BILL NUMBER: AB 2103 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Ammiano
FEBRUARY 23, 2012
An act to amend Section 500 515 of
the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2103, as amended, Ammiano. Employment: wages and hours:
overtime.
(1) Existing law, with certain exceptions, establishes 8 hours as
a day's work and a 40-hour workweek, and requires payment of
prescribed overtime compensation for additional hours worked. A
violation of overtime compensation laws is a crime. Existing law
provides that for the purpose of computing the overtime rate of
compensation required to be paid to a nonexempt full-time salaried
employee, the employee's regular hourly rate shall be1/40th of the
employee's weekly salary.
This bill would provide that payment of a fixed salary to a
nonexempt employee shall be deemed to provide compensation only for
the employee's regular, nonovertime hours, notwithstanding any
private agreement to the contrary. Because a violation of this
provision would be a crime, the bill would impose a state-mandated
local program.
(2)The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Existing law, with certain exceptions, establishes 8 hours as a
day's work and a 40-hour workweek, and requires payment of prescribed
overtime compensation for additional hours worked. Existing law
authorizes the adoption by 2/3 of employees in a work unit of
alternative workweek schedules providing for workdays no longer than
10 hours within a 40-hour workweek. Existing law also includes
definitions of terms used in these provisions.
This bill would make a nonsubstantive change to those definitions.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature, in
enacting this act, to overturn the decision in Arechiga v. Dolores
Press (2011) 192 Cal.App.4th 567.
SEC. 2. Section 515 of the Labor Code
is amended to read:
515. (a) The Industrial Welfare Commission may establish
exemptions from the requirement that an overtime rate of compensation
be paid pursuant to Sections 510 and 511 for executive,
administrative, and professional employees, provided that
if the employee is primarily engaged in the
duties that meet the test of the exemption, customarily and regularly
exercises discretion and independent judgment in performing those
duties, and earns a monthly salary equivalent to no less than two
times the state minimum wage for full-time employment. The commission
shall conduct a review of the duties that meet the test of the
exemption. The commission may, based upon this review, convene a
public hearing to adopt or modify regulations at that hearing
pertaining to duties that meet the test of the exemption without
convening wage boards. Any hearing conducted pursuant to this
subdivision shall be concluded not later than July 1, 2000.
(b) (1) The
commission may establish additional exemptions to hours of work
requirements under this division where it finds that hours or
conditions of labor may be prejudicial to the health or welfare of
employees in any occupation, trade, or industry. This paragraph shall
become inoperative on January 1, 2005.
(2) Except as otherwise
provided in this section and in subdivision (g) of Section 511,
nothing in this section requires the commission to alter any
an exemption from provisions regulating hours
of work that was contained in any a
valid wage order in effect in 1997. Except as otherwise provided in
this division, the commission may review, retain, or eliminate
any an exemption from provisions
regulating hours of work that was contained in any
a valid wage order in effect in 1997.
(c) For the purposes of this section su
bdivision (a) , "full-time employment" means
employment in which an employee is employed for 40 hours or more
per week.
(d) (1) For the purpose of computing the
overtime rate of compensation required to be paid to a nonexempt
full-time salaried employee, the employee's regular hourly rate shall
be1/40th of the employee's weekly salary.
(2) Payment of a fixed salary to a nonexempt employee shall be
deemed to provide compensation only for the employee's regular,
nonovertime hours, notwithstanding any private agreement to the
contrary.
(e) For the purposes of this section, "primarily" means more than
one-half of the employee's worktime.
(f) (1) In addition to the requirements of subdivision (a), a
registered nurses nurse employed
to engage in the practice of nursing shall not be exempted from
coverage under any part of the orders of the
Industrial Welfare Commission, unless they he
or she individually meet meets
the criteria for exemptions established for executive or
administrative employees.
(2) This subdivision does not apply to any of the following:
(A) A certified nurse midwife who is primarily engaged in
performing duties for which certification is required pursuant to
Article 2.5 (commencing with Section 2746) of Chapter 6 of Division 2
of the Business and Professions Code.
(B) A certified nurse anesthetist who is primarily engaged in
performing duties for which certification is required pursuant to
Article 7 (commencing with Section 2825) of Chapter 6 of Division 2
of the Business and Professions Code.
(C) A certified nurse practitioner who is primarily engaged in
performing duties for which certification is required pursuant to
Article 8 (commencing with Section 2834) of Chapter 6 of Division 2
of the Business and Professions Code.
(D) Nothing in this paragraph shall exempt the occupations set
forth in subparagraphs (A), (B), and (C) from meeting the
requirements of subdivision (a).
SEC. 3. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SECTION 1. Section 500 of the Labor Code is
amended to read:
500. For purposes of this chapter, the following terms shall have
the following meanings:
(a) "Workday" and "day" mean any consecutive 24-hour period
commencing at the same time each calendar day.
(b) "Workweek" and "week" mean any seven consecutive days,
starting with the same calendar day each week. "Workweek" is a fixed
and regularly recurring period of 168 hours comprising seven
consecutive 24-hour periods.
(c) "Alternative workweek schedule" means any regularly scheduled
workweek requiring an employee to work more than eight hours in a
24-hour period.