AB 1383 Page 1 ASSEMBLY THIRD READING AB 1383 (Jones) As Amended May 28, 2015 Majority vote Committee Labor Votes 7-0 Ayes Roger Hernández, Harper, Chu, Low, McCarty, Patterson, Thurmond Appropriations 17-0 Gomez, Bigelow, Bonta, Calderon, Chang, Daly, Eggman, Gallagher, Eduardo Garcia, Gordon, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood Noes SUMMARY: Establishes the "Voluntary Veterans' Preference Employment Policy Act" for employers to grant a veteran preference in hiring, and expands the veteran’s preference exception to all veterans, regardless of when they served. EXISTING LAW: 1) Provides that it is unlawful for any employer to discriminate against, to refuse to hire or employ a person or to refuse to select or train that person in any apprenticeship training program or any other training program leading to employment because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status of the person discriminated against. 2) Provides that it is unlawful for an employer, labor organization, employment agency, apprenticeship training program or any training program leading to employment, or any other person, because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, to harass an employee, an applicant, or a person providing services pursuant to a contract. 3) Allows employers, under the California Fair Employment and Housing Act (FEHA) to use veterans' status as a factor in employee selection or to give special consideration to Vietnam–era veterans. FISCAL EFFECT: According to the Assembly Appropriations Committee, ongoing General Fund administrative costs to the Department of Veteran Affairs in the range of $195,000 to $365,000. It is difficult to estimate the number of inquiries the department would receive related to veteran verification. There are 2 million veterans in California; roughly half are of working age. For illustration, if the department were to process 2,500 inquires annually; administrative costs would be in the lower end of this range. AB 1383 Page 2 COMMENTS: The author points out, that currently California already has a veteran's preference exception in Government Code Section 12940(a)(4) and argues the problem with the existing law is that it is arguably outdated and narrow. In its current state, this veteran's preference exception only applies to Vietnam War era veterans and only immunizes employers from gender discrimination claims. This is problematic because the amount of Vietnam War era veterans who are looking to utilize this preference exception is steadily declining due to the fact that many of these veterans are no longer searching for employment. Also, it omits any veteran that did not serve in the Vietnam War era and clearly limits the amount of people who can use this veteran's preference. The author is seeking to correct an outdated law, which only allows for a business to create a preference for Vietnam War era veterans. While the original legislation was relevant when first adopted, the existing law is now lacking because it only provides preference to Vietnam War era veterans, and does not encompass all veterans. According to the National Conference of State Legislatures, similar veteran's preference laws have recently been enacted in Arkansas, Florida, Idaho, Iowa, Maine, Massachusetts, Minnesota, North Dakota, South Carolina, Virginia and Washington. Also, similar measures are currently pending in Alaska, Indiana, Montana, Nebraska, New Hampshire, Oklahoma, South Dakota, Tennessee, Texas, and Utah. Supporters state that despite the popular nature of these bills and a universal desire to assist veterans, some employers and human resource professionals have expressed concern that exercising such a preference might inadvertently create litigation under state or local anti-discrimination laws. This law allows an employer to establish a voluntary veterans hiring preference policy and clarifies that exercising such a preference would not violate state or local anti-discrimination laws. Lastly, they state that by limiting this preference to hiring decisions, this bill is narrowly focused and intended to remedy the immediate problem of higher than normal unemployment rates for veterans and removes veteran-related hiring barriers. There is no opposition on file. Analysis Prepared by: Lorie Alvarez / L. & E. / (916) 319-2091 FN: 0000568