BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2743
                                                                  Page  1

          Date of Hearing:   April 2, 2014

                     ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
                               Roger Hern�ndez, Chair
            AB 2743 (Labor and Employment) - As Introduced:  February 27,  
                                        2014
           
          SUBJECT  :   Employment: wages.

           SUMMARY  :   Makes a clarifying change to add a statutory  
          cross-reference to the provision of existing law related to  
          "waiting time" penalties.  

           FISCAL EFFECT  :   Unknown

           COMMENTS  :  When an employee is discharged, the wages earned and  
          unpaid at the time of discharge are due and payable immediately.  
           When an employee quits, their final wages are generally due not  
          less than 72 hours later, unless they had given 72 hours  
          previous notice of their intention to quit.

          If employer willfully fails to pay any wages of an employee who  
          is discharged or who quits, the wages of the employee continue  
          as a penalty for up to 30 days.  (Labor Code Section 203).   
          These wages are often referred to as "waiting time" penalties  
          and are generally designed to ensure the prompt payment of  
          earned wages.

          As an exception to the time for final payment of wages discussed  
          above, certain industries have special time periods for the  
          final payment of wages due to the unique nature of their  
          industries.  For example, payment of wages for employees laid  
          off or discharged from production of motion pictures may be made  
          by the next regular payday.  (Labor Code Section 201.5).   
          Existing law also has special provisions related to temporary  
          service employees, which generally requires weekly pay.  (Labor  
          Code Section 201.3).

          Labor Code Section 203 specifically cross-references these  
          special Labor Code provisions to provide that the "waiting time"  
          penalties are still applicable once the special time for payment  
          of wages has lapsed.

          However, Labor Code Section 203 fails to cross-reference one  
          special rule for final payment of wages - those governing live  








                                                                  AB 2743
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          theatrical and concert events.  Current law allows employees at  
          venues that host live theatrical and concert events and their  
          employers to enter into a collective bargaining agreement to  
          establish a time limit for payment of wages after an employee is  
          discharged or laid off.  (Labor Code Section 201.9).

          This appears to be an oversight, and this bill will amend the  
          law to add to Labor Code Section 203 the appropriate  
          cross-reference to Labor Code Section 201.9.







           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.

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