BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2743
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2743 (Labor and Employment Committee)
          As Introduced  February 27, 2014
          Majority vote 

           LABOR & EMPLOYMENT         5-0  APPROPRIATIONS      12-5        
           
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          |Ayes:|Roger Hernández, Alejo,   |Ayes:|Gatto, Bocanegra,         |
          |     |Chau, Holden,             |     |Bradford,                 |
          |     |Ridley-Thomas             |     |Ian Calderon, Campos,     |
          |     |                          |     |Eggman, Gomez, Holden,    |
          |     |                          |     |Pan, Quirk,               |
          |     |                          |     |Ridley-Thomas, Weber      |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Bigelow, Allen, Donnelly, |
          |     |                          |     |Linder, Wagner            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes a clarifying change to add a statutory  
          cross-reference to the provision of existing law related to  
          "waiting time" penalties.  

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill will result in minor and absorbable costs  
          to the Department of Industrial Relations.

           COMMENTS  :  When an employee is discharged, the wages earned and  
          unpaid at the time of discharge are due and payable immediately.  
           When an employee quits, their final wages are generally due not  
          less than 72 hours later, unless they had given 72 hours  
          previous notice of their intention to quit.  If the employer  
          willfully fails to pay any wages of an employee who is  
          discharged or who quits, the wages of the employee continue as a  
          penalty for up to 30 days.  (Labor Code Section 203).  These  
          wages are often referred to as "waiting time" penalties and are  
          generally designed to ensure the prompt payment of earned wages.

          As an exception to the time for final payment of wages discussed  
          above, certain industries have special time periods for the  
          final payment of wages due to the unique nature of their  
          industries.  For example, payment of wages for employees laid  
          off or discharged from production of motion pictures may be made  








                                                                  AB 2743
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          by the next regular payday.  (Labor Code Section 201.5).   
          Existing law also has special provisions related to temporary  
          service employees, which generally requires weekly pay.  (Labor  
          Code Section 201.3).

          Labor Code Section 203 specifically cross-references these  
          special labor code provisions to provide that the "waiting time"  
          penalties are still applicable once the special time for payment  
          of wages has lapsed.  However, Labor Code Section 203 fails to  
          cross-reference one special rule for final payment of wages -  
          those governing live theatrical and concert events.  Current law  
          allows employees at venues that host live theatrical and concert  
          events and their employers to enter into a collective bargaining  
          agreement to establish a time limit for payment of wages after  
          an employee is discharged or laid off.  (Labor Code Section  
          201.9).  This appears to be an oversight, and this bill will  
          amend the law to add to Labor Code Section 203 the appropriate  
          cross-reference to Labor Code Section 201.9.

           
          Analysis Prepared by  :    Ben Ebbink / L. & E. / (916) 319-2091
                                                                FN: 0003125