BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1066|
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THIRD READING
Bill No: AB 1066
Author: Gonzalez (D), Bonta (D), Cristina Garcia (D), Roger
Hernández (D), Jones-Sawyer (D), McCarty (D), and
Thurmond (D), et al.
Amended: 6/22/16 in Senate
Vote: 21
SENATE LABOR & IND. REL. COMMITTEE: 4-1, 6/29/16
AYES: Mendoza, Jackson, Leno, Mitchell
NOES: Stone
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/11/16
AYES: Lara, Beall, Hill, McGuire, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 54-25, 6/2/15 - See last page for vote
SUBJECT: Agricultural workers: wages, hours, and working
conditions
SOURCE: United Farm Workers
DIGEST: This bill removes an exemption in current law that
would extend the payment of overtime compensation to
agricultural employees after eight hours of work in a day or 40
in a week in a phased in implementation.
ANALYSIS:
AB 1066
Page 2
Existing law:
1) Defines a full workday as eight hours, and 40 hours as a
workweek. Overtime wage rates must be paid for any time
worked beyond eight a day and 40 a week.
2) Requires, with some exceptions, the payment of overtime as
follows:
Work in excess of eight hours a day and over 40 hours a
workweek, and the first eight hours on the 7th day in a
workweek shall be compensated at the rate of no less than 1
times the regular rate of pay.
Work in excess of 12 hours in one day shall be
compensated at the rate of no less than twice the regular
rate of pay.
Work in excess of eight hours on any 7th day of a
workweek shall be compensated at no less than twice the
regular rate of pay.
1) Specifies that every person employed in any occupation of
labor is entitled to one day's rest in seven and no employer
shall cause his/her employees to work more than six days in
seven.
2) Provides that employers who violate these provisions are
guilty of a misdemeanor.
3) Exempts any person employed in an agricultural occupation
from all these provisions. (Labor Code §554)
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4) Establishes the Industrial Welfare Commission (IWC) to adopt
or amend working condition orders with respect to break
periods, meal periods, and days of rest for any workers in
the State consistent with existing law.
5) Provides that, under the IWC Wage Order 14, employees
working in an agricultural occupation, as defined, are
entitled to overtime compensation as follows:
Any work in excess of 10 hours in any one workday or
more than six days in any workweek, and the first eight
hours worked on the 7th day must be paid at 1 times the
employee's regular rate of pay;
All hours worked over eight on the 7th day of work must
be paid at double the employee's regular rate of pay.
This bill:
1) Provides that, beginning January 1, 2019, any person
employed in an agricultural occupation shall not be employed
more than 9 hours in any one workday or more than 55 hours
in any one workweek, unless he/she receives 1 times that
employee's regular rate of pay for all hours worked over 9
in a workday or over 55 in a week.
2) Provides that, beginning January 1, 2020, any person
employed in an agricultural occupation shall not be employed
more than nine hours in any one workday or more than 50 hours
in any one workweek, unless he/she receives 1 times that
employee's regular rate of pay for all hours worked over nine
in a workday or over 50 in a week.
3) Provides that, beginning January 1, 2021, any person
employed in an agricultural occupation shall not be employed
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Page 4
more than 8 hours in any one workday or more than 45 hours
in any one workweek, unless he/she receives 1 times that
employee's regular rate of pay for all hours worked over 8
in a workday or over 45 in a week.
4) Provides that, beginning January 1, 2022, any person
employed in an agricultural occupation shall not be employed
more than eight hours in any one workday or more than 40
hours in any one workweek, unless he/she receives 1 times
that employee's regular rate of pay for all hours worked over
eight in a workday or over 40 in a week.
5) Provides that the term "employed in an agricultural
occupation" has the same meaning as the term found in the IWC
wage order for Agricultural Occupations.
6) Provides that, beginning January 1, 2022, any person
employed in an agricultural occupation who works in excess of
12 hours in one day shall be compensated at the rate of no
less than twice the employee's regular rate of pay.
7) Provides that all other provisions of existing law regarding
compensation for overtime work shall apply to workers in an
agricultural occupation beginning January 1, 2019.
8) Authorizes the Governor to temporarily suspend the scheduled
phase-in of overtime requirements set forth above if the
Governor suspends scheduled minimum wage increases for
specified "economic conditions" under provisions of law
enacted this year pursuant to SB 3 (Leno, Chapter 4, Statutes
of 2016).
