Benefits

On July 20, 1999, Governor Davis signed AB 60 that restores daily overtime compensation, effective January 1, 2000, overturning changes made in 1997 that required overtime pay only after 40 hours in a week.

AB 60 requires non-unionized, non-exempt employees to get time and a half for hours worked beyond eight in a day, and double-time for hours worked beyond 12 a day. The new law reinstates the old regulation, including:

• Hours worked in excess of 8 hours in one day, hours worked in excess of 40 hours in one workweek, and the first 8 hours worked on the 7th day of work in a given workweek are to be compensated at the rate of no less than 1 1/2 times the regular rate of pay of an employee.
• 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 a workweek are to be compensated at the rate of no less than twice the regular rate of pay of an employee.
• Employees working pursuant to an alternative workweek schedule under other specified provisions of this bill would be exempt from these requirements.

AB 60 also adds some new provisions:

• Provides for the continuation of four 10-hour days, without overtime, for employees who currently work these flexible shifts and who want to continue working them. The employee must request the continuation in writing and have that request approved by the employer.
• Allows employers to approve the written request of an employee to make up work time that is lost as a result of a personal obligation of the employee. If the make-up work time is performed in the same workweek in which the time was lost, it need not be counted as overtime, except for hours worked in excess of 11 in one day or 40 hours in one workweek.
• Allows certain industries with seasonal employees, such as ski businesses, to still not pay overtime after eight daily hours until July 1, 2000 when the question will be revisited by the IWC.
• Imposes personal liability on supervisors who violate the law.
• Provides for monetary sanctions against both employers and supervisors.
• Allows employees to work no longer than 10 work hours per day within a 40-hour workweek without the payment of overtime when approved by at least 2/3 of the affected employees in a work unit by secret ballot.
• Expands the definition of exemption from overtime to include a minimum salary of two times the state hourly wage minimum (based on a 40 hour workweek) and requires that more than 50% of the exempt employees time be dedicated to exempt duties.

This legislation does not does not cover managers, professionals, union members, or public employees. AB 60 puts into law that which had previously been covered as a state agency regulation