BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 649|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 649
Author: Floyd (D)
Amended: As introduced
Vote: 21
SENATE PUBLIC EMP. & RET. COMMITTEE : 3-0, 7/12/99
AYES: Ortiz, Baca, Karnette
NOT VOTING: Haynes, Lewis
SENATE APPROPRIATIONS COMMITTEE : 9-2, 8/16/99
AYES: Johnston, Alpert, Bowen, Burton, Karnette,
McPherson, Mountjoy, Perata, Vasconcellos
NOES: Kelley, Leslie
NOT VOTING: Escutia, Johnson
ASSEMBLY FLOOR : 65-10, 5/20/99 - See last page for vote
SUBJECT : State employee pay
SOURCE : International Union of Operating Engineers
DIGEST : This bill requires state agency employers to
make payment of overtime wages no later than the payday for
the next regular payroll period.
ANALYSIS : 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,
CONTINUED
AB 649
Page
2
2. Requires employers, in the event of a dispute over
wages, to pay the undisputed portion,
3. Requires the Labor Commissioner to inquire diligently
for violations of these requirements,
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, and
6. Excludes from these provisions employees of the state,
counties or municipalities.
This bill :
1. Requires 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, and
2. Requires the Division of Labor Standards Enforcement
(Labor Commissioner) to investigate violations and will
require 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.
Prior Legislation
AB 2522 (Labor and Employment Committee) 1998, a similar
bill, was vetoed by Governor Pete Wilson. His veto message
stated:
"This bill would subject the state to specific provisions
of the Labor Code governing the payment of overtime wages.
This bill would also authorize the Department of Industrial
Relations, Division of Labor Standards Enforcement to
investigate violations of those provisions.
AB 649
Page
3
Current law exempts the state from the application of
specified provisions of the Labor Code regarding the
payment of overtime wages. Overtime pay is required,
however, by the Fair Labor Standards Act (FLSA). Overtime
pay provisions are also contained in collective bargaining
agreements. The appropriate agency for the enforcement of
overtime pay requirements under the FLSA is the United
States Department of Labor, Wage and Hour Division, not the
state Labor Commissioner's Office.
This bill unnecessarily creates conflicting authorities and
duplicates existing remedies for the enforcement of
overtime pay. In the event of overtime wage disputes,
state employees may take advantage of remedies already
available under the FLSA or through the grievance
procedures provided in their collective bargaining
agreements. The legislative creation of multiple
overlapping enforcement options is not the answer."
AB 2522 passed the Senate Floor 21-15 on 8/26/98 as
follows:
AYES: Alpert, Ayala, Calderon, Costa, Dills, Greene,
Hayden, Hughes, Johnston, Karnette, Lockyer, O'Connell,
Peace, Polanco, Rosenthal, Schiff, Sher, Solis, Thompson,
Vasconcellos, Watson
NOES: Brulte, Burton, Haynes, Hurtt, Johannessen, Johnson,
Kelley, Knight, Kopp, Lewis, McPherson, Monteith,
Mountjoy, Rainey, Wright
NOT VOTING: Craven, Leslie, Maddy
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 1999-2000 2000-01 2001-02 Fund
Damages potential cost for damagesGeneral
and
others
AB 649
Page
4
There is no information about the number of times that
state agencies have delayed in the payment of overtime due
workers, so it is difficult to determine the cost of
meeting the standard to which we hold private employers or
the potential for payment of damages.
Delayed payment of overtime happens for a variety of
reasons. If the Legislature and the Governor ever failed
to agree on a budget before the start of a new fiscal year,
the state could be liable for these penalties. A delay at
Cal-Trans occurred due to the establishment of a new
centralized payment system that had some problems during
implementation.
SUPPORT : (Verified 8/18/99)
International Union of Operating Engineers (source)
California Union of Safety Employees (CAUSE)
California Correctional Supervisors Organization (CCSO)
California Labor Federation, AFL-CIO
OPPOSITION : (Verified 8/18/99)
State Department of Finance
ARGUMENTS IN SUPPORT : The Operating Engineers, sponsor
of this legislation, points 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;
sometimes this payment is said to take almost a year.
ARGUMENTS IN OPPOSITION : The State Department of Finance
states that this bill would create conflicting authorities
by duplicating existing remedies for the enforcement of
overtime pay contained in the Fair Labor Standards Act and
the grievance procedure provided in collective bargaining
agreements. Finance notes that this bill could result in
significant costs to state departments by allowing the
assessment of treble damages.
ASSEMBLY FLOOR : 65-10, 5/20/99
AYES: Alquist, Aroner, Bates, Battin, Bock, Brewer,
AB 649
Page
5
Calderon, Cardenas, Cardoza, Corbett, Correa, Cox,
Cunneen, Davis, Dickerson, Ducheny, Dutra, Florez, Floyd,
Frusetta, Gallegos, Havice, Hertzberg, Honda, Jackson,
Keeley, Knox, Kuehl, Leach, Lempert, Leonard, Longville,
Lowenthal, Machado, Maddox, Maldonado, Margett, Mazzoni,
Migden, Nakano, Olberg, Oller, Robert Pacheco, Rod
Pacheco, Papan, Pescetti, Reyes, Romero, Scott, Shelley,
Soto, Steinberg, Strickland, Strom-Martin, Thompson,
Thomson, Torlakson, Washington, Wayne, Wesson, Wiggins,
Wildman, Wright, Zettel, Villaraigosa
NOES: Ackerman, Ashburn, Baldwin, Baugh, Briggs, Granlund,
House, Kaloogian, McClintock, Runner
NOT VOTING: Aanestad, Campbell, Cedillo, Firebaugh,
Vincent
TSM:jk 8/18/99 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****