Nicole Rice

Help CMTA Stop AB 1209 and SB 63

By Nicole Rice, Policy Director, Government Relations

Capitol Update, Sept. 22, 2017

CMTA needs your help to stop two labor bills from becoming law. If signed, these bills will dramatically increase the litigation expense and exposure of all manufacturers, no matter your size. Governor Jerry Brown needs to hear from you … Ask him to VETO AB 1209 and SB 63.

AB 1209 (Lorena Gonzalez Fletcher, D-San Diego) requires manufacturers with 500 or more employees in California to collect the mean and median wage data of exempt employees by gender and job classification or title and submit it to the Secretary of State where it will be publicly posted and attributable to individual companies. Not all wage disparities automatically equate to wage discrimination and a violation of state law. California’s recently revised Equal Pay Law – SB 358 /Labor Code 1197.5 – allows for several bona fide factors that can justify a lawful wage differential between employees performing “substantially similar” work. Unfortunately, the only opportunity a manufacturer would have to assert one of these lawful reasons would be in court … after the lawsuit has been filed and resources expended; the headline story has run; and the public ridicule has irreparably damaged their brand. Use our tool to urge the Governor to VETO AB 1209!  The bill publicly shames large manufacturers and encourages meritless litigation through the public posting of noncontextual information. It will do nothing to further eradicate wage inequity. The Sacramento Business Journal even wrote an article on the potential avalanche of lawsuits.

SB 63 (Hannah-Beth Jackson, D-Santa Barbara) requires small manufacturers with 20-49 employees to provide up to 12 weeks of “protected” parental leave. This represents a new expanded burden on smaller manufacturers as only companies with 50 or more employees are currently required to provide such leave. Manufacturers will have no flexibility or discretion in granting the leave to accommodate the fact that others might be out on similar or other absences. Instead, they must either provide it upon request or find themselves the subject of costly litigation.  Use our tool to urge the Governor to VETO SB 63! Small manufacturers and their employees should be allowed to set their own schedules.


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