UPDATE: Governor Signs Assembly Bill Expanding Overtime Protection For Farmworkers

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05/30/2017

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UPDATE: Governor Signs Assembly Bill Expanding Overtime Protection For Farmworkers

By: Rebecca Hause-Schultz

As we previously reported on September 7, 2016, the California Assembly sent Governor Jerry Brown bill 1066, which expands overtime for wage order 14 employees. Despite an industry wide effort urging the Governor to veto the bill, the bill was signed on September 12, 2016.

Under existing law, wage order 14 employees are entitled to overtime wages if they work more than 10 hours in a single day or if they work on a seventh consecutive day, unless they fall under the irrigator exception.  The new law mandates time-and-a-half pay for all wage order 14 employees who work more than 8 hours in a day or more than 40 in a week, and double pay for all wage order 14 employees who work more than 12 hours in a day.  The law puts California agriculture at a great competitive disadvantage when compared to the vast majority of other states who continue to exempt farmworkers from overtime requirements.

Until the new wage order is written, it is unclear whether the new law will apply to irrigators who were previously excluded from overtime altogether. However, the law states that it applies to “all” employees under wage order 14.

The bill goes into effect in 2019 for employers with 26 or more employees. The bill will phase in over time, slowly lowering the amount of hours before overtime benefits kicks in from the current standard. In 2022, it will finally reach the new standard of 8 hours in a day or 40 hours in a workweek. Employers with 25 or less employees would not have to comply with the law until 2022, and the law will phase in until it reaches the new standard in 2025.

COUNSEL TO MANAGEMENT:

California employers should start planning now to prepare for the implementation of AB 1066, and contact The Saqui Law Group with any questions regarding developing a plan for compliance with the law.

 

 
 

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