BILL ANALYSIS
AB 2410
Page 1
Date of Hearing: April 12, 2000
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Darrell Steinberg, Chair
AB 2410 (Machado) - As Introduced: February 24, 2000
SUMMARY : Deletes the exemption of the State of California
(state) from the Labor Code section requiring employers to pay
employees twice during each calendar month and deletes the
exemption of the State from additional labor code provisions
including provisions requiring an employer to make timely
payment of wages owed, prescribing penalties for failure to make
such payments, and establishing other duties of an employer with
respect to payment of wages. Specifically, this bill deletes
the exemption of the state from:
1)The requirement that wages are due and payable twice during
each calendar month, except as specified.
2)The requirement that the employer immediately pay earned and
unpaid wages for discharged employees.
3)The requirement that the employer pay within specified time
limits earned and unpaid wages to employees who have quit
work.
4)The requirement related to the timely payment of wages and
overtime pay.
5)The waiting time penalty, if the employer willfully fails to
pay any wages of an employee who is discharged or who quits.
6)The requirement that the employer post a notice specifying the
pay schedule of the employee.
7)The requirement that the employer, in the event of any strike,
pay any unpaid wages earned by the striking employees on the
next regular payday.
8)The civil penalty for failure, of the employer, to pay the
wages owed to the employee, as provided by specified Labor
Code sections.
9)The requirement that any person, agent, manager,
superintendent or officer who violates any of the
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aforementioned Labor Code sections is guilty of a misdemeanor.
10)Applies to the state the provisions of the following
additional Labor Code sections: 200, 201.5, 201.7, 202, 203.1,
203.5, 204a, 204b, 204c, 204.1, 204.2 204.3, 205, 205.5,
206.5, 208, 217, 218, 218.5 and 219.
EXISTING LAW:
1)Requires private sector employers to immediately pay earned
and unpaid wages for discharged employees.
2)Imposes a penalty if the private sector employer willfully
fails to pay any wages of an employee who is discharged or who
quits.
3)Requires all wages earned by the employee are payable by the
private sector employer twice during each calendar month.
4)Requires the private sector employer to comply with the Labor
Commissioner's ruling with respect to wage disputes.
5)Requires the private sector employer to post a notice
specifying the pay schedule of the employee.
6)Requires the private sector employer, in the event of any
strike, pay any unpaid wages earned by the striking employees
on the next regular payday.
7)Imposes a civil penalty for failure, of the private sector
employer, to pay the wages owed to the employee.
8)Establishes that any person, agent, manager, superintendent or
officer who violates any of the aforementioned provisions is
guilty of a misdemeanor.
9)Excludes from these provisions payment of wages of employees
directly employed by the state, counties or municipalities.
FISCAL EFFECT : Unknown
COMMENTS :
1)Because state workers are paid monthly, late payments result
in severe hardship to employees. The sponsor notes that this
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fact makes it necessary to delete the exemption to the state
regarding the paying of wages twice during each calendar
month. Pay warrants are regularly withheld if an employee
misses any work after the dock cut-off period. State
departments should then issue an advance to the employee;
however, supporters argue that this is not always done in a
timely manner. The sponsor also notes that state employees
are not paid immediately upon termination or resignation.
There have also been occasions when terminated or resigned
employees are not even paid on the following pay period. The
sponsor points out that there seems to be no standard for the
paying of overtime; consequently, these warrants are often
more than one month overdue.
2)Labor Code sections 201.5, 201.7, 203.1, 203.5, 204.1, 205 and
205.5 do not seem applicable to state employees. Therefore,
it is unclear why these sections were included in this bill.
3)AB 649 (Floyd), currently on the Senate inactive file, amends
Labor Code section 220 to require state agency employers to
make payment of overtime wages no later than the payday for
the next regular payroll period.
REGISTERED SUPPORT / OPPOSITION :
Support
American Federation of State County and Municipal Employees
California Correctional Supervisors Association
California Labor Federation, AFL-CIO
California State Employees Association
Opposition
None registered.
Analysis Prepared by : Manuel Valencia / L. & E. /
(916)319-2091