BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 649
                                                          Page  1

Date of Hearing:   May 12, 1999

              ASSEMBLY COMMITTEE ON APPROPRIATIONS 
                    Carole Migden, Chairwoman

       AB 649 (Floyd) - As Introduced: February 23, 1999 

Policy Committee:                              Labor and  
Employment   Vote:                             8-1

Urgency:     No                   State Mandated Local  
Program:NoReimbursable:           

  SUMMARY  :

This bill requires state agencies to pay overtime wages no later  
than the payday for the next regular payroll period.   
Additionally, the bill subjects violations to review by the  
Labor Commissioner and authorizes the assessment of treble  
damages for willful violations.

  FISCAL EFFECT  :

According to the Department of Industrial Relations, the bill  
would result in minor costs to state agencies, less than  
$100,000 annually, since few claims would be filed against the  
state for delayed overtime payments.  Any claims filed against  
state agencies would likely be due to administrative problems,  
rather than willful neglect, and would not result in treble  
damages.  Additionally, the Labor Commissioner likely would  
defer claims to the U.S. Department of Labor, which has  
jurisdiction over the Fair Labor Standards Act (FLSA), which  
regulates overtime provisions for state employees.

  COMMENTS  :

  1)Background.   There is no information about the number of times  
  that state agencies have delayed payment of overtime due  
  workers, so it is difficult to determine the cost of meeting  
  the standard to which the state holds private employers.   
  Delayed payment of overtime happens for a variety of reasons.   
  Recent delays at Cal-Trans were due to the establishment of a  
  new centralized payment system that had some problems during  
  implementation.

  2)Rationale.   Sponsored by the California-Nevada Conference of  
  Operating Engineers, this bill is intended to address the  






                                                          AB 649
                                                          Page  2

  problem of delayed payments for overtime work by state  
  employees who are called to work an alternative work schedule  
  or during an emergency situation.  The sponsor indicates state  
  workers in these situations may not receive their overtime pay  
  until many months after the work is performed.

  3)Opposition.   The state already pays overtime and provides for  
  a complaint and grievance procedure to address any disputes.   
  In addition, non-represented state employees have the right to  
  file a complaint for overtime with Wage and Hour Division of  
  the United States Department of Labor when a claim is not  
  resolved.  It is the U.S. Department of Labor, not the Labor  
  Commissioner, that is charged with interpreting and enforcing  
  the Fair Labor Standards Act (FLSA), which regulates overtime  
  provisions for state employees.

  Analysis Prepared by  :    Stephen Shea / APPR. / (916)319-2081