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AB-3216 Unemployment: rehiring and retention: state of emergency.(2019-2020)



Current Version: 09/04/20 - Enrolled

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SECTION 1.

 Section 2810.8 is added to the Labor Code, to read:

2810.8.
 (a) For purposes of this section:
(1) “Airport” means as any area of land or water used or intended for landing or takeoff of aircraft including appurtenant area used or intended for airport buildings, facilities, as well as rights of way together with the buildings and facilities within the State of California, excluding any military base or federally operated facility.
(2) “Airport hospitality operation” means a business that prepares, delivers, inspects, or provides any other service in connection with the preparation of, food or beverage for aircraft crew or passengers at an airport, or that provides food and beverage, retail, or other consumer goods or services to the public at an airport. The term airport hospitality operation does not include an air carrier certificated by the Federal Aviation Administration.
(3) “Airport service provider” means a business that performs, under contract with a passenger air carrier, airport facility management, or airport authority, functions on the property of the airport that are directly related to the air transportation of persons, property, or mail, including, but not limited to, the loading and unloading of property on aircraft, assistance to passengers under Part 382 (commencing with Section 382.1) of Title 14 of the Code of Federal Regulations, security, airport ticketing and check-in functions, ground-handling of aircraft, aircraft cleaning and sanitization functions, and waste removal. The term “airport service provider” does not include an air carrier certificated by the Federal Aviation Administration.
(4) “Building service” means janitorial, building maintenance, or security services.
(5) “Change in control” means any sale, assignment, transfer, contribution, or other disposition of all or substantially all of the assets used in the operation of an enterprise or a discrete portion of the enterprise that continues in operation as an enterprise, or a controlling interest, including by consolidation, merger, or reorganization, of the incumbent employer or any person who controls the incumbent employer.
(6) “Eligible employee” means any individual (A) whose primary place of employment is at an enterprise subject to a change in control, (B) who is employed directly by the incumbent employer, or by an employer who has contracted with the incumbent employer to provide services at the enterprise subject to a change in control, and (C) who has worked for the incumbent employer for at least one month prior to the execution of the transfer document. “Eligible employee” does not include a managerial, supervisory, or confidential employee.
(7) “Employee” means any individual who in a particular week performs at least two hours of work for an employer.
(8) “Employer” means any person, including a corporate officer or executive, who directly or indirectly or through an agent or any other person, including through the services of a temporary service or staffing agency or similar entity, owns or operates an enterprise and employs or exercises control over the wages, hours, or working conditions of any employee.
(9) “Employment commencement date” means the date on which an eligible employee retained by the successor employer pursuant to this section commences work for the successor employer in exchange for benefits and compensation under the terms and conditions established by the successor employer or as required by law.
(10) “Enterprise” means a hotel, private club, event center, airport hospitality operation, airport service provider, or the provision of building service to office, retail, or other commercial buildings.
(11) “Event center” means a publicly or privately owned structure of more than 50,000 square feet or 1,000 seats that is used for the purposes of public performances, sporting events, business meetings, or similar events, and includes concert halls, stadiums, sports arenas, racetracks, coliseums, and convention centers. The term “event center” also includes any contracted, leased, or sublet premises connected to or operated in conjunction with the event center’s purpose, including food preparation facilities, concessions, retail stores, restaurants, bars, and structured parking facilities.
(12) “Hotel” means a residential building that is designated or used for lodging and other related services for the public, and containing 50 or more guest rooms, or suites of rooms (adjoining rooms do not constitute a suite of rooms). “Hotel” also includes any contracted, leased, or sublet premises connected to or operated in conjunction with the building’s purpose, or providing services at the building. The number of guest rooms, or suites of rooms, shall be calculated based on the room count on the opening of the hotel or on December 31, 2019, whichever is greater.
(13) “Incumbent employer” means a person that owns, controls, or operates an enterprise subject to a change in control prior to the change in control.
(14) “Laid-off employee” means any employee who was employed by the employer for 6 months or more in the 12 months preceding the state of emergency giving rise to the application of this section, and whose most recent separation from active service was due to a public health directive, government shutdown order, lack of business, a reduction in force, or other economic, nondisciplinary reason related to the state of emergency.
