BILL ANALYSIS                                                                                                                                                                                                    




                                                                  AB 1235
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          Date of Hearing:   May 13, 2009

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                              William W. Monning, Chair
                     AB 1235 (Hayashi) - As Amended:  May 4, 2009
           
          SUBJECT  :   Meal periods.

           SUMMARY  :   Establishes specific meal period requirements  
          applicable to licensed security guards, as specified.   
          Specifically,  this bill  :  

          1 Authorizes on-duty meal periods for registered security  
            officers employed by a private patrol operator if either of  
            the following apply: 

             a)   The security officer is covered by a valid collective  
               bargaining agreement that expressly provides for the wages,  
               hours of work, and working conditions of employees and  
               expressly provides for meal periods for those employees,  
               final and binding arbitration of disputes concerning  
               application of its meal period provisions, premium wage  
               rates for all overtime hours worked, and a regular rate of  
               pay of not less than 30 percent more than the state minimum  
               wage

             b)   The security officer and his or her employer have  
               entered into a written on-duty meal period agreement that  
               complies with all of the following:

               i)     The security officer is provided the opportunity to  
                 take a compensated, 30-minute on-duty meal period during  
                 each work period of five or more hours in lieu of an  
                 unpaid, 30-minute off-duty meal period during the same  
                 work period.

               ii)    If the security officer workers 10 or more hours in  
                 one work period, the security officer may take a second,  
                 compensated on-duty meal period under the same conditions  
                 as the first on-duty meal period.

               iii)   The security officer receives full compensation for  
                 on-duty meal periods.

               iv)    The security officer voluntarily entered into the  









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                 written on-duty meal period agreement.

               v)     The written agreement states that the security  
                 officer may revoke the agreement in writing at any time.

          2)Specifies that these provisions do not apply to an armored  
            vehicle guard employed by an armored contract carrier.

          3)Specifies that these provisions do not affect the nature or  
            scope of the law related to meal periods, including the timing  
            of commencement of a meal period, for employees or employers  
            not specifically covered by this bill.



           EXISTING LAW  : 

          1)Prohibits an employer from employing any person for a work  
            period of more than five hours without providing the employee  
            with a meal period of not less than 30 minutes [Labor Code  
            Section 512 (a)].

          2)Provides that if the total work period per day of the employee  
            is no more than six hours, the meal period may be waived by  
            mutual consent of both the employer and employee [Labor Code  
            Section 512 (a)].

          3)Provides that if an employer fails to provide an employee a  
            meal period or rest period, the employer shall pay the  
            employee one additional hour of pay at the employee's regular  
            rate of compensation for each work day that the meal or rest  
            period is not provided (Labor Code Section 226.7).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :  California law currently regulates meal periods of  
          employees via statute and regulation.  The Industrial Welfare  
          Commission (IWC) is the state agency generally empowered to  
          formulate regulations (known as Wage Orders) governing  
          employment.

          The meal period provisions of the IWC's Wage Orders have  
          remained largely unchanged since 1947.  Under those provisions,  
          non-exempt employees are entitled to 30-minute unpaid meal  
          periods depending on the number of hours worked.  In 1999, the  









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          Legislature enacted Labor Code Section 512 to codify the  
          language regarding meal periods that had previously been  
          contained in most of the IWC wage orders<1>.
           
           Labor Code Section 512 provides in relevant part as follows:

               "(a) An employer may not employ an employee for a work  
          period of
               more than five hours per day without providing the employee  
          with a meal
               period of not less than 30 minutes, except that if the  
          total work period per
               day of the employee is no more than six hours, the meal  
          period may be
               waived by mutual consent of both the employer and employee.  
           An employer
               may not employ an employee for a work period of more than  
          10 hours per
               day without providing the employee with a second meal  
          period of not less
               than 30 minutes, except that if the total hours worked is  
          no more than 12
               hours, the second meal period may be waived by mutual  
          consent of the
               employer and the employee only if the first meal period was  
          not waived.

               (b) Notwithstanding subdivision (a), the Industrial Welfare  
          Commission
               may adopt a working condition order permitting a meal  
          period to commence
               after six hour of work if the commission determines that  
          the order is
               consistent with the health and welfare of the affected  
          employees."


