BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 1311|
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                                       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  








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            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.









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          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  








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          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


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