BILL ANALYSIS Ó
AB 2757
Page 1
ASSEMBLY THIRD READING
AB
2757 (Gonzalez, et al.)
As Amended June 2, 2016
Majority vote
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|Committee |Votes|Ayes |Noes |
| | | | |
| | | | |
| | | | |
|----------------+-----+----------------------+---------------------|
|Labor |5-2 |Roger Hernández, Chu, |Patterson, Linder |
| | |McCarty, O'Donnell, | |
| | |Thurmond | |
| | | | |
|----------------+-----+----------------------+---------------------|
|Appropriations |14-6 |Gonzalez, Bloom, |Bigelow, Chang, |
| | |Bonilla, Bonta, |Gallagher, Jones, |
| | |Calderon, Daly, |Obernolte, Wagner |
| | |Eggman, Eduardo | |
| | |Garcia, | |
| | | | |
| | | | |
| | |Roger Hernández, | |
| | |Holden, Quirk, | |
| | |Santiago, Weber, Wood | |
| | | | |
| | | | |
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AB 2757
Page 2
SUMMARY: Enacts the Phase-In Overtime for Agricultural Workers
Act of 2016, as specified. Specifically, this bill:
1)Provides that, beginning July 1, 2019, any person employed in
an agricultural occupation shall not be employed more than
nine and one-half hours in any one workday or work in excess
of 55 hours in any one workweek, unless the employee receives
one and one-half times that employee's regular rate of pay for
all hours worked over nine and one-half hours in any workday
or over 55 hours in any workweek.
2)Provides that, beginning January 1, 2020, any person employed
in an agricultural occupation shall not be employed more than
nine hours in any one workday or work in excess of 50 hours in
any one workweek, unless the employee receives one and
one-half times that employee's regular rate of pay for all
hours worked over nine hours in any workday or over 50 hours
in any workweek.
3)Provides that, beginning January 1, 2021, any person employed
in an agricultural occupation shall not be employed more than
eight and one-half hours in any one workday or work in excess
of 45 hours in any one workweek, unless the employee receives
one and one-half times that employee's regular rate of pay for
all hours worked over eight and one-half hours in any workday
or over 45 hours in any workweek.
4)Provides that, beginning January 1, 2022, any person employed
in an agricultural occupation shall not be employed more than
eight hours in any one workday or work in excess of 40 hours
in any one workweek, unless the employee receives one and
one-half times that employee's regular rate of pay for all
hours worked over eight hours in any workday or over 40 hours
in any workweek.
AB 2757
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5)Provides that the term "employed in an agricultural
occupation" has the same meaning as in a specified Wage Order
of the Industrial Welfare Commission.
6)Provides that, beginning January 1, 2022, any work performed
by a person employed in an agricultural occupation in excess
of 12 hours in one day shall be compensated at the rate of no
less than twice the employee's regular rate of pay.
7)Provides that all other provisions of existing law regarding
compensation for overtime work shall apply to workers in an
agricultural occupation beginning January 1, 2017.
8)Beginning in 2018, authorizes the Governor to temporarily
suspend the scheduled phase-in of overtime requirements set
forth above if the Governor suspends scheduled minimum wage
increases for specified "economic conditions" under provisions
of law enacted this year pursuant to Senate Bill 3 (Leno),
Chapter 4, Statutes of 2016. This authority shall end upon
the final phase-in of overtime provisions or January 1, 2022,
whichever comes first.
9)Requires the Department of Industrial Relations to update
Industrial Welfare Commission Wage Order 14 to be consistent
with this bill, except that provisions of existing law
applicable to persons employed in agriculture providing for
double pay for all hours worked over eight in the seventh day
of work shall continue to apply.
10)Makes related legislative findings and declarations.
FISCAL EFFECT: According to the Assembly Appropriations
AB 2757
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Committee, this bill would result in administrative costs in the
range of $326,000 to $586,000, assuming a 10-20% increase in
wage claims annually during the four year implementation phase.
Once the bill is fully implemented, costs are likely to range
between $20,000 to $30,000 annually.
COMMENTS: This bill is sponsored by the United Farm Workers
(UFW), who argues that farm workers engage in back-breaking work
every day. Few occupations in today's America are as physically
demanding and exhausting as farm work. Yet no job in America
requiring such demand on the human body pays less for a long
day's work than what this bill is asking for farm workers.
UFW states that is has been 77 years since farm workers were
excluded from the wage protections and maximum hour standards
through the enactment of the federal Fair Labor Standards Act.
Excluding farm workers is part of our country's shameful legacy
that initially targeted African-Americans who were farm workers
in the 1930s. They argue that excluding farm workers from
overtime was wrong in 1938, and is wrong today.
A coalition of agricultural employers and others opposes this
bill, arguing that, because farmers, their employees and their
operations are critically affected by the uncontrollable whims
of nature and the seasonality of agricultural production,
agriculture needs greater flexibility in scheduling work than do
other industries. Opponents note that California is one of only
a few states that require premium pay for overtime worked by
farm workers. California's regulation is one of the most
generous in its coverage and requires agricultural workers
receive overtime pay for hours worked over 10 in a workday.
Opponents also believe this bill will backfire, hurting family
farmers and cutting agricultural workers' paychecks. They
contend that farmers will likely avoid the additional costs
AB 2757
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imposed by this bill by limiting worker hours and hiring more
farm workers to make up the difference whenever possible.
Analysis Prepared by:
Ben Ebbink / L. & E. / (916) 319-2091 FN:
0003401