BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 970


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          Date of Hearing:  April 22, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          970 (Nazarian) - As Amended April 15, 2015


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          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


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          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. 










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          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
          














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