BILL ANALYSIS                                                                                                                                                                                                    Ó





          SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
                             Senator Tony Mendoza, Chair
                                2015 - 2016  Regular 

          Bill No:               AB 1311      Hearing Date:    June 8,  
          2016
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          |Author:    |Cooper                                               |
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          |Version:   |January 7, 2016                                      |
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          |Urgency:   |Yes                    |Fiscal:    |Yes              |
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          |Consultant:|Gideon Baum                                          |
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                   Subject:  Temporary services employees:  wages


          KEY ISSUE
          
          Should the Legislature allow temporary services employers to pay  
          temporary private security officers based on a workweek  
          (Friday-Thursday) rather than a calendar week (Sunday-Saturday)?

          ANALYSIS
          
           Existing law:

               1)    Defines "temporary services employer" as an employing  
                unit that contracts with clients or customers to supply  
                workers to perform services for the clients or customers  
                and performs certain specified functions, including  
                determining assignments and paying the worker.

              2)    Provides that a temporary services employer must pay  
                his or her employees no less frequently than weekly and  
                not later than the regular payday of the following  
                calendar week.

              3)    Exempt temporary employees from the above-discussed  
                requirements if the employee's assignment is for 90 days  








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                or longer and the employee is not currently paid weekly.
                (Labor Code §201.3)
           
          This bill:  
          
             1)   Provides that if an employee of a temporary services  
               employer is employed as a registered security officer, his  
               or her wages are due and payable no less frequently than  
               weekly, regardless of when the assignment ends, and must be  
               due and payable not later than the regular payday of the  
               following workweek.

             2)   Declares the provisions above as necessary for the  
               immediate preservation of the public peace, health, or  
               safety and must go into effect immediately.



          
          COMMENTS
          
          1.  Need for this bill?

            AB 1311 addresses an unusual court case that dealt with the  
            timing of wages for security guards, Specifically, in Huff v.  
            Securitas Security Services, Case No. 1-10-CV-172614 (2015),  
            Securitas successfully argued that it has not violated the  
            temporary services employer requirements as all of the  
            claimants had assignments in excess of 90 days. With  
            assignments of that length, security guards are explicitly  
            exempted from the provisions of Labor Code Section 201.3,  
            which was discussed earlier.

            However, in determining this calculation, the court used a  
            calendar week of Sunday to Saturday, which is not the work  
            week utilized by Securitas. Rather, this is the default  
            calendar week used by the Division of Labor Standards  
            Enforcement (DLSE) for enforcement purposes. Securitas and  
            other security firms utilize a Friday to Thursday workweek,  
            which Proponents note reflects the fact that their employees  
            frequently work on the weekends, unlike many employers.

            AB 1311 would provide that, if a temporary employee is  
            employed as a security officer, the employee's wages are due  
            weekly and due and payable on the regular payday of the  







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            following workweek.

          2.  Proponent Arguments  :
            
            Proponents argue that most security services firms define the  
            workweek as Friday to Thursday, and that this schedule is born  
            of the specific industrial requirements of the security  
            industry.  Proponents argue that AB 1311 is not an attempt to  
            change the weekly payroll rule, but rather an industry  
            specific standard that will assist temporary services  
            employers in complying with the law without impacting the  
            rights of employees.  

          3.  Opponent Arguments  :

            None on file.

          4.  Prior Legislation  :

            SB 940 (Yee), Chapter 169, Statutes of 2008, creates the  
            temporary services employer pay provisions discussed above.


          SUPPORT
          
          California Association of Licensed Security Agencies, Guards and  
          Associates
          

          OPPOSITION
          

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