Amended in Assembly March 15, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2363

Introduced by Assembly Member Low

February 18, 2016

An act begin delete to amend Section 201 of the Labor Code, relating to employment. end delete begin insert relating to state employment. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2363, as amended, Low. begin delete Payment of wages. end delete begin insert State employment: State Bargaining Unit 16: memorandum of understanding. end insert

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Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.

end insert begin insert

This bill would approve provisions of a memorandum of understanding entered into between the state employer and State Bargaining Unit 16 that require the expenditure of funds and would provide that these provisions will become effective if these provisions are approved by the Legislature in legislation other than the annual Budget Act. The bill would provide that provisions of the memorandum of understanding approved by the bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature and would require the state employer and the employee organization to meet and confer to renegotiate if funds for those provisions are not specifically appropriated by the Legislature.

end insert begin delete

Under existing law, an employer who discharges or lays off employees must pay wages earned but unpaid within specified time limits.

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This bill would make technical, nonsubstantive changes to that provision.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert The Legislature finds and declares that the
purpose of this act is to approve an agreement pursuant to Section
3517.5 of the Government Code entered into by the state employer
and State Bargaining Unit 16. end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert The provisions of the memorandum of understanding
prepared pursuant to Section 3517.5 of the Government Code and
entered into by the state employer and Union of American
Physicians and Dentists, State Bargaining Unit 16, dated ____,
that require the expenditure of funds are hereby approved for the
purposes of subdivision (b) of Section 3517.6 of the Government
Code. end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert The provisions of the memorandum of understanding
approved by Section 2 of this act that require the expenditure of
funds shall not take effect unless funds for these provisions are
specifically appropriated by the Legislature. If funds for these
provisions are not specifically appropriated by the Legislature,
the state employer and the affected employee organization shall
meet and confer to renegotiate the affected provisions. end insert begin insert end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Notwithstanding Section 3517.6 of the Government
Code, the provisions of the memorandum of understanding included
in Section 2 that require the expenditure of funds shall become
effective even if the provisions of the memorandum of
understanding are approved by the Legislature in legislation other
than the annual Budget Act. end insert

begin delete

SECTION 1.  

Section 201 of the Labor Code is amended to
read:

201.  

(a) If an employer discharges an employee, the wages
earned and unpaid at the time of discharge are due and payable
immediately. An employer who lays off a group of employees due
to the termination of seasonal employment in the curing, canning,
or drying of any variety of perishable fruit, fish, or vegetables,
shall be deemed to have made immediate payment when the wages
of those employees are paid within a reasonable time as necessary
for computation and payment thereof, provided, however, that the
reasonable time shall not exceed 72 hours, and further provided
that payment shall be made by mail to any employee who so
requests and designates a mailing address therefor.

(b) Notwithstanding any other provision of law, the state
employer shall be deemed to have made an immediate payment
of wages under this section for any unused or accumulated
vacation, annual leave, holiday leave, or time off to which the
employee is entitled by reason of previous overtime work where
compensating time off was given by the appointing power,
provided that at least five workdays prior to his or her final day of
employment, the employee submits a written election to his or her
appointing power authorizing the state employer to tender payment
for any or all leave to be contributed on a pretax basis to the
employee’s account in a state-sponsored supplemental retirement
plan as described under Section 401(k), 403(b), or 457 of the
Internal Revenue Code, if the plan allows those contributions. The
contribution shall be tendered for payment to the employee’s
401(k), 403(b), or 457 plan account no later than 45 days after the
employee’s discharge from employment. Nothing in this section
is intended to authorize contributions in excess of the annual
deferral limits imposed under federal and state law or the provisions
of the supplemental retirement plan itself.

(c) Notwithstanding any other provision of law, when the state
employer discharges an employee, the employee may, at least five
workdays prior to his or her final day of employment, submit a
written election to his or her appointing power authorizing the
state employer to defer into the next calendar year payment of any
or all of the employee’s unused or accumulated vacation, annual
leave, holiday leave, or time off to which the employee is entitled
by reason of previous overtime work where compensating time
off was given by the appointing power. To qualify for the deferral
of payment under this section, only that portion of leave that
extends past the November pay period for state employees shall
be deferred into the next calendar year. An employee electing to
defer payment into the next calendar year under this section may
do any of the following:

(1) Contribute the entire payment to his or her 401(k), 403(b),
or 457 plan account.

(2) Contribute any portion of the deferred payment to his or her
401(k), 403(b), or 457 plan account and receive cash payment for
the remaining noncontributed unused leave.

(3) Receive a lump-sum payment for all of the deferred unused
leave as described above.

Payments shall be tendered under this section no later than
February 1 in the year following the employee’s last day of
employment. Nothing in this section is intended to authorize
contributions in excess of the annual deferral limits imposed under
federal and state law or the provisions of the supplemental
retirement plan itself.

end delete