BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1313
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1313 (Allen)
          As Amended  September 2, 2011
          Majority vote
           
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          |ASSEMBLY:  |     |(June 2, 2011)  |SENATE: |22-15|(August 20,    |
          |           |     |                |        |     |2012)          |
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                              (vote not relevant)
           
           Original Committee Reference:   L. & E.  

           SUMMARY  :  Makes the daily overtime requirements of current law 
          that require overtime for hours worked in excess of eight in one 
          workday applicable to agricultural employees, as specified.

           The Senate amendments  change the author of the bill, delete the 
          contents of the bill and instead eliminate the provision of the 
          Labor Code that exempts agricultural employees from the 
          following:

          1)Overtime compensation when an individual works in excess of 
            eight hours in one workday or work in excess of 40 hours in 
            any one workweek:

          2)A 30-minute meal break before the start of the fifth hour of 
            work, unless the work period is no more than six hours and 
            both the employer and the employee choose to waive the meal 
            period by mutual consent.  

          3)A second 30-minute meal break after ten hours of work that can 
            be waived by the mutual consent of the employer and employee, 
            if the work period is no more than 12 hours, and the first 
            meal period was not waived. 

           AS PASSED BY THE ASSEMBLY  , this bill required the Agricultural 
          Labor Relations Board (ALRB) and its general counsel to post on 
          their web site specified information about open cases.
            
           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  In 1938, Congress passed the Fair Labor Standards Act 
          (FLSA), which established minimum requirements with respect to 








                                                                  AB 1313
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          specified labor standards, including minimum wage and overtime.  
          The overtime provisions of the FLSA were not extended to 
          agricultural employees.

          However, as with all provisions of the FLSA, states are allowed 
          to exceed the requirements laid out in the federal law.  The 
          issue of overtime for agricultural employees in California was 
          first dealt with in 1941.  Previously, the law had been silent 
          on this subject.  But in 1941 the Legislature exempted all 
          agricultural employees from the statutory requirements of 
          overtime, similar to the FLSA.  This statutory exemption was 
          retained when the 8-hour day was codified in 1999.  

          This statutory exemption, however, did not prohibit the 
          Industrial Welfare Commission (IWC) from legally promulgating 
          overtime provisions beyond the traditional 8-hour standard of 
          California law.  Currently, the applicable wage order for 
          agricultural employees requires the payment of overtime wages 
          when an agricultural employee works longer than 10 hours in a 
          single day, and more than six days during any workweek.


          With respect to meal periods, the applicable wage order provides 
          that every employer shall "authorize and permit" agricultural 
          employees to take a meal period after five hours of work.  This 
          language differs from the statutory meal period language 
          applicable to other employees that prohibits an employer from 
          employing a worker longer than five hours without "providing" a 
          meal period.  In addition, the wage order does not require a 
          second meal period after the tenth hour of work (as the statute 
          requires for other employees).

          This bill proposes to eliminate the statutory exemption for 
          agricultural employees from overtime and meal periods, thereby 
          making them subject to the general 8-hour day standard for 
          overtime and the "provide" meal period standard, as well as the 
          requirement for a second meal period after ten hours of work.

          Proponents argue that agricultural workers face increasingly 
          difficult working conditions for very low pay.  Proponents 
          believe that agricultural employees should not be treated 
          differently than other workers, and that the two-tiered overtime 
          provisions are antiquated and should be abolished.

          Opponents argue that California already has the nation's most 








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          progressive labor protections for agricultural production, and 
          that no other state currently requires overtime once 
          agricultural workers have exceeded the 40 hour work week.  
          Moreover, opponents argue that due to razor-thin profit margins, 
          farmers will be forced to cut hours and lay off employees if 
          they face an increase in labor costs.  Opponents believe that 
          this will hurt the California economy, as agriculture has aided 
          the state's recovery during the current economic downturn, as 
          well as place the state's agricultural industry at a competitive 
          disadvantage.

          This bill is identical to SB 1121 (Florez) from last session, 
          which was vetoed by Governor Schwarzenegger.  The Governor's 
          veto message stated (in part): 

          "Unfortunately, this measure, while well-intended, will not 
          improve the lives of California's agricultural workers and 
          instead will result in additional burdens on California 
          businesses, increased unemployment, and lower wages.  In order 
          to remain competitive against other states that do not have such 
          wage requirements, businesses will simply avoid paying overtime. 
           Instead of working 10-hour days, multiple crews will be hired 
          to work shorter shifts, resulting in lower take home pay for all 
          workers.  Businesses trying to compete under the new wage rules 
          may become unprofitable and go out of business, resulting in 
          further damage to our already fragile economy."

          This bill was substantially amended in the Senate and the 
          Assembly-approved provisions of this bill were deleted.


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

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