          In 2000, the IWC conducted a legislatively mandated review of  
          the remedy available to employees against an employer that  
          failed to provide a meal or rest period mandated by applicable  
          law.  At the time, the only remedy available to an employee was  
          to obtain an injunction against the employer ordering the  

          ---------------------------
          <1> Labor Code Section 512 was enacted by Assembly Bill 60,  
          Chapter # 134, Statutes of 1999, the "Eight-Hour-Day Restoration  
          and Workplace Flexibility Act of 1999." 








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          employer to provide the meal and rest periods.  In an effort to  
          provide employers with an incentive to comply with the meal and  
          rest period provisions, the IWC adopted a proposal which  
          required employers to pay employees one hour's pay for each day  
          on which an employee did not receive a meal or rest period.

          In 2000, the Legislature adopted Labor Code Section 226.7  
          codifying the new remedy:

               "(a) No employer shall require any employee to work during  
          any meal
               or rest period mandated by an applicable order of the  
          Industrial Welfare
               Commission.

               (b) If an employer fails to provide an employee a meal  
          period or rest period
               in accordance with an applicable order of the Industrial  
          Welfare Commission,
               the employer shall pay the employee one additional hour of  
          pay at the
               employee's regular rate of compensation for each work day  
          that the meal or
               rest period is not provided."

           THE MAJOR POINTS OF CONTENTION IN RECENT YEARS
           
          The debate in recent years over California's meal period law has  
          largely focused on the following main issues:

           Obligation to "Provide" Meal Periods
           
          As discussed above, Labor Code Section 512 provides that "an  
          employer may not employ an employee for a work period of more  
          than five hours per day without providing the employee with a  
          meal period of not less than 30 minutes."

          There has been much dispute over the precise meaning of this  
          term.  Representatives of workers and organized labor have  
          generally argued that the use of the term "provide" means that  
          an employer must actually provide the meal period and ensure  
          that employees are able to actually take it.  On the other hand,  
          the business community has generally argued such an  
          interpretation is unreasonable and too restrictive and that  
          therefore the term "provide" means simply that an employer must  









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          make the meal period available to the employee (but not  
          necessarily ensure that the employee does in fact take the meal  
          period).

          As discussed below, the courts have been grappling with this  
          issue as well in recent years, and the issue is currently before  
          the California Supreme Court.

           Time Parameters in Which Meal Periods Must Be Provided
           
          Another controversial issue has involved when an employer must  
          provide meal periods.  As discussed above, Labor Code Section  
          512 and the IWC wage orders specify that employers cannot allow  
          employees to work more than five hours without taking a  
          30-minute meal period.


          Some of the litigation in recent years has focused on whether  
          the meal period must be completed before the end of the fifth  
          hour of work.  Some employers claim that they have been sued  
          over issues such as whether the meal period extended into the  
          sixth hour of work, even if only by a few minutes.

           On-Duty Meal Periods
           
          The IWC Wage Orders provide: "Unless the employee is relieved of  
          all duty during a 30 minute meal period, the meal period shall  
          be considered an 'on-duty' meal period and counted as time  
          worked.  An 'on-duty' meal period shall be permitted only when  
          the nature of the work prevents an employee from being relieved  
          of all duty and when by written agreement between the parties an  
          on-the-job paid meal period is agreed to.  The written agreement  
          shall state that the employee may, in writing, revoke the  
          agreement at any time."

          There has been some dispute about when the "nature of the work"  
          supports the provision of an on-duty (as opposed to an unpaid  
          off-duty) meal period.

          In 2002, the DLSE issued an opinion letter that stated the  
          following:

               "In determining whether the 'nature of the work' prevents  
               an employee from being relieved of all duty, the Division  
               of Labor Standards Enforcement starts with the premise that  









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               the general requirement for an off-duty meal period is  
               remedial in nature, and any exceptions to that general  
               requirement must be narrowly construed, so as to avoid  
               frustrating the remedial purpose of the regulation.  The  
               Division has always followed an enforcement policy that  
               this determination must be made on the basis of a  
               multi-factor objective test.  The factors that should be  
               considered include the type of work, the availability of  
               other employees to provide relief to an employee during a  
               meal period, the potential consequences to the employer if  
               the employee is relieved of all duty, the ability of the  
               employer to anticipate and mitigate these consequences such  
               as by scheduling the work in a manner that would allow the  
               employee to take an off-duty meal break, and whether the  
               work product or process will be destroyed or damaged by  
               relieving the employee of all duty.  The Division will  
               conclude that an off-duty meal period must be provided  
               unless these factors, taken as a whole, decisively point to  
               the conclusion that the nature of the work makes it  
               virtually impossible for the employer to provide the  
               employee with an off-duty meal period.  Finally, the burden  
               rests on the employer for establishing the facts that would  
               justify an on-duty meal period.

