BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Senator Ben Hueso, Chair
Date of Hearing: June 11, 2013 2013-2014 Regular
Session
Consultant: Gideon L. Baum Fiscal:Yes
Urgency: No
Bill No: AB 2743
Author: Assembly Committee on Labor and Employment
As Introduced/Amended: February 27, 2014
SUBJECT
Employment: wages.
KEY ISSUE
Should the Legislature permit unionized, regular short-term
employees who work at a theatrical or concert venue from being
able to pursue liquidated damages due to non-payment of wages
after discharge?
ANALYSIS
Existing law provides for a statute of limitations for the
collection of wages of three years and a statute of limitations
for the collection of penalties of one year, unless the statute
imposes a different statute of limitations. (Code of Civil
Procedure ��338 & 340)
Existing law provides that, if an employer discharges an
employee, the wages earned and unpaid at the time of discharge
are due and payable immediately. (Labor Code �201)
Existing law exempts certain industries from the requirement of
immediately paying wages upon discharge. These include:
a) Curing, canning or drying of perishable fruit, fish, or
vegetables (Labor Code �201);
b) Temporary services employers (Labor Code �201.3);
c) Production or broadcasting of motion pictures (Labor
Code �201.5);
d) Oil drilling (Labor Code �201.7); and
e) Employees covered by a collective bargaining agreement
who work at a venue that hosts live theatrical or concert
events and are enrolled in and routinely dispatched to
employment through a hiring hall or other system of regular
short-term employment.
(Labor Code �201.9)
Existing law requires that, if an employer willfully fails to
pay wages due to an employee who is discharge or who quits, the
wages of the employee shall continue as a penalty from the due
date thereof at the same rate until paid or until an action
therefor is commenced for up to 30 days. Penalties for failure
to timely pay wages can be sought until the expiration of the
statute of limitations for the wages in which the penalties are
being sought. (Labor Code �203)
Existing law currently excludes employees covered by a
collective bargaining agreement who work at a venue that hosts
live theatrical or concert events and are enrolled in and
routinely dispatched to employment through a hiring hall or
other system of regular short-term employment from being able to
receive liquidated damages due to an employer failing to pay
wages due to discharge.
This bill would allow the above-mentioned employees to pursue
liquidated damages due an employer failing to pay wages due to
discharge.
COMMENTS
1. The Creation of Labor Code �201.9:
The provision excluding unionized, regular short-term
theatrical employees from the requirement to pay wages
immediately upon discharge was created by SB 1719 (Cedillo) of
2006 (Statutes of 2006, Chapter 685). This bill, however, was
the product of a "gut and amend" on the Assembly Floor near
the end of session. Prior to those amendments, SB 1719
(Perata) dealt with transportation funding.
Hearing Date: June 11, 2014 AB 2743
Consultant: Gideon L. Baum Page 2
Senate Committee on Labor and Industrial Relations
As was noted above, unionized, regular short-term theatrical
employees are the only group of private employees in the State
of California that are excluded from pursuing liquidated
damages due to non-payment of wages after discharge. This
includes employees of the State of California, who are
frequently excluded from Labor Code provisions. Noting that
neither the Assembly nor Senate analyses discuss this
exclusion, it is likely that it was inadvertent and caused by
a drafting error.
AB 2743 would address this probable drafting error by allowing
unionized, regular short-term theatrical employees to pursue
liquidated damages due to non-payment of wages after
discharge.
2. Proponent Arguments :
None on file.
3. Opponent Arguments :
None on file.
4. Prior Legislation :
SB 1719 (Cedillo), Statutes of 2006, Chapter 685, was
discussed above.
SUPPORT
None on file.
OPPOSITION
None on file.
Hearing Date: June 11, 2014 AB 2743
Consultant: Gideon L. Baum Page 3
Senate Committee on Labor and Industrial Relations