Wage Discrimination and Overtime Pay Bills
This is a busy time of year in the California legislature as many new bills will be heard by their original committee or referred to a second committee by the end of April or first part of May. Four notable bills address 1) overtime compensation for private school teachers, 2) wage discrimination, 3) gender pay differentials, and 4) overtime compensation for executive, administrative, or professional employees. We take a quick glance at these bills and highlight next steps for each below.
SB 621 (Bradford) – Overtime Compensation; Private School Teachers
This bill is a follow-up to AB 2230 (Chu) from last year, which established a new earnings standard for designating private school teachers as exempt employees (de-coupled from the “twice the state minimum wage” standard). Specifically, existing law provides that 8 hours of labor constitutes a day’s work. Under existing law, any work in excess of 8 hours in one workday and any work in excess of 40 hours in any one workweek, and the first 8 hours worked on the 7th day of work in any one workweek, is required to be compensated at the rate of no less than 11/2 times the regular rate of pay for an employee. Existing law also provides that hours worked in excess of 12 hours in one day as well as hours worked in excess of 8 hours on any 7th day of work are to be compensated at the rate of no less than twice the regular rate of pay of an employee. Existing law exempts from these provisions an individual employed as a teacher at a private elementary or secondary academic institution if specified requirements are met, including, among others, that the employee earns a monthly salary equivalent to the greater of no less than the lowest salary offered by any school district or the equivalent of no less than 70% of the lowest schedule salary offered by the school district or county office of education in which the private elementary or secondary institution is located, as specified.
AB 46 (Cooper) – Employers; wage discrimination
AB 1209 (Gonzalez Fletcher) – Employers; gender pay differentials
AB 1565 (Thurmond) – Work hours; overtime compensation; executive, administrative, or professional employees
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. Existing law authorizes the Industrial Welfare Commission to establish exemptions from overtime pay requirements for certain executive, administrative, and professional employees, as prescribed. Existing law establishes the Division of Labor Standards Enforcement in the Department of Industrial Relations for the enforcement of labor laws, including orders of the commission.
This bill would exempt from overtime compensation an executive, administrative, or professional employee, as defined, if the employee earns a monthly salary equivalent to either $3,956 or an amount no less than twice the state minimum wage for full-time employment, as defined, whichever amount is higher.
Next Steps: Re-referred to Committee on Labor & Employment; Hearing Date 4/19/17
California Employment Law
Leading California employment lawyers at Kingsley & Kingsley will be monitoring these bills, among many others working their way through the California legislature. In the meantime, if you have any questions about California’s wage and hour laws, contact Kingsley & Kingsley to speak with one of our experienced labor lawyers.
Kingsley & Kingsley
16133 Ventura Boulevard, Suite 1200
Encino, California 91436
Local: 818-990-8300 (Los Angeles Co.)