Bill Text: CA AB1744 | 2011-2012 | Regular Session | Chaptered
Bill Title: Employee compensation: itemized statements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-30 - Chaptered by Secretary of State - Chapter 844, Statutes of 2012. [AB1744 Detail]
Download: California-2011-AB1744-Chaptered.html
BILL NUMBER: AB 1744 CHAPTERED
BILL TEXT
CHAPTER 844
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2012
APPROVED BY GOVERNOR SEPTEMBER 30, 2012
PASSED THE SENATE AUGUST 31, 2012
PASSED THE ASSEMBLY AUGUST 31, 2012
AMENDED IN SENATE AUGUST 31, 2012
AMENDED IN SENATE AUGUST 24, 2012
AMENDED IN SENATE AUGUST 23, 2012
AMENDED IN SENATE AUGUST 20, 2012
AMENDED IN SENATE AUGUST 16, 2012
AMENDED IN SENATE JULY 5, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Bonnie Lowenthal
FEBRUARY 17, 2012
An act to amend Sections 226 and 2810.5 of, and to add Section
226.1 to, the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1744, Bonnie Lowenthal. Employee compensation: itemized
statements.
Existing law requires every employer, semimonthly or at the time
of each payment of wages, to furnish each employee with an accurate
itemized statement in writing showing specified information. Existing
law provides that a knowing and intentional violation of this
provision is a misdemeanor.
This bill would additionally require, on and after July 1, 2013,
that the itemized statement include, if the employer is a temporary
services employer, the rate of pay and the total hours worked for
each assignment, with a specified exception.
Existing law requires an employer to provide each employee, at the
time of hiring, with a notice that includes specified information,
such as the rate and the basis, whether hourly, salary, commission,
or otherwise, of the employee's wages, and to notify each employee in
writing of any changes to the information set forth in the notice
within 7 calendar days of the changes unless such changes are
reflected on a timely wage statement or another writing, as
specified.
This bill would additionally require that, if the employer is a
temporary services employer, as specified, the notice include the
name, the physical address of the main office, the mailing address if
different from the physical address of the main office, and the
telephone number of the legal entity for whom the employee will
perform work, and any other information the Labor Commissioner deems
material and necessary.
Because a willful violation of the bill's provisions would be a
crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would incorporate changes to Section 226 of the Labor
Code proposed by SB 1255 and AB 2674, to be operative only if this
bill and either or both of those bills are chaptered and became
effective on or before January 1, 2013, and this bill is chaptered
last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 226 of the Labor Code is amended to read:
226. (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of the
employer, and (9) all applicable hourly rates in effect during the
pay period and the corresponding number of hours worked at each
hourly rate by the employee and, beginning July 1, 2013, if the
employer is a temporary services employer as defined in Section
201.3, the rate of pay and the total hours worked for each temporary
services assignment. The deductions made from payment of wages shall
be recorded in ink or other indelible form, properly dated, showing
the month, day, and year, and a copy of the statement and the record
of the deductions shall be kept on file by the employer for at least
three years at the place of employment or at a central location
within the State of California.
(b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure the identity of a current or former employee. If the
employer provides copies of the records, the actual cost of
reproduction may be charged to the current or former employee.
(c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
(d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
(e) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not exceeding an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
(f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
(g) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
(h) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
(i) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall use no more than the last four digits of the employee's
social security number or shall use an employee identification number
other than the social security number on the itemized statement
provided with the check, draft, or voucher.
SEC. 1.3. Section 226 of the Labor Code is amended to read:
226. (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and only the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of the
employer, and (9) all applicable hourly rates in effect during the
pay period and the corresponding number of hours worked at each
hourly rate by the employee and, beginning July 1, 2013, if the
employer is a temporary services employer as defined in Section
201.3, the rate of pay and the total hours worked for each temporary
services assignment. The deductions made from payment of wages shall
be recorded in ink or other indelible form, properly dated, showing
the month, day, and year, and a copy of the statement and the record
of the deductions shall be kept on file by the employer for at least
three years at the place of employment or at a central location
within the State of California.
(b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure the identity of a current or former employee. If the
employer provides copies of the records, the actual cost of
reproduction may be charged to the current or former employee.
(c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
(d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
(e) (1) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not to exceed an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
(2) (A) An employee is deemed to suffer injury for purposes of
this subdivision if the employer fails to provide a wage statement.
(B) An employee is deemed to suffer injury for purposes of this
subdivision if the employer fails to provide accurate and complete
information as required by any one or more of items (1) to (9),
inclusive, of subdivision (a) and the employee cannot promptly and
easily determine from the wage statement alone one or more of the
following:
(i) The amount of the gross wages or net wages paid to the
employee during the pay period or any of the other information
required to be provided on the itemized wage statement pursuant to
items (2) to (4), inclusive, (6), and (9) of subdivision (a).
