BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1926


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          Date of Hearing:  April 20, 2016


                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT


                               Roger Hernández, Chair


          AB 1926  
          (Cooper) - As Amended March 30, 2016


          SUBJECT:  Public works: prevailing wage: apprentices


          SUMMARY:  Provides that certain time spent by apprentices on  
          public works projects shall be paid at prevailing wage rates.   
          Specifically, this bill:  Specifies that, unless otherwise  
          provided by a collective bargaining agreement, when a contractor  
          requests the dispatch of an apprentice to perform work on a  
          public works project and requires the apprentice to fill out an  
          application, or undergo testing, training, an examination, or  
          other pre-employment process as a condition of employment, the  
          apprentice shall be paid for time spent on the required  
          activity, including travel time, at the prevailing wage rate for  
          apprentices in the trade to which he or she is registered.


          EXISTING LAW: 


          1)Requires that, except as specified, not less than the general  
            prevailing rate of per diem wages be paid to workers employed  
            on public works projects. 


          2)Provides that an apprentice employed upon public works is  
            required to be paid the prevailing rate of per diem wages for  








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            apprentices in the trade to which he or she is registered and  
            to be employed only at the work of the craft or trade to which  
            he or she is registered, as specified.


          FISCAL EFFECT:  Unknown


          COMMENTS:  This bill provides that certain time spent by  
          apprentices on public works projects shall be paid at prevailing  
          wage rates.  According to the author, this bill will help  
          apprentices continue with their apprenticeship training program  
          by ensuring they receive fair compensation when dispatched to a  
          construction site ready and prepared to work, complete certain  
          pre-employment requirements at the request of the contractor,  
          but are not hired by the contractor for that project.


          "Hours Worked" Under Existing Law


          According to the Division of Labor Standards Enforcement's  
          (DLSE's) Enforcement Policies and Interpretation Manual, "Under  
          the basic definition set out in all of the IWC Orders, 'Hours  
          Worked' means the time during which an employee is subject to  
          the control of any employer, and includes all of the time the  
          employee is suffered or permitted to work, whether or not  
          required to do so?Where it is determined that the employee's  
          time is subject to the control of the employer?the time  
          constitutes 'hours worked'."  (DLSE Manual Section 46.1).  See  
          also, Morillion v. Royal Packing Co., 22 Cal. 4th 575 (2000).


          













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          Travel Time Under Existing Law


          With respect to travel time, the DLSE Manual states:


            "If an employee is required to report to the employer's  
            business premises before proceeding to an off-premises work  
            site, all of the time from the moment of reporting until the  
            employee is released to proceed directly to his or her home is  
            time subject to the control of the employer, and constitutes  
            hours worked."  (DLSE Manual Section 46.2).


          However, an employer may establish different pay rates for  
          travel time.  As the DLSE Manual provides:


            "The employer may establish a different pay scale for travel  
            time (not less than minimum wage) as opposed to the regular  
            work time rate. The employee must be informed of the different  
            pay rate for travel before the travel beings."  (DLSE Manual  
            Section 46.3.2).


          Training Time Under Existing Law


          According to the DLSE Manual: 


            "The Division utilizes the standards announced by the U.S.  
            Department of Labor contained at 29 CFR §§ 785.27 through  
            785.31 in regard to lectures, meetings and training programs:  
            Time spent by employees attending training programs, lectures  
            and meetings are not counted as hours worked if the attendance  








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            is voluntary on the part of the employee and all the following  
            criteria are met: 


            1. Attendance is outside regular working hours; 


            2. Attendance is voluntary: attendance is not voluntary if the  
            employee is led to believe that present working conditions or  
            the continuation of employment would be adversely affected by  
            nonattendance; 


            3. The course, lecture, or meeting is not directly related to  
            the employee's job: training is directly related to an  
            employee's job if it is designed to make the employee handle  
            his job more effectively as distinguished from training him  
            for another job or to a new or additional skill; and 


            4. The employee does not perform any productive work during  
            such attendance


            All training programs, lectures, meetings, etcetera which do  
            not meet the above criteria are hours worked.  If any one of  
            the above listed criterion is not met, the time is to be  
            considered 'hours worked'."  (DLSE Manual Section 46.6.5).


          Arguments in Support


          


          According to the author and sponsors, public works projects  
          throughout California are required to use apprentices in order  
          to promote a new generation of skilled and trained workers that  








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          are readily available to accomplish the infrastructure needs of  
          our state.  Public works contractors are specifically required  
          to utilize one hour of apprentice work for every five hours of  
          work performed by a journeyperson.


           


          To meet these requirements, contractors request apprentices from  
          a state approved apprenticeship program in their geographic  
          region.  The contractor simply calls the approved apprenticeship  
          program or committee, relays his or her request for apprentices,  
          and the program dispatches the apprentices to the contractor. 





          Contractors benefit from hiring apprentices by: paying a lower  
          rate than the journeyperson rate, not having to run their own  
          training programs to find skilled workers, and increased  
          productivity as apprentices are motivated to advance and  
          achieve.  This process provides an assurance that new  
          apprentices entering a specific craft will be guaranteed high  
          quality training leading to skilled craftsmen/women or  
          journeyperson status.





          The sponsors argue that an apprentice is completely responsible  
          to arrive on time and ready for work.  Apprentices and  
          construction workers are always required to travel to where the  
          work is. However, when an apprentice is dispatched, but not put  
          to work they lose out on an entire day's wages and miss the  
          opportunity to learn new skills to advance in their training. 









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          Therefore, this bill provides apprentices dispatched to  
          contractors with their properly owed prevailing wage rate in the  
          event a contractor does not use the apprentice for construction  
          work, but requires the apprentice to undergo testing, added  
          safety training, or any other pre-employment requirements.  The  
          apprentice would receive payment only for the time spent on the  
          required activity.





          There is no known opposition on file.


          


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Labor Federation, AFL-CIO


          California-Nevada Conference of Operating Engineers


          State Building and Construction Trades Council (sponsor)










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          Opposition


          None on file.




          Analysis Prepared by:Ben Ebbink / L. & E. / (916) 319-2091