Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2063

Introduced by Assembly Member Chávez

February 20, 2014

An act to amend begin delete Section 511 end delete begin insert Sections 2054, 2055, 2056, 2057, and 2061 end insert of the Labor Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 2063, as amended, Chávez. Employment: begin delete wages and hours: alternative workweek schedules. end delete begin insert car washes: online registration. end insert

begin insert

Existing law regulates the employment practices of car washes, including providing specific recordkeeping requirements that employers of car washers must implement with regard to car washer wages, hours, and working conditions, under the enforcement authority of the Division of Labor Standards and Enforcement. Existing law also requires employers of car washers to post a surety bond, to register with the Labor Commissioner, and pay a specified registration fee as well as an annual fee, or be subject to a specified civil fine.

end insert begin insert

This bill would authorize employers to submit their application for registration, fees, and supporting documentation online and would require the Labor Commissioner to develop and provide a form and procedure for online registration.

end insert begin delete

Existing law, with certain exceptions, establishes 8 hours as a day’s work and a 40-hour workweek, and requires payment of prescribed overtime compensation for additional hours worked. Existing law authorizes the adoption by an affirmative vote of at least 2⁄3 of affected employees in a work unit of alternative workweek schedules providing for workdays no longer than 10 hours within a 40-hour workweek without the payment to those employees of overtime wages.

end delete begin delete

This bill would make nonsubstantive changes to those provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 2054 of the end insert begin insert Labor Code end insert begin insert is amended to
read: end insert

2054.  

begin insert (a) end insert begin insert   end insert Every employer shall register with the commissioner
annually.

begin insert

(b) The application may be made by mail or online.

end insert begin insert

(c) The commissioner shall develop and provide a registration
form that may be completed online and provide for the payment
of registration fees electronically on the Internet Web site of the
Department of Industrial Relations.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 2055 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

2055.  

The commissioner may not permit any employer to
register, nor may the commissioner permit any employer to renew
registration until all of the following conditions are satisfied:

(a) The employer has applied for registration to the
commissioner by presenting proof of compliance with the local
government’s business licensing or regional regulatory
requirements.

(b) The employer has obtained a surety bond issued by a surety
company admitted to do business in this state. The principal sum
of the bond shall be not less than one hundred fifty thousand dollars
($150,000). The employer shall file a copy of the bond with the
commissioner. begin insert A copy of the bond required by this section may be
filed electronically when the registration is submitted online
pursuant to Section 2054. end insert

(1) The bond required by this section shall be in favor of, and
payable to the people of the State of California and shall be for
the benefit of any employee damaged by his or her employer’s
failure to pay wages, interest on wages, or fringe benefits, or
damaged by violation of Section 351 or 353.

(2) Thirty days prior to the cancellation or termination of any
surety bond required by this section, the surety shall send written
notice to both the employer and the commissioner, identifying the
bond and the date of the cancellation or termination.

(3) An employer may not conduct any business until the
employer obtains a new surety bond and files a copy of it with the
commissioner.

(4) This subdivision shall not apply to an employer covered by
a valid collective bargaining agreement, if the agreement expressly
provides for all of the following:

(A) Wages.

(B) Hours of work.

(C) Working conditions.

(D) An expeditious process to resolve disputes concerning
nonpayment of wages.

(c) The employer has documented that a current workers’
compensation insurance policy is in effect for the employees. begin insert A
copy of the insurance policy may be filed electronically when the
registration is submitted online pursuant to Section 2054. end insert

(d) The employer has paid the fees established pursuant to
Section 2059. begin insert Fees may be paid electronically when the
registration is submitted online pursuant to Section 2054. end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 2056 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

2056.  

begin insert (a) end insert begin insert   end insert When a certificate of registration is originally issued
or renewed under this chapter, the commissioner shall provide
related and supplemental information to the registrant regarding
business administration and applicable labor laws.

begin insert

(b) If the employer submits the registration online, the
commissioner may provide the information in subdivision (a) to
the employer electronically.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 2057 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

2057.  

Proof of registration shall be by an official Division of
Labor Standards Enforcement registration form. begin insert The proof of
registration shall also be available in a form that may be printed
from the Internet Web site of the Department of Industrial
Relations. end insert Each employer shall post the registration form where
it may be read by the employees during the workday.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 2061 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

2061.  

The commissioner may not approve the registration of
any employer until all of the following conditions are satisfied:

(a) The employer has executed a written begin insert or online end insert application,
in a form prescribed by the commissioner, subscribed, and sworn
by the employer containing the following:

(1) The name of the business entity and, if applicable, its
fictitious or “doing business as” name.

(2) The form of the business entity and, if a corporation, all of
the following:

(A) The date of incorporation.

(B) The state in which incorporated.

(C) If a foreign corporation, the date the articles of incorporation
were filed with the California Secretary of State.

(D) Whether the corporation is in good standing with the
Secretary of State.

(3) The federal employer identification number (FEIN) and the
state employer identification number (SEIN) of the business.

(4) The business’ address and telephone number and, if
applicable, the addresses and telephone numbers of any branch
locations.

(5) Whether the application is for a new or renewal registration
and, if the application is for a renewal, the prior registration
number.

(6) The names, residential addresses, telephone numbers, and
Social Security numbers of the following persons:

(A) All corporate officers, if the business entity is a corporation.

(B) All persons exercising management responsibility in the
applicant’s office, regardless of form of business entity.

(C) All persons, except bona fide employees on regular salaries,
who have a financial interest of 10 percent or more in the business,
regardless of the form of business entity, and the actual percent
owned by each of those persons.

(7) The policy number, effective date, expiration date, and name
and address of the carrier of the applicant business’ current
workers’ compensation coverage.

