BILL ANALYSIS Ó
AB 67
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Date of Hearing: April 15, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
67 (Gonzalez) - As Introduced December 17, 2014
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
AB 67
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This bill enacts the Double Pay on the Holiday Act of 2015.
Specifically, this bill:
1)Requires any work on a "family holiday" to be compensated at
no less than twice the employee's regular rate of pay. Defines
"family holiday" as either December 25 or the fourth Thursday
of November of each year (Thanksgiving).
2)Specifies the requirements of the bill are in addition to and
independent of any other rights, remedies, or procedures
available under any other law to an aggrieved employee.
3)Exempts an employee covered by a valid collective bargaining
agreement if the agreement includes the wages, hours of work
and working conditions of employees; paid sick days or a paid
leave or paid time off policy that permits the use of sick
days for those employees; final and binding arbitration of
disputes concerning the application of the holiday premium pay
previsions; premium wage rates for all overtime hours worked;
and, regular hourly rate of pay not less than 30 percent more
than the state's minimum wage.
4)Defines "employer" as any person employing another under any
arrangement or contract of hire that includes the state,
political subdivisions of the state, or municipalities.
FISCAL EFFECT: Unknown General Fund costs, potentially in the
low millions, to provide state employees and in home supportive
services (IHSS) providers not covered by a valid collective
bargaining agreement with two times the regular rate of pay for
work provided on a "family holiday".
There are 462,000 IHSS providers, many of whom work on
AB 67
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Thanksgiving or Christmas and are not covered under a valid
collective bargaining agreement. For illustration, if 10 percent
of IHSS providers were provided double pay for one day of work,
the state would incur costs of approximately $4.7 million.
COMMENTS:
1)Purpose. According to the author, in recent years, Black
Friday shopping deals have increasingly spread into the
Thanksgiving holiday, forcing workers to give up their holiday
or risk losing their jobs. The author contends that requiring
employers in California to pay at least two times the regular
rate of pay on Christmas or Thanksgiving will increase the
level of respect for California's workers, assist in paying
towards a living wage, and perhaps reevaluate holiday work
policies.
2)Paid and unpaid holidays. California law does not require an
employer to provide its employees with paid holidays, to close
its business on any holiday, or give employees the day off for
any particular holiday. An employer's decision to close its
business on holidays and give its employees time off from work
with or without pay, or to pay overtime wages on holidays,
results from an adopted employer policy or practice, the terms
of a collective bargaining agreement, or the terms of an
employment agreement.
State government code entitles employees required to work on
any of the 12 paid holidays to straight-time pay and eight
hours of holiday credit. This bill amends the labor code and
may be in conflict with existing government code provisions.
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3)Opposition. The opposition, including the California Chamber
of Commerce, raises concerns that the bill increases costs,
creates a competitive disadvantage and potentially violates
employers' constitutional rights by forcing employers to
recognize certain days as "family holidays". They note that
certain business models, such as hospitals, medical facilities
and lodging accommodations need to stay open during these
holidays for the public benefit. Further, they note the bill
applies to exempt, salaried employees, who could be entitled
to double compensation for the entire "family holiday" even if
only one hour of work was performed.
Analysis Prepared by:Misty Feusahrens / APPR. / (916)
319-2081