BILL ANALYSIS Ó
AB 970
Page 1
Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
970 (Nazarian) - As Amended April 15, 2015
-----------------------------------------------------------------
|Policy |Labor and Employment |Vote:|5 - 2 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY: This bill authorizes the Labor Commissioner to enforce
local laws regarding overtime hours or minimum wage provisions
and to issue citations and penalties for violations, except when
a local entity with jurisdiction in the matter has already
issued a citation or has initiated an investigation against an
employer for the same violation. Specifically, this bill:
AB 970
Page 2
1)Authorizes the Labor Commissioner to issue a citation if, upon
inspection or investigation, it is determined that a person
has violated overtime requirements of existing law, including
any applicable local overtime law.
2)Authorizes the Labor Commissioner to issue a citation if, upon
inspection or investigation, it is determined a person has
paid less than the minimum wage under applicable state or
local law.
3)Authorizes the Labor Commissioner to issue a citation against
an employer or person acting on behalf of an employer for
violations of existing law related to reimbursements for
expenses.
4)Prohibits the Labor Commissioner from issuing a citation for
the above offenses if the local entity with jurisdiction in
the matter has cited or has initiated an investigation against
the employer for the same violation.
FISCAL EFFECT:
Ongoing costs of approximately $125,000 (special funds) to the
Department of Industrial Relations (DIR) Bureau of Field
Enforcement (BOFE) to cite wage violations. Although BOFE
currently engages in field enforcement and has the authority to
cite for violations of minimum wage, this bill will apply a
local wage calculation rather than the state minimum wage. This
new authorization could require more investigative work and
result in increased workload.
AB 970
Page 3
COMMENTS:
1)Background. Existing law requires an employer to indemnify his
or her employees for "all necessary expenditures or losses"
incurred by the employee in direct consequence of his or her
duties. A common violation of this provision involves illegal
charges for tools or equipment necessary to perform the job,
but which are deducted from workers' pay notwithstanding.
Workers may file a civil action to recover these illegal
deductions from their pay, or may seek to recover them in a
wage claim hearing (also referred to as a Berman hearing).
Currently, the Labor Commissioner does not have the authority
to issue a citation for this violation, even if she determines
upon inspection or investigation that the charges are illegal
and have not been repaid to the worker. This bill would
specifically authorize the Labor Commissioner to issue
citations in such situations.
2)Purpose. This bill also extends local citation authority to
the Labor Commissioner with regard to enforcement of local
minimum wage violations. The Labor Commissioner currently has
the authority to cite for violations of state minimum wage but
not for higher local minimum wage violations. The only way to
address these claims currently is through the wage claim
hearing process.
Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081
AB 970
Page 4