BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1311| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 1311 Author: Cooper (D) Amended: 1/7/16 in Assembly Vote: 27 - Urgency SENATE LABOR AND IND. REL. COMMITTEE: 4-0, 6/8/16 AYES: Mendoza, Stone, Leno, Mitchell NO VOTE RECORDED: Jackson SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR: 78-0, 1/27/16 (Consent) - See last page for vote SUBJECT: Temporary services employees: wages SOURCE: Author DIGEST: This bill allows 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 AB 1311 Page 2 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)Exempts temporary employees from the above-discussed requirements if the employee's assignment is for 90 days 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 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. AB 1311 Page 3 However, in determining this calculation, the court used a calendar week of Sunday to Saturday, which is not the workweek utilized by Securitas. Rather, this is the default calendar week used by the Division of Labor Standards Enforcement 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 provides 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 following workweek. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes SUPPORT: (Verified6/27/16) California Association of Licensed Security Agencies, Guards and Associates OPPOSITION: (Verified6/27/16) None received ARGUMENTS IN SUPPORT: 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 AB 1311 Page 4 rather an industry specific standard that will assist temporary services employers in complying with the law without impacting the rights of employees. ASSEMBLY FLOOR: 78-0, 1/27/16 AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NO VOTE RECORDED: Mathis Prepared by: Gideon L. Baum / L. & I.R. / (916) 651-1556 6/29/16 15:50:35 **** END ****