BILL NUMBER: AB 2363 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 15, 2016
INTRODUCED BY Assembly Member Low
FEBRUARY 18, 2016
An act to amend Section 201 of the Labor Code, relating
to employment. relating to state employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2363, as amended, Low. Payment of wages.
State employment: State Bargaining Unit 16: memorandum of
understanding.
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.
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.
Under existing law, an employer who discharges or lays off
employees must pay wages earned but unpaid within specified time
limits.
This bill would make technical, nonsubstantive changes to that
provision.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. 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.
SEC. 2. 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.
SEC. 3. 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.
SEC. 4. 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.
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.