Description
On July 20, 1999, Governor Davis signed landmark wage-hour legislation, AB 60, into law. The legislation, which is called the “Eight-Hour-Day Restoration and Workplace Flexibility Act of 1999,” will have a major impact on virtually all California employers. In addition to reinstating the daily overtime provisions of California law, the legislation creates other overtime standards, changes the exemption rules and establishes new rules regarding “alternative workweek schedules,” meal periods, sick leave, personal liability, a citation system, and numerous other novel requirements. It is the most significant wage-hour legislation in over 20 years.
In this publication, Attorney Richard J. Simmons of the law firm Sheppard, Mullin, Richter & Hampton LLP. reviews this legislation in a concise and understandable manner. The publication reviews AB 60’s rules including:
- Overtime Rules
- Alternative Work Schedule Rules
- Salary Basis Rules
- Makeup Time Standards
- Citation System
- Sample Make-Up Time Form & Policy
- Final IWC Rules
- Sample Time Card Verifications
- Sick Leave Rules – AB 109
- Exemption Standards
- Personal Liability Standards
- Meal Period Standards
- Union Employee Changes
- Professional Exemption Rules
- DLSE Enforcement Policies
- Meal And Rest Period Penalties
Table Of Contents
SECTION 1 INTRODUCTION
SECTION 2 THE THRUST OF THE LEGISLATION
2.1 The Legislation’s Intent
2.2 IWC Actions
2.3 The DLSE Enforcement Policy
2.4 Employer Coverage
2.5 Minimum Wages
SECTION 3 OVERVIEW OF PROVISIONS
3.1 Definitions
3.2 Overtime, Meal Period, And Make-Up Time Provisions
3.3 Exemptions
3.4 IWC Authority And Maximum Hour Standards
3.5 Personal Liability, Citation System, And Special Industry Standards
3.6 Wage Order Coverage
3.7 Exemptions From Coverage
SECTION 4 THE OVERTIME STANDARDS
4.1 The Overtime Zones
4.2 Make-Up Time
4.3 Exemptions For Union Employees
4.4 Alternative Workweek Schedules
4.5 Camp Counselors And Personal Attendants
4.6 Part-Time Employees
4.7 Agricultural Occupations
4.8 Overtime Rate For Nonexempt Salaried Employees
4.9 Repeal Of Special Standards
SECTION 5 WHITE COLLAR EXEMPTIONS
5.1 The Remuneration/Salary Test
5.2 The Duties Test
5.3 Registered Nurses And Pharmacists
5.4 Outside Salespersons
5.5 Highly-Skilled Computer-Related Occupations And Advanced Practice Nurses — SB 88
SECTION 6 OTHER EXEMPTIONS
6.1 On-Site Construction, Mining, Logging, And Drilling
6.2 Commercial Fishing Industry
6.3 Ski Industry
6.4 Stable Employees
6.5 National Service Program
6.6 Other Exemptions
SECTION 7 COMMUTING TIME
SECTION 8 THE USE OF ALTERNATIVE WORKWEEK SCHEDULES
8.1 Advantages Of Flexible Schedules
8.2 AB 60 Dramatically Reduces Flexibility
8.3 AWSs May Include A Single Work Schedule Or A Menu Of Work Schedule Options
8.4 AWS Overtime Standards
8.5 Repeal Of AWSs
8.6 Termination Of An AWS By Employers
8.7 Regular Rate Reductions
8.8 Grandfather Rule For Individuals Working Voluntary Schedules In 1999
8.9 Effect On Existing Flexible Work Arrangements
8.10 Grace Period For Healthcare Employers
8.11 Grandfather Protection For Pre-1998 Arrangements
SECTION 9 HEALTHCARE INDUSTRY RULES
9.1 Introduction
9.2 Alternative Workweek Schedules
9.3 Grandfather Provisions
9.4 New 12-Hour Shift Arrangements
9.5 Back-to-Back Workweeks
SECTION 10 MEAL PERIOD AND DAY OF REST RULES
10.1 Meal Period Rules
10.2 Missed Meal And Rest Period Penalties
10.3 Day Of Rest Rules
SECTION 11 UNION EMPLOYEES
SECTION 12 OVERTIME PAY COMPUTATIONS
SECTION 13 NEW FINES AND SANCTIONS
13.1 Civil Penalties
13.2 Citation System
13.3 Personal Liability
13.4 Procedure Under Section 1197.1
13.5 Meal And Rest Period Penalties
SECTION 14 IWC MANDATES
14.1 Meal And Rest Periods
14.2 Special Industry Rules
14.3 IWC Study
14.4 Posting Obligations
SECTION 15 NEW SICK LEAVE RULES
15.1 Covered Employers
15.2 Covered Family Members
15.3 Amount Of Sick Leave Available To Care For Family Members
15.4 Conditions And Restrictions
15.5 Definition Of Sick Leave
15.6 Effect On FMLA Leave
15.7 Prohibitions Against Discrimination
15.8 Remedies
APPENDIX A MAKE-UP TIME REQUEST
APPENDIX B MAKE-UP TIME POLICY
APPENDIX C SAMPLE TIME CARD ACKNOWLEDGMENTS FOR MEAL AND REST PERIODS
APPENDIX D ASSEMBLY BILL NO. 60
APPENDIX E PRIOR IWC INTERIM WAGE ORDER 2000 AND STATEMENT AS TO THE BASIS FOR INTERIM WAGE ORDER 2000 (MARCH 1, 2000)
APPENDIX F IWC NOTICE OF ACTIONS TAKEN AT PUBLIC HEARING ON JUNE 30, 2000
APPENDIX G IWC STATEMENT AS TO THE BASIS FOR OCTOBER 1, 2000 WAGE ORDERS
APPENDIX H IWC INTERIM WAGE ORDER (AS AMENDED EFFECTIVE OCTOBER 1, 2000)
APPENDIX I IWC SUMMARY OF AMENDMENTS TO WAGE ORDERS 1-15 AND INTERIM WAGE ORDER – 2000
APPENDIX J ASSEMBLY BILL NO. 109
About The Author
Richard J. Simmons is a Partner in the law firm of Sheppard, Mullin, Richter & Hampton LLP in Los Angeles. He represents employers in various employment law matters involving litigation throughout the country and general advice regarding state and federal wage and hour laws, employment discrimination, wrongful discharge, employee discipline and termination, employee benefits, affirmative action, union representation proceedings, and arbitrations. Mr. Simmons received his B.A., summa cum laude, from the University of Massachusetts, where he was a Commonwealth Scholar and graduated in the Phi Kappa Phi Honor Society. He received his J.D. from Berkeley Law at the University of California at Berkeley where he was the Editor-in-Chief of the Industrial Relations Law Journal, now the Berkeley Journal of Employment and Labor Law.
Mr. Simmons argued the only case before the California Supreme Court that produced a victory for employers and business in 2018. He was recently recognized as the Labor and Employment Attorney of the Year by the Los Angeles Business Journal and was inducted into the Employment Lawyers Hall of Fame. He has lectured nationally on wage and hour, employment discrimination, wrongful termination, and other employment and labor relations matters. He is a member of the National Advisory Board to the Berkeley Journal of Employment and Labor Law, published by Berkeley Law at the University of California at Berkeley. He was also appointed by the California Industrial Welfare Commission as a member of three Minimum Wage Boards for the State of California.