9) Requires, if the Governor makes such a determination, all
implementation dates to be postponed by an additional year.
This authority shall end upon the final phase-in of overtime
provisions, but not later than January 1, 2022.
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10)Requires the Department of Industrial Relations (DIR) to
update IWC Wage Order 14 to be consistent with the
requirements in this bill, except that any existing
provisions providing greater protections or benefits to
agricultural employees shall continue in full force and
effect.
11)Makes related legislative findings and declarations.
Background
In 1938, Congress passed the Fair Labor Standards Act (FLSA),
which established minimum requirements for labor laws in all
states. The FLSA establishes minimum wage, overtime pay,
recordkeeping, and youth employment standards affecting
employees in the private sector and in federal, state, and local
governments. The overtime provisions of the FLSA were not
extended to agricultural employees. However, as with all
provisions with the FLSA, states are allowed to exceed the
requirements laid out in the federal law.
The issue of overtime for agricultural employees in California
was first dealt with in 1941. Previously, the law had been
silent on this subject. But, in 1941, the Legislature exempted
all agricultural employees from the statutory requirements of
overtime, similar to the FLSA. This statutory exemption was
retained when the eight-hour day was codified in 1999.
This statutory exemption, however, did not prohibit the IWC from
legally promulgating overtime provisions beyond the traditional
eight-hour standard of California law. Currently, the
applicable wage order for agricultural employees requires the
payment of overtime wages when an agricultural employee works
longer than 10 hours in a single day, and more than six days
during any workweek.
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Related/Prior Legislation
AB 2757 (Gonzalez, 2016) was almost identical to this bill and
failed passage on the Assembly Floor. The contents of AB 2757
were amended into this bill (AB 1066) and additionally added
co-authors and clarified that any provisions of the existing IWC
Wage Order for Agricultural Occupations that provide greater
protections or benefits shall continue in full force and effect.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: Yes
According to the Senate Appropriations Committee, the DIR
indicates that it would incur administrative costs in the range
of $326,000 to $586,000 in the first year, and $311,000 to
$563,000 annually thereafter (Labor Enforcement and Compliance
Fund).
SUPPORT: (Verified8/12/16)
United Farm Workers (source)
California State Treasurer John Chiang
Alameda Labor Council
Alliance San Diego
American Civil Liberties Union of California
American Federation of State, County and Municipal Employees
Amigos de los Rios
Asian Americans Advancing Justice-California
Audubon California
Azul
California Catholic Conference
California Coastal Protection Network
California Employment Lawyers Association
California Environmental Justice Alliance
California Immigrant Policy Center
California Labor Federation
California League of Conservation Voters
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California Rural Legal Assistance Foundation
California Teachers Association
Center for Biological Diversity
Center for Environmental Health
Center on Race, Poverty & the Environment
Coalition for Humane Immigrant Rights of Los Angeles
Coastal Environmental Rights Foundation
Committees for Land, Air, Water and Species
Consumer Attorneys of California
Courage Campaign
Dolores Huerta Foundation
Don Saylor, Yolo County Supervisor
Endangered Habitats League
Environment California
Environmental Center of San Diego
Equality California
Farmworker Justice
Food Empowerment Project
Friends Committee on Legislation
La Cooperativa Campesina de California
Latino Coalition for a Healthy California
League of United Latin American Citizens-California Chapter
Lutheran Office of Public Policy CA
Mayor Eric Garcetti, City of Los Angeles
Mexican American Legal Defense and Educational Fund
National Association for the Advancement of Colored
People-California
National Association of Social Workers-California Chapter
Natural Resources Defense Council
Pesticide Action Network
Progressive Women of Napa Valley
Religious Action Center of Reform Judaism
Sacramento Central Labor Council
Sacramento Jewish Community Relations Council
Save Our Shores
Service Employees International Union
Sierra Club California
Southern California Watershed Alliance
The Center of Policy Initiatives
The Kern, Inyo, and Mono Counties Central Labor Council
The League of United Latin American Citizens California Chapters
Trust for Public Land
United Food & Commercial Workers Union-Western States Council
Voices for Progress
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Western Center on Law and Poverty
OPPOSITION: (Verified8/12/16)
Agricultural Council of California
Alhambra Chamber of Commerce
Almond Hullers & Processors Association
Association of California Egg Farmers
California Agricultural Aircraft Association
California Association of Ag and Labor
California Association of Nurseries & Garden Centers
California Association of Wheat Growers
California Association of Winegrape Growers
California Blueberry Association
California Cattlemen's Association
California Chamber of Commerce
California Citrus Mutual
California Cotton Ginners Association
California Cotton Growers Association
California Dairies, Inc.