(ii) Which deductions the employer made from gross wages to
determine the net wages paid to the employee during the pay period.
Nothing in this subdivision alters the ability of the employer to
aggregate deductions consistent with the requirements of item (4) of
subdivision (a).
(iii) The name and address of the employer and, if the employer is
a farm labor contractor, as defined in subdivision (b) of Section
1682, the name and address of the legal entity that secured the
services of the employer during the pay period.
(iv) The name of the employee and only the last four digits of his
or her social security number or an employee identification number
other than a social security number.
(C) For purposes of this paragraph, "promptly and easily determine"
means a reasonable person would be able to readily ascertain the
information without reference to other documents or information.
(3) For purposes of this subdivision, a "knowing and intentional
failure" does not include an isolated and unintentional payroll error
due to a clerical or inadvertent mistake. In reviewing for
compliance with this section, the factfinder may consider as a
relevant factor whether the employer, prior to an alleged violation,
has adopted and is in compliance with a set of policies, procedures,
and practices that fully comply with this section.
(f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
(g) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
(h) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
(i) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall use no more than the last four digits of the employee's
social security number or shall use an employee identification number
other than the social security number on the itemized statement
provided with the check, draft, or voucher.
SEC. 1.5. Section 226 of the Labor Code is amended to read:
226. (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of the
employer, and (9) all applicable hourly rates in effect during the
pay period and the corresponding number of hours worked at each
hourly rate by the employee and, beginning July 1, 2013, if the
employer is a temporary services employer as defined in Section
201.3, the rate of pay and the total hours worked for each temporary
services assignment. The deductions made from payment of wages shall
be recorded in ink or other indelible form, properly dated, showing
the month, day, and year, and a copy of the statement and the record
of the deductions shall be kept on file by the employer for at least
three years at the place of employment or at a central location
within the State of California. For purposes of this subdivision,
"copy" includes a duplicate of the itemized statement provided to an
employee or a computer-generated record that accurately shows all of
the information required by this subdivision.
(b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure the identity of a current or former employee. If the
employer provides copies of the records, the actual cost of
reproduction may be charged to the current or former employee.
(c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
(d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
(e) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not exceeding an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
(f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
(g) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
(h) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
(i) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall use no more than the last four digits of the employee's
social security number or shall use an employee identification number
other than the social security number on the itemized statement
provided with the check, draft, or voucher.
SEC. 1.7. Section 226 of the Labor Code is amended to read:
226. (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and only the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of the
employer, and (9) all applicable hourly rates in effect during the
pay period and the corresponding number of hours worked at each
hourly rate by the employee and, beginning July 1, 2013, if the
employer is a temporary services employer as defined in Section
201.3, the rate of pay and the total hours worked for each temporary
services assignment. The deductions made from payment of wages shall
be recorded in ink or other indelible form, properly dated, showing
the month, day, and year, and a copy of the statement and the record
of the deductions shall be kept on file by the employer for at least
three years at the place of employment or at a central location
within the State of California. For purposes of this subdivision,
"copy" includes a duplicate of the itemized statement provided to an
employee or a computer-generated record that accurately shows all of
the information required by this subdivision.
(b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure the identity of a current or former employee. If the
employer provides copies of the records, the actual cost of
reproduction may be charged to the current or former employee.
(c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
(d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
(e) (1) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not to exceed an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
(2) (A) An employee is deemed to suffer injury for purposes of
this subdivision if the employer fails to provide a wage statement.
(B) An employee is deemed to suffer injury for purposes of this
subdivision if the employer fails to provide accurate and complete
information as required by any one or more of items (1) to (9),
inclusive, of subdivision (a) and the employee cannot promptly and
easily determine from the wage statement alone one or more of the
following:
(i) The amount of the gross wages or net wages paid to the
employee during the pay period or any of the other information
required to be provided on the itemized wage statement pursuant to
items (2) to (4), inclusive, (6), and (9) of subdivision (a).
(ii) Which deductions the employer made from gross wages to
determine the net wages paid to the employee during the pay period.
Nothing in this subdivision alters the ability of the employer to
aggregate deductions consistent with the requirements of item (4) of
subdivision (a).
(iii) The name and address of the employer and, if the employer is
a farm labor contractor, as defined in subdivision (b) of Section
1682, the name and address of the legal entity that secured the
services of the employer during the pay period.
(iv) The name of the employee and only the last four digits of his
or her social security number or an employee identification number
other than a social security number.
