This document provides a revision of a report on employer supported child care prepared by the California Governor's Advisory Committee on Child Development. The focus of the document is a series of policy discussions and recommendations on employer sponsored child care; a description and a history of employer sponsorship of day care are given. Policy recommendations, stating concerns voiced by child care professionals as well as concerns reflecting the needs of business and of labor, include the following five goals: (1) to develop innovations in state funding and program administration; (2) to improve tax incentives for employer sponsored child care; (3) to support innovation through improved licensing procedures; (4) to provide information and technical assistance for program development; and (5) to address specific concerns of child care professionals (for instance, low pay and poor benefits, lack of child care during periods of employee illness, and lack of evaluation of the accessibility and availability of child care services). Appendices include descriptions of seven employer supported programs, descriptions of tax legislation pertinent to employer supported child care, and a 25-page bibliography of references on such topics as need for child care, program development, economic issues, and care of sick children. (Author/DB)