          Some in the employer community have argued that this is an  
          overly-restrictive interpretation that makes it impossible for  
          an employer to ever be able to lawfully provide an on-duty meal  
          period.  There have been some efforts in recent years  
          (legislative and otherwise) to expand this interpretation and  
          the circumstances under which an on-duty meal period may be  
          provided.

           Collective Bargaining Agreement Carve-Outs
           
          Unlike California's overtime laws, the laws governing meal  
          periods do not provide a blanket collective bargaining agreement  
          carve-out that allows the parties to an agreement to negotiate  
          the provision of meal periods by contract.

          However, there are a few industry-specific situations in which  
          such authority has been extended to collective bargaining  
          situations.

          For example, Labor Code Section 512(c) provides that the meal  
          period requirements of current law do not apply to employees in  









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          the wholesale baking industry who are covered by a valid  
          collective bargaining agreement that meets certain specified  
          criteria.  Labor Code Section 512(d) provides a similar  
          exception to employees in the motion picture industry or  
          broadcasting industry covered by a valid collective bargaining  
          agreement.

          In addition, in 2003, the IWC amended Wage Order 9 to apply the  
          meal and rest period provisions of that order to commercial  
          drivers employed by governmental entities.  In addition,  
          legislation was enacted to specifically authorize the IWC to  
          provide for a collective bargaining exemption when it extended  
          the meal and rest period requirements to public sector  
          commercial drivers.

          In recent years, other industries have sought legislative  
          authority to allow them to negotiate the terms of their  
          provision of meal periods to their employees via the collective  
          bargaining process.  Most notable among these has been the  
          transportation industry, which has sponsored several such bills  
          in recent years.  However, each of these bills has been vetoed  
          by Governor Schwarzenegger.  The following portion of the veto  
          message for AB 2593 (Keene) from 2006 is representative of the  
          Governor's sentiment:

               "This bill seeks to provide relief for unionized  
               employers and employees in the transportation industry  
               from California's confusing meal period laws and  
               regulations.  This confusion has resulted in costly  
               litigation against employers and even termination of  
               employees that do not comply with the law's burdensome  
               requirements.  While well-intentioned, I cannot  
               support this bill because it singles out a specific  
               group of employers and employees for relief from a  
               problem that plagues almost every industry in this  
               state."
           
          Additional Hour of Pay Under Labor Code Section 226.7
           
          One of the most controversial points of contention over  
          California's meal period law has involved whether the remedy  
          provided in Labor Code Section 226.7 constituted a "penalty" or  
          "wages."  However, as discussed below, this issue largely was  
          resolved in 2007 by the California Supreme Court.
           









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          THE 2004 PROPOSED DLSE REGULATION
           
          On December 10, 2004, the Division of Labor Standards  
          Enforcement (DLSE) of the Department of Industrial Relations  
          (DIR) submitted a proposed emergency regulation to the Office of  
          Administrative Law (OAL) regarding the provision of meal and  
          rest periods in the workplace.  As a proposed emergency  
          regulation, there was a five (5) calendar day public comment  
          period, which ended on December 15, 2004.  OAL had until  
          December 20, 2004 to act on the proposed regulation.

          On December 20, 2004, DLSE withdrew the proposed emergency  
          regulation and resubmitted a revised proposed regulation under  
          the regular rulemaking process on January 4, 2005.

          DLSE proposed to adopt section 13700, Meal and Rest Periods, in  
          Title 8 of the California Code of Regulations.  According to  
          DLSE's notice of proposed rulemaking:

               "DLSE proposes to adopt section 13700 to clarify that the  
          one hour of
               pay an employer must pay an employee for each workday in  
          which a
               meal or rest period is not provided in accordance with the  
          applicable
               Industrial Welfare Commission Order is considered a penalty  
          as well
               as to clarify the time parameters and criteria under which  
          meal periods
               can be provided to employees."

