BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2230|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 2230
Author: Chu (D)
Amended: 6/22/16 in Senate
Vote: 21
SENATE LABOR & IND. REL. COMMITTEE: 5-0, 6/29/16
AYES: Mendoza, Stone, Jackson, Leno, Mitchell
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 5/23/16 - See last page for vote
SUBJECT: Overtime compensation: private elementary or
secondary academic institutions: teachers
SOURCE: Author
DIGEST: This bill creates a new overtime exemption for private
school teachers that is tied to comparable public school teacher
salaries, rather than the state minimum wage.
ANALYSIS:
Existing law:
1)Requires any work in excess of eight hours in one workday and
any work in excess of 40 hours in any one workweek to be
compensated at the rate of no less than one and one-half times
the regular rate of pay for an employee. (Labor Code §510)
AB 2230
Page 2
2)Exempts private school teachers from the requirements of
overtime if the teacher is paid a monthly salary that is the
equivalent of at least twice the state minimum wage for full
time employment. (Labor Code §515.8)
3)Defines a private school teacher as an employee who is
primarily engaged in the duty of imparting knowledge to pupils
by teaching, instructing, or lecturing and customarily and
regularly exercises discretion and independent judgment in
performing the duties of a teacher. (Labor Code §515.8)
4)Sets the current California minimum wage at $10.00 per hour.
(Labor Code §1182.12)
5)Increases, incrementally, starting January 1, 2017, the
state's minimum wage, depending on the size of the employer
and future economic conditions, to $15 per hour and then ties
annual minimum wage increases to the U.S. Consumer Price Index
(CPI), which is a measure of inflation. (Labor Code §1182.12)
This bill strikes the current overtime exemption for private
school teachers and instead requires that, in order to be exempt
from overtime, private school teachers must make the greater of
either:
1)No less than 100 percent of the lowest salary offered by any
school district to a person who is in a position that requires
the person to have a valid California teaching credential and
is not employed in that position pursuant to an emergency
permit, intern permit, or waiver.
2)The equivalent of no less than 70 percent of the lowest
schedule salary offered by the school district or county in
which the private elementary or secondary academic institution
is located to a person who is in a position that requires the
person to have a valid California teaching credential and is
not employed in that position pursuant to an emergency permit,
intern permit, or waiver.
Comments
1)Need for this bill. As noted above, under existing law
AB 2230
Page 3
private school teachers are exempted from overtime if they
make at least twice the minimum wage. Starting in January 1,
2017, the State of California will begin to gradually increase
the state minimum wage, which will eventually be indexed to
the CPI once the minimum wage reaches $15 per hour. The CPI
increase would be calculated on August 1st and take effect
January 1 of the following year. For private schools that
calculate their budgets prior to the beginning of the school
year, this can present a moving target for calculating the
level of wages that would trigger the overtime exemption.
AB 2230 simplifies this calculation by tying private school
wages to a set percentage of comparable public school wages.
Related/Prior Legislation
AB 2613 (Mullin, Chapter 159, Statutes of 2006) created the
current private school teacher overtime exemption.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified8/2/16)
California Association of Private School Organizations
California Catholic Conference, Inc.
OPPOSITION: (Verified8/2/16)
None received
ARGUMENTS IN SUPPORT: Proponents note that private school
teachers are currently exempted from overtime if they are paid
twice the minimum wage. However, proponents note that this
calculation is arbitrary and not based on the day-to-day
realities of the teaching profession and local economic
variation. Proponents argue that AB 2230 will address these
inadequacies by tying the private teacher overtime to the
AB 2230
Page 4
salaries of public school teachers, establishing a wage floor
for private school teachers that will increase in step with
earnings received by public school counterparts. Proponents also
argue that AB 2230 will help ensure that private school teachers
employed in more affluent communities receive higher levels of
compensation, while still ensuring that private school teachers
who teach in less affluent areas are not denied reasonable
compensation.
ASSEMBLY FLOOR: 77-0, 5/23/16
AYES: Achadjian, Alejo, Travis Allen, Atkins, Baker, Bigelow,
Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos,
Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh,
Dahle, Daly, Dodd, 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, Mathis, Mayes, McCarty, Medina,
Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,
Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth,
Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk,
Williams, Wood, Rendon
NO VOTE RECORDED: Arambula, Eggman, Patterson
Prepared by:Gideon L. Baum / L. & I.R. / (916) 651-1556
8/3/16 19:00:43
**** END ****