BILL ANALYSIS
AB 649
Page 1
ASSEMBLY THIRD READING
AB 649 (Floyd)
As Introduced February 23, 1999
Majority vote
LABOR AND EMPLOYMENT 8-1
APPROPRIATIONS 15-0
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|Ayes:|Steinberg, Gallegos, |Ayes:|Migden, Brewer, Campbell, |
| |Knox, Margett, Kuehl, | |Davis, Hertzberg, Kuehl, |
| |Oller, Romero, Keeley | |Maldonado, Papan, Romero, |
| | | |Shelley, Steinberg, |
| | | |Wesson, Wiggins, Zettel, |
| | | |Washington |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|McClintock | | |
| | | | |
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SUMMARY : Requires state agency employers to make payment of
overtime wages no later than the payday for the next regular
payroll period. Specifically, this bill requires:
1)State agency employers to make payment of wages earned, for
labor in excess of the normal work period, no later than the
payday for the next regular payroll period.
2)The Division of Labor Standards Enforcement (Labor
Commissioner) to investigate violations and requires the state
agency to pay any claim for those wages that the Labor
Commissioner finds to be due, following an investigation and
hearing, within 10 days after receiving the Labor
Commissioner's ruling, subject to treble damages for willful
failure to do so.
EXISTING LAW :
1)Requires wages earned for labor in excess of the normal work
period to be paid no later than the payday for the next
regular payroll period.
2)Requires employers, in the event of a dispute over wages, to
pay the undisputed portion.
AB 649
Page 2
3)Requires the Labor Commissioner to inquire diligently for
violations of these requirements, among others (sic).
4)Requires an employer to pay a wage claim within 10 days after
receipt of notice, following an investigation and hearing,
when the Labor Commissioner has determined that the wages are
due.
5)Provides that an employer who willfully fails to pay the wages
within the 10-day period is liable for treble damages to the
employee.
6)Excludes from these provisions employees of the state,
counties, or municipalities.
FISCAL EFFECT : According to the Assembly Appropriations
Committee analysis, per the Department of Industrial Relations,
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 United States Department of Labor, which has jurisdiction
over the Fair Labor Standards Act, which regulates overtime
provisions for state employees.
COMMENTS : Proponents of this legislation point out that many
state workers who are called to work an alternative work
schedule or during an emergency situation do not receive their
separate overtime check for this work until many months later.
Many times this can take almost a year.
This bill is identical to AB 2522 (Labor Committee) of 1998,
which passed the Legislature and was vetoed by Governor Wilson.
Analysis Prepared by : Ralph Lightstone / L. & E. / (916)
319-2091
FN: 0000676