requirements for the sexual violence and harassment prevention training requirement no later than January 1, 2018.
(b) To assist in refining the standards described in subdivision (a), the director shall convene an advisory committee to develop requirements for qualified organizations and peer trainers that employers covered by this part shall use to provide the training required. The training provided under this section shall be in lieu of, and not in addition to, the requirements for training under the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code). The advisory committee shall be composed of representatives of the Division of Labor Standards Enforcement, the Division of Occupational Safety and Health, and the Department of Fair Employment and Housing, the Department of Consumer Affairs, and shall also include representatives from a recognized or certified collective bargaining agent that represents janitorial workers, employers, labor-management groups in the janitorial industry, sexual assault victims advocacy groups, and other related subject matter experts. The director shall convene the advisory committee no later than July 1, 2019. The Division of Labor Standards Enforcement shall adopt the requirements for the qualified organizations and peer trainers no later than January 1, 2020.
(c) The Division of Labor Standards Enforcement shall require employers covered by this part subject to the biennial training requirement to provide the training content created by the advisory committee.
(d) An employer covered by this part, upon employee request, shall provide to the employee a copy of all training materials used during a training he or she attended.
(e) Employers covered by this part subject to the biennial training requirement shall be required to use a qualified organization from the list of qualified organizations developed and maintained by the director to provide the required training to nonsupervisors. Qualified organizations shall provide peer trainers that employers covered by this part shall use to provide the required training to nonsupervisors, in addition to the trainer or trainer educators qualified to provide training under Section 12950.1 of the Government Code. The employer shall be required to pay the qualified organization. The qualified organization shall ensure that the peer trainer is paid an hourly rate of at least twice the state minimum wage per hour to cover the peer trainer’s regular wages. The hourly rate shall be reviewed every five years by the advisory committee. A covered employer shall be required to document compliance with the training requirement by completing and signing a form, to be created by the Division of Labor Standards Enforcement, certifying that the training was conducted and that the qualified organization was paid in full, and the form shall be produced upon request by the Division of Labor Standards Enforcement. A qualified organization shall submit a report to the director of a training within 48 hours of completion, and the report shall include the names of employers and employees trained and shall identify management and supervisors.
(f) The advisory committee shall approve and recommend the qualified organizations to the director. A qualified organization may work with a training partner to provide the required training. As used in this subdivision, “training partner” means a nonprofit or Taft-Hartley labor management organization that has an established contractual relationship with a qualified organization to provide training required under this part or to provide education and training to peer trainers. A qualified organization, on its own or through its training partners, shall:
(1) Have at least 100 qualified peer trainers or educators.
(2) Have at least five years of experience in training on issues specific to sexual harassment and assault or in workplace education within the janitorial or property service industry.
(3) Have at least five years of experience in coordinating and managing statewide technical assistance and training efforts.
(4) Have access to local and regional sexual violence-related trauma services and resources for local referrals documented through letters of support from service providers.
(5) Be committed to ongoing education and development as documented by a minimum of 10 hours of professional development each year for qualified organization staff in areas of research and strategies to prevent and respond to sexual assault and sexual harassment.
(g) To be qualified as a peer trainer under this section, a person shall have the training and experience necessary to train employees and employers and shall, at the minimum, have the following qualifications:
(1) At least 40 hours of advocate training in the following:
(A) Survivor-centered and trauma-informed principles and techniques.
(B) The long-term effects of sexual trauma and the intersection of discrimination, oppression, and sexual violence.
(C) The availability of local, state, and national resources for survivors of sexual violence.
(D) Interactive teaching strategies that engage across multiple literacy levels.
(E) Conducting discrimination, retaliation, and sexual harassment prevention training.
(F) Responding to sexual harassment complaints or other discrimination complaints.
(G) Employer responsibility to conduct investigations of sexual harassment complaints.
(H) Advising employees regarding discrimination, retaliation, and sexual harassment prevention.
(2) Have two years of nonsupervisory work experience in the janitorial or property service industry and be employed in the industry in a nonsupervisory capacity.
(3) Be culturally competent and fluent in the language or languages that the relevant employees understand.
(h) The director shall develop and maintain a list of qualified organizations and qualified peer trainers as recommended by the advisory committee. The list shall be updated by the director as recommended by the advisory committee every three years.
(i) The advisory committee shall meet every three years to review and update the list of qualified organizations and qualified peer trainers.
(j) The advisory committee may recommend to the director to waive the requirement to use a qualified organization or qualified peer trainer in a specific county. The director, with the recommendation of the advisory committee, may grant a waiver, if it is demonstrated that a qualified peer trainer or qualified organization cannot provide the training in the county. If a waiver is granted for a county, an employer in the county may use a trainer as prescribed by the Department of Fair Employment and Housing with respect to sexual harassment training and education.