(15) “Length of service” means the total of all periods of time during which an employee has been in active service with the employer, including periods of time when the employee was on leave or on vacation.
(16) “Person” means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign.
(17) “Private club” means a private, membership-based business or nonprofit organization that operates a building or complex of buildings containing at least 50 guest rooms or suites of rooms that are offered as overnight lodging to members. The number of guest rooms or suites of rooms shall be calculated based on the room count on the opening of the private club or on December 31, 2019, whichever is greater.
(18) “Public health emergency” means a health-related emergency declared by a local, state, or federal authority.
(19) “State of emergency” means the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state or within the territorial limits of a county, city and county, or city that was declared by the Governor pursuant to the California Emergency Services Act (Chapter 7 (commencing with Section 8550) of Division 1 of Title 2 of the Government Code). “State of emergency” includes a public health emergency as defined in paragraph (16).
(20) “Successor employer” means a person that owns, controls, or operates an enterprise subject to a change in control after the change in control.
(21) “Transfer document” means the purchase agreement or other documents creating a binding agreement to effect the change in control.
(b) (1) An employer shall offer its laid-off employees in writing, to their last known physical address, and by email and text message to the extent the employer possesses such information, all job positions that become available after the effective date of this section for which the laid-off employees are qualified. A laid-off employee is qualified for a position if the employee either:
(A) Held the same or similar position at the enterprise at the time of the employee’s most recent separation from active service with the employer.
(B) Is or can be qualified for the position with the same training that would be provided to a new employee hired into that position.
(2) The employer shall offer positions to laid-off employees in an order of preference corresponding to subparagraphs (A) and (B) of paragraph (1). If more than one employee is entitled to preference for a position, the employer shall offer the position to the laid-off employee with the greatest length of service for the enterprise.
(3) A laid-off employee who is offered a position pursuant to this section shall be given at least five business days in which to accept or decline the offer. A “business day” is any day except Saturday, Sunday, or any official state holiday. An employer may make simultaneous, conditional offers of employment to laid-off employees, with a final offer of employment conditioned on application of the priority system set forth in paragraph (2).
(4) An employer that declines to recall a laid-off employee on the grounds of lack of qualifications and instead hires someone other than a laid-off employee shall provide the laid-off employee a written notice within 30 days identifying those hired in lieu of that recall, along with all reasons for the decision.
(5) This section also applies in any of the following circumstances:
(A) The ownership of the employer changed after the separation from employment of a laid-off employee but the enterprise is conducting the same or similar operations as before the state of emergency.
(B) The form of organization of the employer changed after the state of emergency.
(C) Substantially all of the assets of the employer were acquired by another entity which conducts the same or similar operations using substantially the same assets.
(D) The employer relocates the operations at which a laid-off employee was employed before the state of emergency to a different location.
(c) (1) (A) The incumbent employer shall, within 15 days after the execution of a transfer document, provide to the successor employer the name, address, date of hire, and employment occupation classification of each eligible employee.
(B) The successor employer shall maintain a preferential hiring list of eligible employees identified by the incumbent employer as set forth in subparagraph (A), and shall be required to hire from that list for a period beginning upon the execution of the transfer document and continuing for six months after the enterprise is open to the public under the successor employer.
(C) If the successor employer extends an offer of employment to an eligible employee, the successor employer shall retain written verification of that offer for at least three years from the date the offer was made. The verification shall include the name, address, date of hire, and employment occupation classification of each eligible employee.
(2) (A) A successor employer shall retain each eligible employee hired pursuant to this subdivision for no fewer than 90 days following the eligible employee’s employment commencement date. During this 90-day transition employment period, eligible employees shall be employed under the terms and conditions established by the successor employer or as required by law. The successor employer shall provide eligible employees with a written offer of employment. This offer shall remain open for at least five business days from the date of the offer. A successor employer may make simultaneous, conditional offers of employment to eligible employees, with a final offer of employment conditioned on application of the priority system set forth in subparagraph (B).
