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 ----------------------------------------------------------------- |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 Page 2 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