BILL ANALYSIS                                                                                                                                                                                                    




                                                                  AB 569
                                                                  Page A

          ASSEMBLY THIRD READING
          AB 569 (Emmerson)
          As Amended  April 27, 2009
          Majority vote 

           LABOR & EMPLOYMENT     7-0      APPROPRIATIONS      16-0        
           
           ------------------------------------------------------------------ 
          |Ayes:|Monning, Bill Berryhill,  |Ayes:|De Leon, Nielsen, Ammiano, |
          |     |Eng, Furutani, Gaines,    |     |                           |
          |     |Ma, Portantino            |     |Charles Calderon, Davis,   |
          |     |                          |     |Duvall, Krekorian, Hall,   |
          |     |                          |     |Harkey, Miller,            |
          |     |                          |     |John A. Perez, Price,      |
          |     |                          |     |Skinner, Solorio, Audra    |
          |     |                          |     |Strickland, Torlakson      |
          |-----+--------------------------+-----+---------------------------|
          |     |                          |     |                           |
           ------------------------------------------------------------------ 
           SUMMARY  :  Establishes specified collective bargaining agreement  
          exemptions related to requirements of existing law concerning  
          meal periods.   Specifically,  this bill  :
           
          1)Provides that specified provisions of current law related to  
            meal periods do not apply to an employee employed in the  
            construction industry who is covered by a valid collective  
            bargaining agreement that meets certain conditions.

          2)Provides that specified provisions of current law related to  
            meal periods do not apply to an employee employed as a  
            commercial driver in the transportation industry who is  
            covered by a valid collective bargaining agreement that meets  
            certain conditions.

          3)Adds uncodified language to specify that these provisions of  
            the bill shall not be construed to affect the interpretation  
            of the nature or scope of the law related to meal periods  
            other than for employees or employers specifically covered by  
            these provisions.

           EXISTING LAW  : 

          1)Prohibits an employer from employing any person for a work  
            period of more than five hours without providing the employee  









                                                                  AB 569
                                                                  Page B

            with a meal period of not less than 30 minutes [Labor Code  
            section 512 (a)].

          2)Provides that if the total work period per day of the employee  
            is no more than six hours, the meal period may be waived by  
            mutual consent of both the employer and employee [Labor Code  
            section 512 (a)].

          3)Authorizes paid on-duty meal periods when the nature of the  
            work prevents an employee from being relieved of all duty, the  
            parties have agreed to the paid on-duty meal period in  
            writing, and the written agreement authorizes the employee to  
            revoke the agreement at any time [See, for example, Industrial  
            Welfare Commission Wage Order 9 Section 11(C)].

          4)Provides that if an employer fails to provide an employee a  
            meal period or rest period, the employer shall pay the  
            employee one additional hour of pay at the employee's regular  
            rate of compensation for each work day that the meal or rest  
            period is not provided (Labor Code Section 226.7).

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, a potential minor decrease in costs to the Division  
          of Labor Standards Enforcement related to fewer enforcement  
          investigations.

           COMMENTS  :  This bill is sponsored by the United Parcel Service  
          (UPS), who argues that it would allow unionized transportation  
          companies with a valid collective bargaining agreement to  
          negotiate flexible terms for the timing of meal periods because  
          current law significantly restricts the freedom of drivers to  
          decide for themselves when they can take their meal periods.   
          They contend that existing law penalizes drivers who require  
          some flexibility for personal safety or other reasons as it  
          relates to taking a meal period, including being stuck in  
          traffic or seeking to take a break in a safe neighborhood.  This  
          measure will allow flexibility through collective bargaining in  
          the transportation industry and relieve UPS from disciplining  
          employees who require some flexibility for their meal period. 

          In addition, UPS points out that in 2007 the Assembly passed a  
          similar measure, AB 1034 (Keene) on a 71-0 vote.  They state  
          that, although opponents of this measure have complained that  
          they are not included, they have clearly not shown an ability to  









                                                                  AB 569
                                                                  Page C

          seek similar flexibility on their own.  UPS states that it  
          continues to support broader solutions, but cannot continue to  
          unfairly discipline their drivers where a collectively bargained  
          solution is readily available with a flexible solution agreed to  
          by management and labor.

          In addition, the Associated General Contractors argue that many  
          construction companies operate under a collective bargaining  
          agreement.  However, as a result of recent case law [discussed  
          above in the analysis], without this legislation a collective  
          bargaining agreement does not supersede the statute.  Therefore,  
          this bill will provide some needed clarity in the current meal  
          period rules for the construction industry.

          Opponents object to this measure unless amended to provide  
          clarity to all industries.  They state that currently all  
          industries, business, and occupations are subject to a  
          restrictive statute which has resulted in costly litigation.   
          They believe that a comprehensive solution must be reached in  
          order to provide all businesses regardless of size, type or  
          union status with appropriate clarity and guidance for the  
          compliance and enforcement of meal period laws. 

           
          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091 




                                                                FN: 0000678