(B) If, within the period established in subparagraph (B) of paragraph (1) of subdivision (c), the successor employer determines that it requires fewer eligible employees than were required by the incumbent employer, the successor employer shall retain eligible employees by seniority within each job classification to the extent that comparable job classifications exist.
(C) During the 90-day transition employment period, the successor employer shall not discharge without cause an eligible employee retained pursuant to this subdivision.
(D) At the end of the 90-day transition employment period, the successor employer shall perform a written performance evaluation for each eligible employee retained pursuant to this section. If the eligible employee’s performance during the 90-day transition employment period is satisfactory, the successor employer shall consider offering the eligible employee continued employment under the terms and conditions established by the successor employer or as required by law. The successor employer shall retain a record of the written performance evaluation for a period of no fewer than three years.
(3) (A) The incumbent employer shall post written notice of the change in control at the location of the affected enterprise within five business days following the execution of the transfer document. Notice shall remain posted during any closure of the enterprise and for six months after the enterprise is open to the public under the successor employer.
(B) Notice shall include, but not be limited to, the name of the incumbent employer and its contact information, the name of the successor employer and its contact information, and the effective date of the change in control.
(C) Notice shall be posted in a conspicuous place at the enterprise so as to be readily viewed by eligible employees, other employees, and applicants for employment.
(d) No employer shall refuse to employ, terminate, reduce in compensation, or otherwise take any adverse action against any person for seeking to enforce their rights under this section by any lawful means, for participating in proceedings related to this section, opposing any practice proscribed by this section, or otherwise asserting rights under this section. This subdivision shall also apply to any employee who mistakenly, but in good faith, alleges noncompliance with this section.
(e) This section may be enforced as follows:
(1) An employee, including any eligible employee, may file a complaint with the Division of Labor Standards Enforcement against the employer, or in the case of a violation of subdivision (c), incumbent employer or the successor employer, for violations of this section and may be awarded any or all of the following, as appropriate:
(A) Hiring and reinstatement rights pursuant to this section, with the 90-day transition employment period not commencing until the eligible employee’s employment commencement date with the successor employer.
(B) Front pay or back pay for each day during which the violation continues, which shall be calculated at a rate of compensation not less than the highest of any of the following rates:
(i) The average regular rate of pay received by the employee or eligible employee during the last three years of that employee’s employment in the same occupation classification.
(ii) The most recent regular rate received by the employee or eligible employee while employed by the employer, incumbent employer, or the successor employer.
(iii) The regular rate received by the individual in the position during the time that the employee or eligible employee should have been employed.
(C) Value of the benefits the employee or eligible employee would have received under the employer or successor employer’s benefit plan.
(2) Any complaint filed with the division shall be investigated as provided in subdivision (b) of Section 98.7.
(3) No criminal penalties shall be imposed for violation of this section.
(f) The Division of Labor Standards Enforcement may promulgate and enforce rules and regulations, and issue determinations and interpretations, consistent with and necessary for the implementation of this article. Those rules and regulations, determinations and interpretations shall have the force of law and may be relied upon by employers, employees, and other persons to determine their rights and responsibilities under this section.
(g) Nothing in this section shall prohibit a local government agency from enacting ordinances that impose greater standards than, or establish additional enforcement provisions to, those prescribed by this section. This section shall not be construed to limit a discharged employee or eligible employee’s right to bring a common law cause of action for wrongful termination.
(h) All of the provisions of this section, or any part of this section, may be waived in a valid collective bargaining agreement, but only if the waiver is explicitly set forth in that agreement in clear and unambiguous terms. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute or be permitted as a waiver of all or any part of the provisions of this section.
(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SECTION 1.

 Section 12945.7 is added to the Government Code, to read:

12945.7.
 (a) It shall be an unlawful employment practice for any employer to refuse to grant a request by any employee to take family care and medical leave due to the coronavirus (COVID-19). Family care and medical leave due to the coronavirus (COVID-19) requested pursuant to this subdivision shall not be deemed to have been granted unless the employer provides the employee, upon granting the leave request, a guarantee of employment in the same or comparable position upon the termination of the leave.
(b) A request made pursuant to subdivision (a) may be made and granted in a manner similar to a request made pursuant to Section 12945.2.
