BILL ANALYSIS Ó AB 1926 Page 1 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 AB 1926 Page 2 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). AB 1926 Page 3 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 AB 1926 Page 4 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 AB 1926 Page 5 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. AB 1926 Page 6 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) AB 1926 Page 7 Opposition None on file. Analysis Prepared by:Ben Ebbink / L. & E. / (916) 319-2091