          The proposed meal period regulation contained three distinct  
          provisions:

           Obligation to "Provide" Meal Periods
           
          The first provision of the regulation attempted to define when  
          an employer has met the statutory requirement of "providing" a  
          meal period.  Under the proposed regulation, an employer would  
          have been deemed to have provided a meal period if the employer:  
          (1) makes the meal period available and affords the employee an  
          opportunity to take it; (2) posts the applicable IWC wage order;  
          and (3) maintains accurate time records.

          The first provision also provided that "as a further precaution"  









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          an employer may inform an employee in writing of the  
          circumstances under which he or she is entitled to a meal period  
          and the employee acknowledges in writing that he or she  
          understands those rights.

           Time Parameters in Which Meal Periods Must Be Provided
           
          The second provision of the proposed regulation related to the  
          time parameters in which meal periods must be provided.  Labor  
          Code Section 512 and the IWC wage orders specify that employers  
          cannot allow employees to work more than five hours without  
          taking a 30-minute meal period. 

          The proposed regulation provided that a meal period may begin  
          before the end of the sixth hour of the work period.   
          Furthermore, an employee may request and commence their meal  
          period after the end of the sixth hour of work, so long as they  
          were provided the opportunity to take a meal period before the  
          end of the sixth hour of work.

          The proposed regulation contained four examples to illustrate  
          this provision.

           Additional Hour of Pay Under Labor Code Section 226.7
           
          The final provision of the proposed regulation provided that any  
          amount paid or owed by an employer under Labor Code Section  
          226.7 is a "penalty" and not a "wage."







           FINAL OUTCOME OF THE 2004 PROPOSED REGULATIONS
           
          After questions emerged about the legal authority of DLSE to  
          promulgate the proposed regulation, this committee conducted an  
          oversight hearing on the subject on January 26, 2005.

          Subsequently, the Legislature passed ACR 43 (J. Horton) which,  
          among other things, made a legislative declaration that the DLSE  
          did not have the authority to promulgate the proposed regulation  
          concerning meal and rest periods, and that the proposal was  









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          inconsistent with existing law. 

          On January 13, 2006, DLSE announced that it would not file the  
          proposed regulation with the OAL by the applicable deadline.
           
          THE MURPHY V. KENNETH COLE DECISION
           
          One of the most controversial points of contention over  
          California's meal period law has involved whether the remedy  
          provided in Labor Code Section 226.7 constituted a "penalty" or  
          "wages."

          Following the enactment of Labor Code Section 226.7, employers  
          defending class action lawsuits for such compensation generally  
          raised this issue in two contexts, arguing that such payments  
          constitute "penalties."  First, they argued that, as penalties,  
          employees had no private right of action to recover such  
          compensation.  Second, employers argued that as "penalties," the  
          payments under Labor Code Section 226.7(b) were limited by the  
          one-year statute of limitations set forth in Code of Civil  
          Procedure Section 340(a) rather than the longer statute of  
          limitations provided for wage claims under the Labor Code.

          As discussed above, the proposed 2004 DLSE regulation attempted  
          to specify that such amounts paid or owed by employers were  
          "penalties" and not "wages."

          However, in 2007, the California Supreme Court resolved the  
          issue when it held that the "additional hour of pay" due to an  
          employee is a wage, not a penalty.  Murphy v. Kenneth Cole  
          Productions, Inc., (2007) 40 Cal. 4th 1094.  Specifically, the  
          Court stated: 

               "We hold that section 226.7's plain language, the  
               administrative and legislative history, and the  
               compensatory purpose of the remedy compel the conclusion  
               that the 'additional hour of pay' is a premium wage, not a  
               penalty."
           
          RECENT CALIFORNIA APPELLATE CASES REGARDING THE MEANING OF AN  
          EMPLOYER'S OBLIGATION TO "PROVIDE" MEAL PERIODS
           
          Most recently, much of the case law in this area has focused on  
          the meaning of an employer's obligation to "provide" meal  
          periods under Labor Code Section 512 and the IWC Wage Orders.