(c) For purposes of this section:
(1) “Child” means a biological, adopted, or foster child, a stepchild, a legal ward, a child of a domestic partner, or a person to whom the employee stands in loco parentis.
(2) “Domestic partner” has the same meaning as defined in Section 297 of the Family Code.
(3) “Employer” means either of the following:
(A) Any person who directly employs one or more persons to perform services for a wage or salary.
(B) The state, or any political or civil subdivision of the state, and cities.
(4) “Employment in the same or a comparable position” means employment in a position that has the same or similar duties and pay that can be performed at the same or similar geographic location as the position held prior to the leave.
(5) “Family care and medical leave due to the coronavirus (COVID-19)” means any of the following:
(A) Leave to care for a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner who has been diagnosed with or quarantined because of the coronavirus (COVID-19).
(B) Leave for an employee’s own diagnosis with or quarantine because of the coronavirus (COVID-19) that makes the employee unable to perform the functions of the position of that employee.
(6) “Grandchild” means a child of the employee’s child.
(7) “Grandparent” means a parent of the employee’s parent.
(8) “Health care provider” means an individual holding either a physician’s and surgeon’s certificate issued pursuant to Article 4 (commencing with Section 2080) of Chapter 5 of Division 2 of the Business and Professions Code or an individual duly licensed as a physician or surgeon in another state or jurisdiction who directly treats or supervises the treatment of the employee’s condition.
(9) “Parent” means a biological, foster, or adoptive parent, a stepparent, a parent-in-law, a legal guardian, or other person who stood in loco parentis to the employee when the employee was a child.
(10) “Parent-in-law” means the parent of a spouse or domestic partner.
(11) “Sibling” means a person related to another person by blood, adoption, or affinity through a common legal or biological parent.
(d) An employer shall not be required to pay an employee for any leave taken pursuant to subdivision (a), except as required by subdivision (e).
(e) An employee taking a leave permitted by subdivision (a) may elect, or an employer may require the employee, to substitute, for leave allowed under subdivision (a), any of the employee’s accrued vacation leave or other accrued time off during this period or any other paid or unpaid time off negotiated with the employer. If an employee takes leave because of the employee’s own diagnosis with or quarantine because of the coronavirus (COVID-19), the employee may also elect, or the employer may require, the employee to substitute accrued sick leave during the period of the leave. However, an employee shall not use sick leave during a period of leave to care for a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner diagnosed with or quarantined because of the coronavirus (COVID-19).
(f) During any period that an eligible employee takes leave pursuant to subdivision (a), the employer shall maintain and pay for coverage under a “group health plan,” as defined in Section 5000(b)(1) of the Internal Revenue Code, for the duration of the leave, commencing on the date leave was taken, at the level and under the conditions coverage would have been provided if the employee had continued in employment continuously for the duration of the leave. An employer may recover the premium that the employer paid as required by this subdivision for maintaining coverage for the employee under the group health plan if both of the following conditions occur:
(1) The employee fails to return from leave after the period of leave to which the employee is entitled has expired.
(2) The employee’s failure to return from leave is for a reason other than the continuation, recurrence, or onset of a serious health condition that entitles the employee to leave under subdivision (a) or Section 12945.2, or circumstances beyond the control of the employee.
(g) (1) Any employee taking leave pursuant to subdivision (a) shall continue to be entitled to participate in employee health plans for any period during which coverage is not provided by the employer under subdivision (f), employee benefit plans, including life insurance or short-term or long-term disability or accident insurance, pension and retirement plans, and supplemental unemployment benefit plans to the same extent and under the same conditions, as apply to an unpaid leave taken for any purpose other than those described in subdivision (a). In absence of these conditions an employee shall continue to be entitled to participate in these plans and, in the case of health and welfare employee benefit plans, including life insurance or short-term or long-term disability or accident insurance, or other similar plans, the employer, may, at the employer’s discretion, require the employee to pay premiums, at the group rate, during the period of leave not covered by any accrued vacation leave, accrued sick leave, or other accrued time off, or any other paid or unpaid time off negotiated with the employer, as a condition of continued coverage during the leave period. However, the nonpayment of premiums by an employee shall not constitute a break in service, for purposes of longevity, seniority under any collective bargaining agreement, or any employee benefit plan.
