BILL ANALYSIS �
AB 208
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Date of Hearing: May 8, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 208 (Gorell) - As Introduced: January 30, 2013
Policy Committee: PERSSVote:6-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill prohibits a salaried state employee from taking an
additional hourly wage job in the same department or agency
unless this prohibition is in conflict with a memorandum of
understanding.
FISCAL EFFECT
This bill could lead to increased costs in the hundreds of
thousands of dollars if agencies hire additional employees and
pay benefits costs or institute mandatory overtime in place of
using additional appointments.
COMMENTS
1)Purpose . According to the author, news reports stated the
California Public Employees' Retirement System (CalPERS) paid
50 managers an average of $900 each in November to work in
hourly positions within the same department and further
investigation found hundreds of managers and supervisors in at
least 11 state agencies were moonlighting with second jobs in
their own department. The author argues moonlighting is
problematic for accountability reasons as there are questions
of when state workers are clocking into their hourly paid job
and whether their hourly job duties are substantially
different than their salaried job. The author points out if
the second appointment job is substantially similar to the
employee's first job, then employee is taking advantage of a
loophole contrary to the purpose of a salaried position and
circumventing the Legislature's intent for salaried state
employees.
AB 208
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2)Background . In the parlance of state civil service, an
additional appointment is a position in addition to an
employee's primary employment. The additional position may be
with the same agency or a different agency. The practice is
permitted in state service and is used by a number of
agencies. The State Controller's office revealed that in 2012
alone, 1,910 state workers were moonlighting in both full- and
part-time positions.
On January 30, 2013, the Department of Human Resources (CalHR)
announced it was in the process of reviewing relevant laws,
rules and procedures that have been applied to the use of
additional appointments and effective immediately, departments
are no longer authorized to make any new Additional
Appointments. CalHR followed up with additional guidance that
ended additional appointments for managers and supervisors,
citing as members of the management team they should perform
work as needed to ensure a department meets its mission. They
laid out options for departments, including mandatory
overtime, limited term assignments and other flexible
employment arrangements.
3)CalPERS . CalPERS states that they used additional
appointments to launch the pension fund's state-of-the-art
computer system, to reduce backlogs and to improve customer
service levels. However, according to CalPERS once it became
apparent that there were various interpretations of the use of
additional appointments across all state departments, they
suspended their use effective January 1, 2013. CalPERS
estimates they saved up to $1.6 million through use of
additional appointments instead of hiring additional employees
or using contractors.
Analysis Prepared by : Roger Dunstan / APPR. / (916) 319-2081