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          In Cicairos v. Summit Logistics, Inc. (2005) 133 Cal. App. 4th  
          949, the California Court of Appeal for the First District  
          stated that employers have "an affirmative obligation to ensure  
          that workers are actually relieved of all duty."  Many legal  
          observers have concluded that this means that employers have an  
          affirmative obligation to make employees take their meal periods  
          and that employees cannot refrain or refuse to take their meal  
          periods.  However, others have argued that the language in  
          Cicairos does not go that far.
          For example, in Brinker Restaurant Corporation v. Superior Court  
          of San Diego (Hohnbaum) (2008) 165 Cal. App. 4th 25, the  
          California Court of Appeal for the Fourth District interpreted  
          the applicable law to mean that employers must provide meal  
          periods by making them available, but need not ensure that they  
          are taken.  Employers, however, cannot impede, discourage or  
          dissuade employees from taking meal periods.

          In October 2008, the California Court of Appeal for the Second  
          District reached a similar holding in Brinkley v. Public Storage  
          (2008) 167 Cal. App. 4th 1278.  In that case, the court  
          similarly held that employers only have to make meal periods  
          available, essentially equating the "provide" language in the  
          law with language covering rest periods, which only require  
          employers to "authorize and permit" employee to take them.

          Both the Brinker and the Brinkley courts attempted to  
          distinguish and provide a more narrow reading to the First  
                                                              District Court of Appeal's decision in Cicairos.

          However, on October 22, 2008, the California Supreme Court  
          granted review of the California Court of Appeal decision in  
          Brinker Restaurant Corp. v. Superior Court of San Diego County  
          (Hohnbaum).  Similarly, on January 13, 2009, the California  
          Supreme Court granted review in Brinkley v. Public Storage.  The  
          Brinker and Brinkley decisions are now companion cases under  
          review by the California Supreme Court.

          The California Supreme Court's grant of review supersedes the  
          Brinker and Brinkley decisions, and they may not be cited or  
          relied on by a court or a party in any other action.   
          (California Rules of Court 8.1105(e) and 8.1115(a)).  In its  
          review of these cases, the California Supreme Court is expected  
          to confirm whether the law imposes upon employers an affirmative  
          duty to ensure that employees actually take meal periods or  
          rather, that the employer must merely make that meal period  









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          available to the employee and afford the employee the  
          opportunity to take the meal period.

           MOST RECENT EFFORT AT COMPROMISE: AB 1711 (LEVINE) OF 2007-08
          
           Last year, the California Labor Federation, AFL-CIO sponsored  
          legislation that sought to address several of the more  
          controversial issues involving meal periods in an effort to  
          provide more employer flexibility.  Specifically, Assembly Bill  
          1711 (Levine) sought to make a number of changes to the current  
          law surrounding meal periods.

          First, the bill would have specified that meal periods may not  
          commence before the third hour of work and must be completed  
          before the sixth hour of work.  In essence, this would have  
          provided employers a three-hour window during which to provide  
          the meal period.

          Second, the bill would have permitted on-duty meal periods when  
          mutually agreed to in writing between employer and the employee,  
          and when the nature of the work prevents the employee from being  
          relieved of work due to one of the following conditions:

               1)     The employee is the only employee at the worksite  
                 and the essential functions of the job cannot be  
                 performed unless the employee remains on-duty.

               2)     State and federal law impose a requirement that the  
                 employee not be relieved of all duties.

          Third, the bill would have provided an exemption for all  
          employees in all industries covered by a valid collective  
          bargaining agreement that met specified criteria.

          However, the bill was opposed by some members of the employer  
          community, largely because they expressed concern that it did  
          not go far enough to address the issues of all employers and did  
          not deal with the issues surrounding the nature of the meaning  
          of an employer's obligation to "provide" meal periods.  The  
          sponsor and the author decided not to move the bill.
           
          RECENT BUDGET DISCUSSIONS
          
           Over the last few years, Governor Schwarzenegger and Members of  
          the Senate and Assembly Republican Caucuses have proposed  









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          amendments to California's meal period laws as part of the  
          larger budget discussion.  Most recently, those proposals have  
          been included in the "economic stimulus" proposals set forth by  
          both the Governor and the Republican Caucuses.

          For example, one of the most recent proposals set forth by the  
          Governor stated that an employer must "make available to the  
          employee an opportunity to take" a meal period.  In addition,  
          the Governor's proposal would have authorized the Department of  
          Industrial Relations (DIR) to adopt regulations defining the  
          circumstances in which the nature of the work prevents an  
          employee from being relieved of all duty (and therefore subject  
          to an on-duty meal period).
           