(2) For purposes of pension and retirement plans, an employer shall not be required to make plan payments for an employee during the leave period, and the leave period shall not be required to be counted for purposes of time accrued under the plan. However, an employee covered by a pension plan may continue to make contributions in accordance with the terms of the plan during the period of the leave.
(h) During a medical leave period taken pursuant to subdivision (a), the employee shall retain employee status with the employer, and the leave shall not constitute a break in service, for purposes of longevity, seniority under any collective bargaining agreement, or any employee benefit plan. An employee returning from leave shall return with no less seniority than the employee had when the leave commenced for purposes of layoff, recall, promotion, job assignment, and seniority-related benefits such as vacation.
(i) (1) An employer may require that an employee’s request for leave to care for a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner diagnosed with or quarantined because of the coronavirus (COVID-19) be supported by a certification issued by the health care provider of the individual requiring care. That certification shall be sufficient if it includes all of the following:
(A) The date on which the coronavirus (COVID-19) diagnosis or quarantine was given.
(B) The probable duration of the condition or quarantine.
(C) An estimate of the amount of time that the health care provider believes the employee needs to care for the individual requiring the care.
(D) A statement that the condition warrants the participation of a family member to provide care during a period of treatment or supervision of the individual requiring care.
(2) The employer may require that the employee obtain subsequent recertification regarding the employee’s condition on a reasonable basis, in accordance with the procedure provided in paragraph (1).
(j) (1) An employer may require that an employee’s request for leave due to the employee’s own diagnosis with or quarantine because of the coronavirus (COVID-19) be supported by a certification issued by the employee’s health care provider. That certification shall be sufficient if it includes all of the following:
(A) The date on which the coronavirus (COVID-19) diagnosis or quarantine was given.
(B) The probable duration of the condition or quarantine.
(C) A statement that, due to the employee’s condition or quarantine, the employee is unable to perform the function of the employee’s position.
(2) The employer may require that the employee obtain subsequent recertification regarding the employee’s condition on a reasonable basis, in accordance with the procedure provided in paragraph (1).
(3) (A) In any case in which the employer has reason to doubt the validity of the certification provided by this section, the employer may require, at the employer’s expense, that the employee obtain the opinion of a second health care provider, designated or approved by the employer, concerning any information certified under paragraph (1).
(B) The health care provider designated or approved under subparagraph (A) shall neither be employed by nor contract with the employer on a regular basis.
(C) In any case in which the second opinion described in subparagraph (A) differs from the opinion in the original certification, the employer may require, at the employer’s expense, that employee to obtain the opinion of a third health care provider, designated or approved jointly by the employer and the employee, concerning the information certified under paragraph (1).
(D) The opinion of the third health care provider concerning the information certified under paragraph (1) shall be considered to be final and shall be binding on the employer and the employee.
(4) As a condition of an employee’s return from leave taken because of the employee’s own serious health condition, the employer may have a uniformly applied practice or policy that requires the employee to obtain certification from the employee’s health care provider that the employee is able to resume work. Nothing in this paragraph shall supersede a valid collective bargaining agreement that governs the return to work of that employee.
(k) It shall be an unlawful employment practice for an employer to refuse to hire, or to discharge, fine, suspend, expel, or discriminate against, any individual because of either of the following:
(1) An individual’s exercise of the right to leave provided by subdivision (a).
(2) An individual’s giving information or testimony as to the individual’s own family care and medical leave due to the coronavirus (COVID-19), or another person’s family care and medical leave due to the coronavirus (COVID-19), in any inquiry or proceeding related to rights guaranteed under this section.
(l) Leave granted pursuant to this section shall be separate and distinct from any leave that may be requested pursuant to the federal Family and Medical Leave Act of 1993 or Section 12945.2.
(m) It shall be an unlawful employment practice for an employer to interfere with, restrain, or deny the exercise of, or the attempt to exercise, any right provided under this section.
(n) This section shall remain in effect only until January 1, 2022, and as of that date is repealed.