BILL ANALYSIS Ó AB 1398 Page 1 Date of Hearing: May 4, 2011 ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT Sandre Swanson, Chair AB 1398 (Chesbro) - As Amended: March 31, 2011 SUBJECT : Employment of minors: agricultural packing plants. SUMMARY : Extends the sunset date on an exemption for the employment of minors in Lake County agricultural packing plants until January 1, 2017. EXISTING LAW : 1)Generally limits the hours of employment of minors in the state. 2)Allows the Labor Commissioner (LC) to grant an exemption to agricultural packing plants employing minors 16 or 17 years of age, allowing them to work up to 10 hours per day when school is not in session during peak harvest season. 3)In addition, allows the LC to grant an exemption during the peak harvest season in Lake County, authorizing the employment of minors 16 or 17 years of age to work up to 10 hours per day and 60 hours per week, during days when school is not in session. 4)Specifies that the exemption requires prior written approval of the Lake County Office of Education. 5)Requires the LC to inspect the affected agricultural packing plant prior to issuing or renewing an exemption. 6)Requires the employer to file an annual report with the LC containing specified employment information. 7)Requires the LC to submit an annual report to the Legislature that describes the general working conditions of minors employed in the agricultural packing industry during the previous year. 8)Contains a January 1, 2012 sunset date. FISCAL EFFECT : Unknown AB 1398 Page 2 COMMENTS : This bill is sponsored by the California Grape and Tree Fruit League. General Background on the Exemption for Lake County Packing Plants The exemption for minors working in agricultural packing plants in Lake County was originally enacted in 1996. Proponents of the exemption have traditionally stated that it reflects the unique industry and labor market requirements of Lake County. This exemption has been characterized as necessary to help deal with the labor shortage in Lake County's agricultural industry during harvest time each year in August. The pear-packing season lasts only four to six weeks and coincides with an increase in tourism, which is considered the other large industry in Lake County. With both tourism and agriculture at peak activity, the available labor pool is severely limited . Therefore, it is argued that the employment of minors during this time is necessary and mutually beneficial for both the minors employed and growers. Proponents contend that this exemption has proved successful and the participation of youth workers has now become an economic imperative for Lake County agricultural employers. The Labor Commissioner's Annual Report for 2010 The most recent annual report on employment of minors in agricultural packing plants was submitted on March 24, 2011. With respect to the number of minors employed in the industry, the report stated the following: "According to records of the Lake County agricultural packing plant employer operating with an approved exemption in 2010, a total of 24 minors aged 16 and 17 years old were employed during the 2010 peak packing season. Of those 24, AB 1398 Page 3 one individual turned 18 early in the season. Two minors aged 15 years old were employed on a schedule of no more than 8 hours per day and/or 40 hours a week. The seven additional packing operations with approved exemptions statewide in 2010 were granted approval to employ an additional 99 minors under the provisions of these permits." With respect to the number of exemptions issued, renewed or denied, the report stated the following: "In 2010, pursuant to Labor Code §1393.5, an application was submitted by one Lake County employer operating in two locations for exemption to authorize employment of minors for more than 48 hours but not to exceed 60 hours in any one week. The Labor Commissioner issued the exemption to the employer for both locations. The employer held a valid exemption in 2009. At the conclusion of the 2009 season, one employer who historically held an approved exemption was found, upon inspection, to be in violation of multiple wage and hour laws, and was cited. This employer was told at the end of the 2009 season that it would not be eligible for an exemption for the 2010 season and did not apply. In addition to the Lake County employer, seven packing operations outside of Lake County applied for exemption. All seven were approved and permits issued." PRIOR LEGISLATION : AB 1900 (Freidman), also known as the Omnibus Child Labor Reform Act of 1993, became effective on January 1, 1995. Among other provisions, the bill authorized the LC to grant exemptions to the limitation of the number of hours that 16- and 17-year-old minors may work in a day at an agricultural packing plant during peak harvest season when school is not in session. The law authorized the Labor Commissioner to grant an exemption to allow minors to work up to ten hours per day, rather than eight hours, if the additional work hours did not materially affect the safety and welfare of the minor. SB 1988 (Thompson) of 1996 authorized the Lake County Board of Education to permit the employment of 16- and 17-year-old minors AB 1398 Page 4 for up to sixty hours per week when school was not in session during the peak harvest season. This law contained a sunset date of January 1, 1999. SB 2054 (Thompson) of 1998 extended the sunset date to January 1, 2002. SB 912 (Chesbro) of 2001 amended the law to require the LC to annually inspect Lake County agricultural packing plants that apply for an exemption or renewal of an exemption authorized by the section. The bill also required agricultural packing plants that receive such an exemption to submit to the LC an annual report on the number, ages, and working hours of minors that were employed during the preceding year. In addition, the LC was required to report to the Legislature on the working conditions of minors employed in the plants during the preceding year. SB 912 extended the sunset date to January 1, 2005. SB 1134 (Chesbro) of 2004 extended the sunset date to January 1, 2008. SB 319 (Wiggins) of 2007 extended the sunset date to January 1, 2012. The bill further revised the provisions relating to Lake County by limiting the hours of work exemption to the employment of minors, 16 or 17 years of age, who reside in Lake County upon prior written approval of the Lake County Office of Education. SB 319 also deleted the requirement that a minor be enrolled in school in Lake County for the exemption to apply. REGISTERED SUPPORT / OPPOSITION : Support California Grape and Tree Fruit League Opposition None on file. Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091 AB 1398 Page 5