Janitorial Bills Continue to Move

Two high-cost janitorial bills continue to advance through the legislative process, with both now in the Assembly Appropriations Committee.

Assembly Bill 2374 expands requirements for displaced janitors, and Assembly Bill 2364 imposes production rate limits. 

Both bills represent new costs for an industry still reeling from market uncertainty. 

The impact of the tentative labor agreement on the bills remains to be seen. 

Status of the Bills

Both bills have advanced through the committee process in the State Assembly. 

We expected the bills to move easily through their respective policy committees. There are future pressure points where our opposition could find success.

They are now both before the appropriations committee, with AB 2364 set for a hearing on May 8th. 

AB 2374 has been referred to the Assembly Appropriations suspense file. 

We are part of a coalition with statewide associations and janitorial service providers. 

BOMA/GLA will continue to pursue available avenues to defeat these bills. 

In the meantime, we are assessing how the new tentative labor agreement will impact actions in Sacramento.

The union involved in the labor negotiations is the primary sponsor for these two bills. 

Assembly Bill 2374

AB 2374 is also referred to as the "Displaced Janitors" bill. It expands current requirements for employers or those who contract for janitorial services. 

The bill would do the following: 

• Expand the definition of "contractor" to include any person who employs janitor employees and enters into a service contract with the awarding authority. Current law defines "contractor" as any person who employs 25 or more individuals. 
• Companies that take over a contract must retain employees for 90 days instead of the current law's requirement of 60 days. Employees with satisfactory work performance must be offered continued employment after 90 days. 
• The new employer would need to maintain a preferential hiring list based on the seniority of covered employees. 

This bill's changes to how janitorial business is conducted will be burdensome and result in higher operating costs. 

If a new contractor could work with fewer people, state law would require the company to retain extra employees. 

The result is higher costs for the property and, by extension, for the tenants. 

Assembly Bill 2364

Not satisfied with just one challenging janitorial bill, the legislature also considers AB 2364. 

This bill would impose production rate limits and increase the costs of mandatory harassment training programs. 

The overall bill is demanding and costly, with the critical issue being the production rate limit. 

A production rate is the amount of space that a janitor can clean. 

The current average rate is between 5000 and 6000 square feet. 

AB 2364 more than halves that. More janitors would need to be hired to complete the job. 

One member said that up to 16 additional full-time employees could need to be hired for a million-square-foot office building at an extra cost of up to $100,000 a month. 

The production rate limits also do not consider the different nature of cleaning a fully occupied office versus a hybrid space. 

This act is the legislature requiring work conditions to be better negotiated through employment contracts. 

It also burdens buildings more as they try to adjust to meet new tenant needs. 

Take Action

We cannot overstate the negative impacts of these two bills. If they pass, the consequences will reverberate across the industry. 

Janitorial costs would rise almost immediately. Following that, building owners would be required to cut investments elsewhere. 

These policies would further erode the region's attractiveness for real estate investment. 

And ultimately harm the community's economic well-being.

Stay connected with BOMA on the Frontline for updates on this and other state legislative developments. In the meantime, tell your state representatives that AB 2374 and AB 2364 would harm economic recovery in commercial districts!