          PRIOR AND RELATED LEGISLATION REGARDING SECURITY OFFICERS  

          AB 529 (Cedillo) from last session established various  
          exemptions from the meal period requirements of current law.   
          That measure was amended on the Assembly floor to contain  
          specific language to allow for on-duty meal periods for licensed  
          security officers in certain circumstances.

          However, on August 25, 2008, the Executive Council of the  
          California Labor Federation, AFL-CIO voted to oppose SB 529.  A  
          floor alert issued by the California Labor Federation stated the  
          following:

               "SB 529 originally provided meal period flexibility for  
               parties to a collective bargaining agreement. It was  
               amended on August 22, 2008 to apply to all registered  
               security officers, union and non-union, making them  
               eligible for on-duty meal periods. It is this amendment  
               that the California Labor Federation must oppose.

               Non-union workers are routinely pressured into signing  
               agreements to waive their rights on the job. This bill  
               would put every security officer in a position to be  
               pressured to sign away their right to an off-duty meal  
               period.

               The right to a meal period, a time to walk away from one's  
               desk or post, to check in on one's family, or grab a bite  
               to eat, is a fundamental right in California. It is  
               essential to worker health and safety, and to maintaining  
               basic working conditions for all California workers."









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          SB 529 was subsequently placed on the Assembly inactive file at  
          the request of the author.

          SB 665 (Cedillo) from this year contains language related to  
          meal periods for licensed security officers identical to the  
          language that was contained in SB 529.  SB 665 is currently  
          pending before the Senate Committee on Labor and Industrial  
          Relations.  The bill was scheduled to be heard on April 29,  
          2009, but the author decided not to move the bill.
           
          ARGUMENTS IN SUPPORT  :

          This bill is supported by the California Association of Licensed  
          Security Agencies, Guards and Associates (CALSAGA), who states  
          that it is the only trade association in California representing  
          the private security industry with nearly 300 member companies  
          employing 60,000 security officers in the state.

          CALSAGA states that the industry continues to be susceptible to  
          class action lawsuits over alleged meal break violations.  They  
          argue that these lawsuits don't solve anything and hurt both  
          employees and employers alike.

          They contend that, due to the nature of contract private  
          security work, the requirement for an off-duty meal period is  
          not practical from a public safety, homeland security or  
          administrative perspective.  From a public safety perspective,  
          allowing or even requiring a security officer to leave his or  
          her post unattended is essentially an advertisement to criminals  
          that a site is unprotected.  Administratively, because security  
          officers are dispersed throughout many sites, it makes it  
          virtually impossible to designate employees from a company to  
          drive from site to site to relieve officers of duty to ensure  
          mandatory meal breaks are taken.  Furthermore, CALSAGA contends  
          that nearly all employees prefer to perform eight hours of work  
          for eight hours of pay with an on-duty meal period, as opposed  
          to having to work for eight-and-a-half hours to get eight hours  
          of pay.

          CALSAGA concludes that security officers are increasingly being  
          called upon to protect some of California's most critical  
          infrastructure sites, from energy facilities to oil refineries.   
          In many cases, their mere presence acts as a crime deterrent.










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          The Service Employees International Union (SEIU) supports this  
          bill.  One SEIU representative, writing in support of the bill,  
          states the following:

               "Security officers we represent and security officers we  
               are organizing want this change in the law. More than a  
               break in the middle of the day, they want the opportunity  
               to go home early. They do not need the mid-day rest or a  
               relief from duty. They and their employers believe they can  
               remain attentive to their work while eating. They want to  
               go home early, to be with their families, to get more rest  
               off the job, especially if private security is, as is often  
               the case, their second job.

               The current state of the law does not allow them this  
               opportunity. Since statutes were enacted at the beginning  
               of this decade (with California Labor Federation support)  
               creating a statutory right to a mid-day meal period,  
               collective bargaining agreements and private arrangements  
               to work through the lunch hour have been illegal. The  
               courts have made the mid-day meal break all but impossible  
               to overcome. Workers have won millions of dollars in back  
               wages for lost meal periods, even when their collective  
               bargaining agreements said otherwise. As recently as last  
               year a number of unions, under the sponsorship of the  
               California Labor Federation, were engaged with their  
               employers in reinstating the right to collectively bargain  
               meal breaks.