SEC. 6.

 Section 1430 of the Labor Code is amended to read:

1430.
 The Division of Labor Standards Enforcement shall not register or renew the registration of an employer in any of the following circumstances:
(a) The employer has not fully satisfied any final judgment for unpaid wages due to an employee or former employee of a business for which the employer is required to register under this part.
(b) The employer has failed to remit the proper amount of contributions required by the Unemployment Insurance Code or the Employment Development Department has made an assessment for those unpaid contributions against the employer that has become final and the employer has not fully paid the amount of delinquency for those unpaid contributions.
(c) The employer has failed to remit the amount of Social Security and Medicare tax contributions required by the Federal Insurance Contributions Act (FICA) to the Internal Revenue Service and the employer has not fully paid the amount or delinquency for those unpaid contributions.
(d) The employer has not fully satisfied any final judgment for a violation of Section 12940 of the Government Code that is due to an employee or former employee of a business for which the employer is required to register under this part.

SEC. 7.

 Section 1434 of the Labor Code is amended to read:

1434.
 A successor employer is liable for any wages and penalties its predecessor employer owes to any of the predecessor employer’s former employee or employees, if the successor employer meets any of the following criteria:
(a) Uses substantially the same workforce to offer substantially the same janitorial services as the predecessor employer. This factor does not apply to employers who maintain the same workforce pursuant to Chapter 4.5 (commencing with Section 1060) of Part 3.
(b) Shares in the ownership, management, control of the labor relations, or interrelations of business operations with the predecessor employer.
(c) Employs in a managerial capacity any person who directly or indirectly controlled the wages, hours, or working conditions of the affected employees of the predecessor employer.
(d) Is an immediate family member of any owner, partner, officer, or director of the predecessor employer of any person who had a financial interest in the predecessor employer.

SEC. 7.5.

 Section 1434 of the Labor Code is amended to read:

1434.
 A successor employer is liable for any wages and penalties its predecessor employer owes to any of the predecessor employer’s former workforce, if the successor employer meets any of the following criteria:
(a) Uses substantially the same workforce to offer substantially the same janitorial services as the predecessor employer. This factor does not apply to employers who maintain the same workforce pursuant to Chapter 4.5 (commencing with Section 1060) of Part 3.
(b) Shares in the ownership, management, control of the labor relations, or interrelations of business operations with the predecessor employer.
(c) Employs in a managerial capacity any person who directly or indirectly controlled the wages, hours, or working conditions of the affected workforce of the predecessor employer.
(d) Is an immediate family member of any owner, partner, officer, or director of the predecessor employer of any person who had a financial interest in the predecessor employer.

SEC. 8.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 9.

 Section 2.5 of this bill incorporates amendments to Section 1421 of the Labor Code proposed by both this bill and Assembly Bill 2732. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 1421 of the Labor Code, and (3) this bill is enacted after Assembly Bill 2732, in which case Section 2 of this bill shall not become operative.

SEC. 10.

 Section 4.5 of this bill incorporates amendments to Section 1429 of the Labor Code proposed by both this bill and Assembly Bill 2732. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 1429 of the Labor Code, and (3) this bill is enacted after Assembly Bill 2732, in which case Section 4 of this bill shall not become operative.

SEC. 11.

 Section 5.5 of this bill incorporates amendments to Section 1429.5 of the Labor Code proposed by both this bill and Assembly Bill 2732. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 1429.5 of the Labor Code, and (3) this bill is enacted after Assembly Bill 2732, in which case Section 5 of this bill shall not become operative.

SEC. 12.

 Section 7.5 of this bill incorporates amendments to Section 1434 of the Labor Code proposed by both this bill and Assembly Bill 2732. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2019, (2) each bill amends Section 1434 of the Labor Code, and (3) this bill is enacted after Assembly Bill 2732, in which case Section 7 of this bill shall not become operative.