(C) For purposes of this paragraph, "promptly and easily determine"
means a reasonable person would be able to readily ascertain the
information without reference to other documents or information.
(3) For purposes of this subdivision, a "knowing and intentional
failure" does not include an isolated and unintentional payroll error
due to a clerical or inadvertent mistake. In reviewing for
compliance with this section, the factfinder may consider as a
relevant factor whether the employer, prior to an alleged violation,
has adopted and is in compliance with a set of policies, procedures,
and practices that fully comply with this section.
(f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
(g) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
(h) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
(i) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall use no more than the last four digits of the employee's
social security number or shall use an employee identification number
other than the social security number on the itemized statement
provided with the check, draft, or voucher.
SEC. 2. Section 226.1 is added to the Labor Code, to read:
226.1. The requirements of item (9) of subdivision (a) of Section
226, with respect to a temporary services employer, do not apply to
a security services company that is licensed by the Department of
Consumer Affairs and that solely provides security services.
SEC. 3. Section 2810.5 of the Labor Code is amended to read:
2810.5. (a) (1) At the time of hiring, an employer shall
provide to each employee a written notice, in the language the
employer normally uses to communicate employment-related information
to the employee, containing the following information:
(A) The rate or rates of pay and basis thereof, whether paid by
the hour, shift, day, week, salary, piece, commission, or otherwise,
including any rates for overtime, as applicable.
(B) Allowances, if any, claimed as part of the minimum wage,
including meal or lodging allowances.
(C) The regular payday designated by the employer in accordance
with the requirements of this code.
(D) The name of the employer, including any "doing business as"
names used by the employer.
(E) The physical address of the employer's main office or
principal place of business, and a mailing address, if different.
(F) The telephone number of the employer.
(G) The name, address, and telephone number of the employer's
workers' compensation insurance carrier.
(H) Any other information the Labor Commissioner deems material
and necessary.
(2) The Labor Commissioner shall prepare a template that complies
with the requirements of paragraph (1). The template shall be made
available to employers in such manner as determined by the Labor
Commissioner.
(3) If the employer is a temporary services employer, as defined
in Section 201.3, the notice described in paragraph (1) must also
include the name, the physical address of the main office, the
mailing address if different from the physical address of the main
office, and the telephone number of the legal entity for whom the
employee will perform work, and any other information the Labor
Commissioner deems material and necessary. The requirements of this
paragraph do not apply to a security services company that is
licensed by the Department of Consumer Affairs and that solely
provides security services.
(b) An employer shall notify his or her employees in writing of
any changes to the information set forth in the notice within seven
calendar days after the time of the changes, unless one of the
following applies:
(1) All changes are reflected on a timely wage statement furnished
in accordance with Section 226.
(2) Notice of all changes is provided in another writing required
by law within seven days of the changes.
(c) For purposes of this section, "employee" does not include any
of the following:
(1) An employee directly employed by the state or any political
subdivision thereof, including any city, county, city and county, or
special district.
(2) An employee who is exempt from the payment of overtime wages
by statute or the wage orders of the Industrial Welfare Commission.
(3) An employee who is covered by a valid collective bargaining
agreement if the agreement expressly provides for the wages, hours of
work, and working conditions of the employee, and if the agreement
provides premium wage rates for all overtime hours worked and a
regular hourly rate of pay for those employees of not less than 30
percent more than the state minimum wage.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
SEC. 5. (a) Section 1.3 of this bill incorporates amendments to
Section 226 of the Labor Code proposed by both this bill and SB 1255.
It shall only become operative if (1) both bills are enacted and
become effective on or before January 1, 2013, (2) each bill amends
Section 226 of the Labor Code, (3) AB 2674 is not enacted or as
enacted does not amend that section, and (4) this bill is enacted
after SB 1255, in which case Sections 1, 1.5 and 1.7 of this bill
shall not become operative.
(b) Section 1.5 of this bill incorporates amendments to Section
226 of the Labor Code proposed by both this bill and AB 2674. It
shall only become operative if (1) both bills are enacted and become
effective on or before January 1, 2013, (2) each bill amends Section
226 of the Labor Code, (3) SB 1255 is not enacted or as enacted does
not amend that section, and (4) this bill is enacted after AB 2674 in
which case Sections 1, 1.3 and 1.7 of this bill shall not become
operative.
(c) Section 1.7 of this bill incorporates amendments to Section
226 of the Labor Code proposed by this bill, SB 1255, and AB 2674. It
shall only become operative if (1) all three bills are enacted and
become effective on or before January 1, 2013, (2) all three bills
amend Section 226 of the Labor Code, and (3) this bill is enacted
after SB 1255 and AB 2674, in which case Sections 1, 1.3 and 1.5 of
this bill shall not become operative.