               These efforts were unsuccessful because the state  
               administration and many industry groups wanted a "global"  
               solution that extended beyond collective bargaining. While  
               many in organized labor wanted the law to return to its  
               collectively bargainable status, none were willing to  
               accept a global compromise on workers not represented by  
               unions, and the talks fell apart. In fact, there has never  
               been a 'global' solution to the meal break issue, and there  
               never can be. Meal and rest, as collective bargaining  
               agreements and IWC wage orders show, have legitimate  
               peculiarities in every industry and have often been the  
               subject of labor- management agreement.

               In the course of those discussions last year, it was clear  
               that there were some unions and their employers who could  
               reach agreements on this issue, based on their history and  









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               the peculiarities of their industry. SEIU discovered it had  
               a common interest with the contract security industry on  
               behalf of security officers, both represented and  
               unrepresented. 

               The security industry wanted to return to the past practice  
               of paying workers for an eight hour shift and letting them  
               eat on the job. The industry had lost a lot of money in  
               lawsuits and wanted to avoid future liability.  SEIU wanted  
               as much cooperation as it could legitimately obtain from  
               the industry, because the National Labor Relations Act  
               permits only card-check union recognition where the same  
               union represents other workers on the job site. SEIU's  
               success in janitor organizing in urban areas means we are  
               already everywhere private contract security would be. 

               We cannot do the organizing except by card check--and we  
               cannot be rapidly successful to gain the industry density  
               to be powerful in negotiating with employers without  
               employer neutrality to card check. I am also convinced, by  
               talking to hundreds of non-union workers that they do not  
               need to be "coerced" into eating on the job and going home  
               early. This is was what they want, even more than their  
               employers.  Only after this experience, hearing from the  
               workers, did SEIU conclude that extending the statutory  
               exemption to unrepresented workers would not be harmful to  
               them, and in fact, would aid SEIU in enabling more of these  
               security officers to obtain union representation sooner."

           ARGUMENTS IN OPPOSITION  :

          Opponents state that under existing law, an employee who works  
          more than five hours per day is entitled to a thirty minute off  
          duty lunch break.  If the employee works more than ten hours per  
          day, he or she is entitled to a second thirty minute off duty  
          lunch break.  Functionally, "off duty" means free from the  
          employer's control.  They argue that workers' rights to off duty  
          lunch breaks serve not just to ensure that they have a chance to  
          eat and meet their personal needs, but also to ensure that they  
          are sufficiently rested, both physically and mentally, for  
          health and safety reasons.

          Existing law provides for an on duty rather than an off duty  
          meal break only in those situations "where the nature of the  
          work prevents the worker from being relieved of all duty."  This  









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          has been construed very narrowly because of the important health  
          and safety concerns cited above.  It applies to emergency  
          situations and is not construed to cover instances of economic  
          necessity.

          Opponents contend that this bill would virtually eliminate these  
          rights for security guards by allowing for an on-duty meal break  
          simply because the worker happens to be in that job  
          classification.  It doesn't matter whether the employee could be  
          relieved of duty - it just matters that he or she is a security  
          guard.

          Opponents contend that this bill will mean that those workers  
          without the protection of a union will be intimidated to give up  
          this important right.  They argue that the proponents cannot  
          argue that this type of intimidation does not occur in the  
          workplace.

          In addition, opponents argue that the fact that there have been  
          numerous lawsuits in this industry for missed meal periods  
          indicates that security guards in fact do want off-duty meal  
          periods as required under current law.

          Finally, opponents state the following:

               "This bill is the result of a sweetheart deal between one  
               union and one security guard company, negotiated without  
               consultation with any of the other unions which represent a  
               large number of workers in that industry.  We do not  
               believe that it is appropriate for certain unions to  
               arrogate unto themselves the right to speak for all of us  
               and to change the law in ways that harm workers or lower  
               critical protective standards for their own purposes." 
          
           In addition, the California Labor Federation, AFL-CIO writes the  
          following in opposition to this measure:

               "In California, all workers are entitled to a thirty-minute  
               meal period.  During that lunch break, workers must be  
               relieved of all duty.  For example, a receptionist cannot  
               be required to sit at her desk and answer phones while  
               eating lunch. Under most circumstances, workers must be  
               permitted to leave work premises during the meal period. 

