BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1235
                                                                  Page  1

          Date of Hearing:   May 28, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 1235 (Hayashi) - As Amended:  May 18, 2009 

          Policy Committee:                              Labor and  
          Employment   Vote:                            N/A

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill authorizes, for registered security officers employed  
          by registered private patrol operators, a collective bargaining  
          agreement to include an exemption from meal period requirements  
          of existing law. The bill also specifies:

          1)That in order to receive this exemption, the agreement provide  
            for the wages, hours of work, and working conditions of  
            employees, include rest periods for the employees, final and  
            binding arbitration of disputes concerning application of its  
            rest period provisions, premium wage rates for all overtime  
            hours worked, and regular hourly pay at least 30% more than  
            the state minimum wage.

          2)That the exemption for these two industries does not affect  
            the nature or scope of the law related to meal periods for  
            employers not specifically covered by this measure.

           FISCAL EFFECT  

          Potential minor decrease in costs to Division of Labor  
          Enforcement (DLSE) within the Department of Industrial Relations  
          (DIR) related to fewer enforcement investigations.
           
           COMMENTS

          1)Background  . Current law prohibits an employer from employing  
            any person for a work period of more than five hours without  
            providing a meal period of at least 30 minutes. If the total  
            work period per day for the employee is no more than six  
            hours, the meal period may be waived by mutual consent of the  








                                                                  AB 1235
                                                                  Page  2

            employee and employer. The meal period is generally unpaid as  
            long as the employee is relieved of all duty, while rest  
            periods are considered as "hours worked" and must be  
            compensated at the employee's regular pay rate.

            Current law authorizes paid on-duty meal periods when the  
            nature of the work prevents an employee from being relieved of  
            all duty, the parties have agreed to the paid on-duty meal  
            period in writing, and the written agreement authorizes the  
            employee to revoke the agreement at any time. If an employer  
            fails to provide a meal period or rest period, the employer  
            must 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.

           2)Purpose  . This bill is supported by the California Association  
            of Licensed Security Agencies, Guards and Associates  
            (CALSAGA), who contend that nature of contract private  
            security work makes it difficult for an employee to leave his  
            or her post unattended, since security officers are dispersed  
            throughout many sites, and it is difficult to designate proper  
            coverage. Service Employees International Union (SEIU) also  
            supports this bill, stating that their members prefer on-duty  
            meals and an eight hour shift to the standard eight hour  
            workday and one-half hour unpaid lunch break.

           3)Opposition  . Various employer groups object to industry  
            carve-outs, and contend that the meal period flexibility  
            should be broadened to include all industries. The California  
            Nurses Association asserts that the exemption weakens meal and  
            rest break provisions, which are important to workers' health  
            and productivity. 

           4)Related legislation  . AB 569 (Emmerson) provides similar  
            exemptions for employees covered by collective bargaining  
            agreements in the construction and transportation industries.


           Analysis Prepared by  :    Brad Williams / APPR. / (916) 319-2081