SENATE COMMITTEE ON

PUBLIC EMPLOYMENT AND RETIREMENT Dr. Richard Pan, Chair

2015 - 2016 Regular

Bill No: AB 466 Hearing Date: 7/13/15 Author: McCarty

Version: 7/06/15 As amended Urgency: No Fiscal: Yes

Consultant: Pamela Schneider

SUBJECT: State civil service: employment procedures

SOURCE: Service Employees International Union, Local 1000

ASSEMBLY VOTES:

Assembly Floor: 47 - 27

Assembly Appropriations Committee: 12 - 5

Assembly Public Employees,

Retirement/Soc Sec Committee:

5 - 2

DIGEST: This bill specifies that the requirement that state employment forms require an applicant to disclose whether he or she has ever entered into an

agreement with the state employer prohibiting that person from seeking or accepting any subsequent employment with the state do not apply if the agreement

prohibits him or her from seeking employment with a particular state agency (vs. all state employment).

ANALYSIS:

Existing law:

1) Provides, pursuant to Section 1 of Article VII of the Constitution of California,

that the civil service includes every officer and employee of the state except as otherwise provided, and that in the civil service, permanent appointment and promotion be made under a general system based on merit ascertained by

competitive examination.

2) Requires, pursuant to the Civil Service Act, state employment to be based on the merit principle; that appointments are based upon merit and fitness

ascertained through practical and competitive examination; and that tenure of civil service employment is subject to good behavior.

AB 466 (McCarty) Page 2 of 3

3) Establishes the State Personnel Board (SPB), which oversees the state

disciplinary process, hears appeals of the disciplinary process, and assists state employers and employees in settling such appeals, which may include reaching

agreements to not seek subsequent state employment with a particular state employer or all state employers.

4) Requires the California Department of Human Resources and the Department

of Fair Employment and Housing to work cooperatively to develop uniform employment forms where possible pursuant to the provisions of the Civil

Service Act and to coordinate their enforcement of the Civil Service Act. 5) Requires each state agency to use the standard employment forms.

6) Requires state employment forms to require an applicant for employment to

disclose whether the person has ever entered into an agreement with the state, regarding previous employment with the state, which prohibits the applicant

from seeking or accepting any subsequent employment with the state.

This bill modifies the disclosure requirement by specifying that employment forms used by a state agency shall not be required to require a state employment

applicant to disclose if he or she has entered into an agreement that prohibits that person from seeking employment with a particular state agency.

Background

Currently, when a state employer terminates a civil service employee, the employee is entitled to appeal the dismissal to the independent State Personnel

Board (SPB). The SPB has the discretion to sustain, revoke, or modify the termination. Generally, a prehearing and settlement conference is set to offer both

parties a chance to meet and negotiate a settlement of their case prior to a full hearing before the SPB.

According to the author:

Settlement conferences offer an opportunity for both the employee and

employer to address the issue without having to go through the expense and uncertainty of a formal evidentiary hearing. At these settlement

conferences, a wide range of proposals can be made, including proposals that prohibit the employee from seeking or accepting subsequent employment with their particular department or with the state as a whole.

The ability to negotiate such separation agreements is a key tool for both the

AB 466 (McCarty) Page 3 of 3

State and the employee to effectively and efficiently resolve their differences in the settlement negotiation process."

Prior/Related Legislation

SB 1240 (Anderson, Chapter 254, Statutes of 2014) required state employment

forms to require an applicant for employment to disclose whether the person has ever entered into an agreement with the state, regarding previous employment with

the state, that prohibits the applicant from seeking or accepting any subsequent employment with the state.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

The Assembly Appropriations Committee cites minor and absorbable costs to

CalHR and state agencies to update employment forms.

SUPPORT:

Service Employees International Union, Local 1000 (source)

California Association of Professional Scientists California Association of Psychiatric Technicians

Professional Engineers in California Government

OPPOSITION:

None received ARGUMENTS IN SUPPORT:

As stated by the sponsor, SEIU, Local 1000:

While the intent of SB 1240 is clear, the language has created confusion as

to whether all applicants, including those that have agreed to never seek or accept subsequent employment with a particular department, would be

required to disclose such an agreement. The unintended consequence of a broad disclosure requirement is that it will discourage both the employee and

the State from engaging in the settlement negotiation process, and result in higher numbers of cases in the more costly and time consuming hearing

process before the SPB at taxpayers’ expense.