AB 528

Current law regulates the employers of traveling sales crews, which are defined

as two or more individuals who are employed as salespersons or in related support

work, who travel together in a group, and who are absent overnight from their

permanent residences for the purpose of selling consumer goods or services to

consumers from house to house, on any street, or in any other place that is open to

the public.

This bill extends the laws regulating traveling sales crews to nonprofit

organizations operated exclusively for the promotion of social welfare that devote

their net earnings exclusively to charitable, educational, or recreational purposes

(commonly referred to as "501 (c) (4) organizations" after the provision of the Internal

Revenue Code describing those organizations); and to political organizations

operated primarily for the purpose of accepting contributions or making

expenditures for the purpose of influencing the selection, nomination, election, or

appointment of an individual to any federal, state, or local public office (commonly

referred to as "527 political organizations"after the provision of the Internal Revenue

Code describing those organizations).

Specifically, under current law, a person may not employ, offer to employ, or

otherwise recruit an individual to work as a traveling sales crew worker without first

obtaining a certificate of registration from the Department of Workforce

Development (DWD). To obtain a certificate of registration, a person must meet

certain minimum requirements, including undergoing a background investigation

to determine whether the person has been convicted of certain disqualifying offenses

specified under current law and establishing proof of the person's ability to pay any

compensation owed to a traveling sales crew worker employed by the person. This

bill extends those registration requirements to 501 (c) (4) organizations and 527

political organizations that employ traveling sales crews to solicit contributions from

house to house, on any street, or in any other place that is open to the public.

Current law also requires an employer to provide an individual who is offered

employment as a traveling sales crew worker with a written disclosure statement of

the terms of employment. The written disclosure statement must include: 1) the

place or places of employment; 2) the compensation to be paid; 3) the type or types

of work on which the individual may be employed; 4) the pay period and the manner

in which compensation will be paid; 5) the number of days per week and hours per

day that the individual may be required to engage in sales activities or related

support work; 6) the period of employment, including the approximate beginning and

ending dates of employment; 7) a description of the board, lodging, and other

facilities to be provided and any costs to be charged to the individual for those

facilities; and 8) description of the transportation to be provided. This bill extends

that written disclosure requirement to 501 (c) (4) organizations and 527 political

organizations that employ traveling sales crews to solicit contributions from house