Bill Text: CA AB2103 | 2011-2012 | Regular Session | Chaptered
Bill Title: Employment: wages and hours: overtime.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2012-09-30 - Chaptered by Secretary of State - Chapter 820, Statutes of 2012. [AB2103 Detail]
Download: California-2011-AB2103-Chaptered.html
BILL NUMBER: AB 2103 CHAPTERED
BILL TEXT
CHAPTER 820
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2012
APPROVED BY GOVERNOR SEPTEMBER 30, 2012
PASSED THE SENATE AUGUST 13, 2012
PASSED THE ASSEMBLY MAY 7, 2012
AMENDED IN ASSEMBLY APRIL 10, 2012
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Ammiano
FEBRUARY 23, 2012
An act to amend Section 515 of the Labor Code, relating to
employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2103, Ammiano. Employment: wages and hours: overtime.
(1) Existing law, with certain exceptions, establishes 8 hours as
a day's work and a 40-hour workweek, and requires payment of
prescribed overtime compensation for additional hours worked. A
violation of overtime compensation laws is a crime. Existing law
provides that for the purpose of computing the overtime rate of
compensation required to be paid to a nonexempt full-time salaried
employee, the employee's regular hourly rate shall be1/40th of the
employee's weekly salary.
This bill would provide that payment of a fixed salary to a
nonexempt employee shall be deemed to provide compensation only for
the employee's regular, nonovertime hours, notwithstanding any
private agreement to the contrary. Because a violation of this
provision would be a crime, the bill would impose a state-mandated
local program.
(2) 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. It is the intent of the Legislature, in enacting this
act, to overturn the decision in Arechiga v. Dolores Press (2011) 192
Cal.App.4th 567.
SEC. 2. Section 515 of the Labor Code is amended to read:
515. (a) The Industrial Welfare Commission may establish
exemptions from the requirement that an overtime rate of compensation
be paid pursuant to Sections 510 and 511 for executive,
administrative, and professional employees, if the employee is
primarily engaged in the duties that meet the test of the exemption,
customarily and regularly exercises discretion and independent
judgment in performing those duties, and earns a monthly salary
equivalent to no less than two times the state minimum wage for
full-time employment. The commission shall conduct a review of the
duties that meet the test of the exemption. The commission may, based
upon this review, convene a public hearing to adopt or modify
regulations at that hearing pertaining to duties that meet the test
of the exemption without convening wage boards. Any hearing conducted
pursuant to this subdivision shall be concluded not later than July
1, 2000.
(b) Except as otherwise provided in this section and in
subdivision (g) of Section 511, nothing in this section requires the
commission to alter an exemption from provisions regulating hours of
work that was contained in a valid wage order in effect in 1997.
Except as otherwise provided in this division, the commission may
review, retain, or eliminate an exemption from provisions regulating
hours of work that was contained in a valid wage order in effect in
1997.
(c) For the purposes of subdivision (a), "full-time employment"
means employment in which an employee is employed for 40 hours per
week.
(d) (1) For the purpose of computing the overtime rate of
compensation required to be paid to a nonexempt full-time salaried
employee, the employee's regular hourly rate shall be1/40th of the
employee's weekly salary.
(2) Payment of a fixed salary to a nonexempt employee shall be
deemed to provide compensation only for the employee's regular,
nonovertime hours, notwithstanding any private agreement to the
contrary.
(e) For the purposes of this section, "primarily" means more than
one-half of the employee's worktime.
(f) (1) In addition to the requirements of subdivision (a), a
registered nurse employed to engage in the practice of nursing shall
not be exempted from coverage under the orders of the Industrial
Welfare Commission, unless he or she individually meets the criteria
for exemptions established for executive or administrative employees.
(2) This subdivision does not apply to any of the following:
(A) A certified nurse midwife who is primarily engaged in
performing duties for which certification is required pursuant to
Article 2.5 (commencing with Section 2746) of Chapter 6 of Division 2
of the Business and Professions Code.
(B) A certified nurse anesthetist who is primarily engaged in
performing duties for which certification is required pursuant to
Article 7 (commencing with Section 2825) of Chapter 6 of Division 2
of the Business and Professions Code.
(C) A certified nurse practitioner who is primarily engaged in
performing duties for which certification is required pursuant to
Article 8 (commencing with Section 2834) of Chapter 6 of Division 2
of the Business and Professions Code.
(D) Nothing in this paragraph shall exempt the occupations set
forth in subparagraphs (A), (B), and (C) from meeting the
requirements of subdivision (a).
SEC. 3. 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.