California Farm Bureau Federation
California Fresh Fruit Association
California League of Food Processors
California Manufacturers & Technology Association
California Pear Growers Association
California Producer Handler-Association
California Seed Association
California State Floral Association
California Tomato Growers Association
California Trucking Association
Community Alliance with Family Farmers
Family Winemakers of California
Far West Equipment Dealers Association
Gilroy Chamber of Commerce
Lodi Chamber of Commerce
Milk Producers Council
National Federation of Independent Business
Nisei Farmers League
Western Agricultural Processors Association
Western Growers Association
Western Plant Health Association
Western United Dairymen
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Wine Institute
ARGUMENTS IN SUPPORT: The author argues that even though
California's farmworkers perform some of the most
physically-demanding jobs with pay and working conditions at
levels that most Americans would not tolerate, they continue to
be excluded from overtime laws enjoyed by most American workers.
Proponents argue that this exclusion can no longer be justified
or tolerated.
Proponents argue that California agriculture is a wealthy,
mature industry that benefits from this unfair overtime
exclusion subsidy that is no longer justified. They note that
in its 2014 agricultural industry report, the California
Department of Food and Agriculture found that the state's
76,000+ farms and ranches had combined revenue of approximately
$54 billion. Proponents argue that the agricultural industry has
been profitable despite the fact that farmworkers are earning an
annual average salary of $14,000, and roughly 30 percent of
households with farmworker income are below the poverty line and
73 percent earn less than 200 percent of poverty (a threshold
used in many public assistance programs). They argue that it is
time for California to support and extend fair overtime
compensation to hundreds and thousands of agricultural workers.
ARGUMENTS IN OPPOSITION: A coalition of California
agricultural producers are opposed to this bill, arguing the
following:
This bill will hurt farmworkers: $1.5 billion in reduced
wages; $4,500 in reduced income per farmworker; 16% reduction
in farmworker income.
This bill will hurt farm production: $5.4 billion loss in crop
production; the removal of 1.25 million farmed acres; 7.2%
decrease in crop production.
This bill will hurt the economy: up to 78,000 lost farm,
processing, transport, and support industry jobs; $7.8 billion
in lost income statewide.
Farmers in California must compete with farmers in other
states and countries that already have far lower wage costs.
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California is already at a competitive disadvantage as it is
one of only a few states that require any overtime pay for
agricultural workers, and our requirement for daily overtime
is already the most expensive. This bill will exacerbate this
disadvantage.
Opponents also note that this bill cannot be viewed in isolation
and argues that California saddles its farmers with the highest
regulatory costs and compliance burdens in the nation. They
argue that this bill will end up hitting many workers in their
wallet as farmers may be forced to pay higher overtime costs
during peak harvest, but for the tens of thousands of workers
who are employed year round the pressures of cost avoidance will
translate to fewer hours worked as farmers add additional
employees to avoid overtime costs.
ASSEMBLY FLOOR: 54-25, 6/2/15
AYES: Alejo, Bloom, Bonilla, Bonta, Brown, Burke, Calderon,
Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd,
Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto,
Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández,
Holden, Irwin, Jones-Sawyer, Levine, Linder, Lopez, Low,
McCarty, Medina, Mullin, Nazarian, O'Donnell, Perea, Quirk,
Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone,
Thurmond, Ting, Waldron, Weber, Williams, Wood, Atkins
NOES: Achadjian, Travis Allen, Baker, Bigelow, Brough, Chang,
Dahle, Beth Gaines, Gallagher, Grove, Hadley, Harper, Jones,
Kim, Lackey, Maienschein, Mathis, Mayes, Melendez, Obernolte,
Olsen, Patterson, Steinorth, Wagner, Wilk
NO VOTE RECORDED: Chávez
Prepared by:Alma Perez-Schwab/ L. & I.R. / (916) 651-1556
8/15/16 20:02:00
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