(8) Whether any persons named in response to subparagraphs
(A), (B), or (C) of subparagraph (6) of this section presently:

(A) Owe any unpaid wages.

(B) Have unpaid judgments outstanding.

(C) Have any liens or suits pending in court against himself or
herself.

(D) Owe payroll taxes, or personal, partnership, or corporate
income taxes, Social Security taxes, or disability insurance.

An applicant who answers affirmatively to any item described
in paragraph (8) shall provide, as part of the application, additional
information on the unpaid amounts, including the name and address
of the party owed, the amount owed, and any existing payment
arrangements.

(9) Whether any persons named in response to subparagraphs
(A), (B), or (C) of paragraph (6) of this section have ever been
cited or assessed any penalty for violating any provision of the
Labor Code.

An applicant who answers affirmatively to any item described
in paragraph (9) shall provide additional information, as part of
the application, on the date, nature of citation, amount of penalties
assessed for each citation, and the disposition of the citation, if
any. The application shall describe any appeal filed. If the citation
was not appealed, or if it was upheld on appeal, the applicant shall
state whether the penalty assessment was paid.

(b) The employer has paid a registration fee to the commissioner
pursuant to subdivision (d) of Section 2055.

begin delete

SECTION 1.  

Section 511 of the Labor Code is amended to
read:

511.  

(a) Upon the proposal of an employer, the employees of
that employer may adopt a regularly scheduled alternative
workweek that authorizes work by the affected employees for no
longer than 10 hours per day within a 40-hour workweek without
the payment to the affected employees of an overtime rate of
compensation pursuant to this section. A proposal to adopt an
alternative workweek schedule shall be deemed adopted only if it
receives approval in a secret ballot election by at least two-thirds
of affected employees in a readily identifiable work unit. The
regularly scheduled alternative workweek proposed by an employer
for adoption by employees may be a single work schedule that
would become the standard schedule for workers in the work unit,
or a menu of work schedule options, from which each employee
in the unit would be entitled to choose. Notwithstanding
subdivision (c) of Section 500, the menu of work schedule options
may include a regular schedule of eight-hour days that are
compensated in accordance with subdivision (a) of Section 510.
Employees who adopt a menu of work schedule options may, with
employer consent, move from one schedule option to another on
a weekly basis.

(b) An affected employee working longer than eight hours but
not more than 12 hours in a day pursuant to an alternative
workweek schedule adopted pursuant to this section shall be paid
an overtime rate of compensation of no less than one and one-half
times the regular rate of pay of the employee for any work in excess
of the regularly scheduled hours established by the alternative
workweek agreement and for any work in excess of 40 hours per
week. An overtime rate of compensation of no less than double
the regular rate of pay of the employee shall be paid for any work
in excess of 12 hours per day and for any work in excess of eight
hours on those days worked beyond the regularly scheduled
workdays established by the alternative workweek agreement.
Nothing in this section requires an employer to combine more than
one rate of overtime compensation in order to calculate the amount
to be paid to an employee for any hour of overtime work.

(c) An employer shall not reduce an employee’s regular rate of
hourly pay as a result of the adoption, repeal, or nullification of
an alternative workweek schedule.

(d) An employer shall make a reasonable effort to find a work
schedule not to exceed eight hours in a workday, in order to
accommodate any affected employee who was eligible to vote in
an election authorized by this section and who is unable to work
the alternative schedule hours established as the result of that
election. An employer shall be permitted to provide a work
schedule not to exceed eight hours in a workday to accommodate
any employee who was hired after the date of the election and who
is unable to work the alternative schedule established as the result
of that election. An employer shall explore any available reasonable
alternative means of accommodating the religious belief or
observance of an affected employee that conflicts with an adopted
alternative workweek schedule, in the manner provided by
subdivision (j) of Section 12940 of the Government Code.

(e) The results of any election conducted pursuant to this section
shall be reported by an employer to the Division of Labor Standards
Enforcement within 30 days after the results are final.

(f) Any type of alternative workweek schedule that is authorized
by this code and that was in effect on January 1, 2000, may be
repealed by the affected employees pursuant to this section. Any
alternative workweek schedule that was adopted pursuant to Wage
Order Number 1, 4, 5, 7, or 9 of the Industrial Welfare Commission
is null and void, except for an alternative workweek providing for
a regular schedule of no more than 10 hours’ work in a workday
that was adopted by a two-thirds vote of affected employees in a
secret ballot election pursuant to wage orders of the Industrial
Welfare Commission in effect prior to 1998. This subdivision does
not apply to exemptions authorized pursuant to Section 515.

(g) Notwithstanding subdivision (f), an alternative workweek
schedule in the health care industry adopted by a two-thirds vote
of affected employees in a secret ballot election pursuant to Wage
Order Numbers 4 and 5 in effect prior to 1998 that provided for
workdays exceeding 10 hours but not exceeding 12 hours in a day
without the payment of overtime compensation shall be valid until
July 1, 2000. An employer in the health care industry shall make
a reasonable effort to accommodate any employee in the health
care industry who is unable to work the alternative schedule
established as the result of a valid election held in accordance with
provisions of Wage Order Number 4 or 5 that were in effect prior
to 1998.

(h) Notwithstanding subdivision (f), if an employee is
voluntarily working an alternative workweek schedule providing
for a regular work schedule of not more than 10 hours’ work in a
workday as of July 1, 1999, an employee may continue to work
that alternative workweek schedule without the entitlement of the
payment of daily overtime compensation for the hours provided
in that schedule if the employer approves a written request of the
employee to work that schedule.

(i) For purposes of this section, “work unit” includes a division,
a department, a job classification, a shift, a separate physical
location, or a recognized subdivision thereof. A work unit may
consist of an individual employee as long as the criteria for an
identifiable work unit in this section are met.

end delete