               There are many important policy reasons to relieve workers  









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               from duty during the meal break. Breaks have health and  
               safety benefits for all workers as they reduce accidents  
               caused by an employee being hungry, distracted, or  
               fatigued.  Breaks mitigate repetitive stress injuries.  
               Regular breaks have taken on a greater importance as many  
               workers routinely do overtime work, resulting in shifts of  
               up to twelve hours a day. 

               Beyond health and safety reasons, the meal period was  
               established as a basic labor standard in 1947, to ensure  
               that workers had a brief time during the day when they were  
               free from employer control and could rest, eat, and recover  
               for the rest of the work day.  Today, many workers use  
               their lunch break to attend to family needs, pick up their  
               kids, pay bills, or do personal errands. Whatever they  
               choose to do, this time is their own. 

               On-duty meal periods are permitted under current law but  
               only when an off-duty meal break is virtually impossible  
               due to the nature of the work.  Under existing law, workers  
               cannot be persuaded by an employer to agree to on-duty  
               breaks simply for the employer's convenience. 

               [This bill] would change the law by permitting all licensed  
               security guards to do on-duty breaks. While they would  
               still have to agree to on-duty lunches, we know that in  
               practice such agreements typically consist of a signature  
               in an employee handbook on the first day of hire. That  
               hardly constitutes a truly voluntary waiver of one's right  
               to the off-duty lunch enjoyed by all other workers. We also  
               know that workers routinely face employer pressure and  
               intimidation to waive core labor rights and that  
               unrepresented, at-will workers have little ability to  
               withstand employer coercion. 

               We have no doubt that some workers would be willing to  
               agree to do on-duty meal breaks. But we also know there are  
               workers who depend on the availability of an off-duty break  
               to recuperate from hard work, rest their feet, or run home  
               to check on their kids. Security guards work in diverse  
               locations, including banks, hospitals, and parking lots.  
               They must be alert and on guard for their own safety and  
               for the safety of the public they protect. They deserve the  
               same break all others workers get to relax and clear their  
               heads in the midst of a stressful and sometimes dangerous  









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               job. 

               We support collective bargaining language that allows union  
               members to negotiate terms that best meet the needs of the  
               membership because any such agreement will have to be  
               ratified by the workers themselves. This bill, however,  
               also applies to non-union workers who will not have the  
               opportunity to vote on whether they want to give up the  
               right to an off-duty lunch."  
           
           Finally, a coalition of employer groups opposes this measure,  
          arguing that currently all industries, business, and occupations  
          are subject to a restrictive statute which has resulted in  
          costly litigation.  They believe that a comprehensive solution  
          must be reached in order to provide all businesses regardless of  
          size, type or union status with appropriate clarity and guidance  
          for the compliance and enforcement of meal period laws. 
           
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          AlliedBarton Security Services
          Boyd & Associates
          California Association of Licensed Security Agencies, Guards and  
          Associates
          California Peace Officers' Association
          California Police Chiefs Association
          Contact Security, Inc.
          Custom Protective Services
          D.N. Security Services, Inc.
          Executive Assurance
          Garda Private Security, Inc.
          Genesis Background Screening Services
          Kern Security Patrol
          Securitas Security Services USA, Inc.
          Security Officers United in Los Angeles, SEIU Local 2006
          Service Employees International Union Local 1877
          Service Employees International Union Local 2007
          Service Employees International Union Local 24/7
          Service Employees International Union, California State Council  
          (sponsor)
          Western Area Security Services

           Opposition 









                                                                 AB 1235
                                                                  Page T
           
          Associated Builders and Contractors of California
          California Cleaners Association
          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Construction & Industrial Materials Association 
          California Employment Law Council
          California Grocers Association
          California Hospital Association
          California Independent Oil Marketers Association
          California Labor Federation, AFL-CIO
          California Lodging Industry Association
          California Manufacturers & Technology Association
          California Nurses Association/National Nurses Organizing  
          Committee
          California Retailers Association 
          California Teamsters Public Affairs Council
          Consumer Attorneys of California
          Engineers and Scientists of California
          International Longshore and Warehouse Union
          Lumber Association of California and Nevada
          National Federation of Independent Business
          UNITE HERE!
          United Food & Commercial Workers, Western States Council
          Western Growers
           

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