BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2230


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          2230 (Chu)


          As Amended  June 22, 2016


          Majority vote


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                 (vote not relevant)




          Original Committee Reference:  INS.


          SUMMARY:  Amends an existing overtime exemption for private  
          school teachers to tie the exemption to comparable public school  
          teacher salaries, rather than the state minimum wage.


          The Senate amendments delete the contents of the bill and  
          instead provide that an existing overtime exemption for private  
          school teachers applies if, on and after July, 2017, the  
          employee earns the greater of the following:


          1)No less than 100% 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,  








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            intern permit, or waiver.


          2)The equivalent of no less than 70% of the lowest schedule  
            salary offered by the school district or county in which the  
            private school 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.


          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.


          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.


          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.


          4)Sets the current California minimum wage at $10 per hour.


          5)Starting January 1, 2017, incrementally increases 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 United States Consumer Price  
            Index (CPI), which is a measure of inflation. (Labor Code  
            Section  (LAB) 1182.12)








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          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  Under existing law, 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 consumer price index (CPI) once the  
          minimum wage reaches $15 per hour.  The CPI increase would be  
          calculated on August 1st and take effect the January 1 of the  
          following year.  For private schools that calculate their  
          budgets prior the beginning of the school year, this can present  
          a moving target for calculating the level of wages that would  
          trigger the overtime exemption.


          This bill would simplify this calculation by tying private  
          school wages to a set percentage of comparable public school  
          wages.


          Supporters note that private school teachers are currently  
          exempted from overtime if they are paid twice the minimum wage.   
          However, supporters note that this calculation is arbitrary and  
          not based on the day-to-day realities of the teaching profession  
          and local economic variation.  Supporters argue that this bill  
          will address these inadequacies by tying the private teacher  
          overtime to the 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.   
          Supporters also argue that this bill 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. 


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








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