Officially entitled the "Eight-Hour-Day-Restoration and Workplace Flexibility Act of 1999 (the Act)," California's new overtime law requires employers to pay workers at one and a half times the normal rate if they work more than eight hours in a day. Additionally, workers will be entitled to double pay after working 12 hours in a day. Listed below are the answers to some of the most frequently asked questions regarding this new law. Employers with employees working in California should immediately review and revise their policies and practices to ensure compliance with the Act. If you have any question as to your overtime practices, you should consultant with an attorney before the end of the year.
How will this affect workers who choose to work a non-traditional work week?
When the Act goes into effect on January 1, 2000, it will make several significant changes including nullifying many of the alternative work schedules already in place throughout the state. However, the Act's overtime pay provision will not apply to employees who work no longer than 10 hours per day within a 40-hour workweek provided that a specific process is followed when instituting an alternative workweek schedule. This process requires that the "4/10" schedule be adopted by two-thirds of the affected employees in a secret ballot election, and notice of the new schedule be provided to the Division of Labor Statistics and Research within 30 days. Employees working pursuant to a valid alternative workweek schedule will remain eligible for overtime pay at the rate of one and a half times their regular rate of pay for any hours worked above 10 hours, but less than 12 hours, in a workday. They must be paid no less than twice their regular pay rate for any hours worked above 12 hours in a workday.
How will the Act affect an exempt, salaried employees?
Employees working in an administrative, executive or professional capacity will still be exempt provided they meet the minimum pay requirements. Under the Act, employees qualifying for these "white collar" exemptions must earn a monthly salary equivalent to no less than two times the minimum wage for full-time employment. Based on the current minimum wage rate, the monthly salary requirement will now be $1,994 or $23,920 annually.
What about employees who wish to make-up personal time off for medical or dental appointments, etc.?
The employee must sign a written request to make up work time lost due to his or her personal obligations. The request should clearly state the hours the employee will be taking off, the reason for the time off and the date the employee will make-up the time. The make-up time will not count toward computing the total daily work hours for overtime purposes as long as it is completed during the same workweek in which the time was lost, except if the total hours worked exceed 11 in one workday or 40 in one workweek. The Act forbids employers from encouraging or soliciting employees to utilize make-up time in lieu of overtime pay.
Does the Act affect current meal period requirements?
The Act codifies the prohibition contained in existing wage orders providing that employees who work more than five hours per day must receive a meal period of not less than 30 minutes. Additionally, employees who work more than 10 hours per day must receive a second meal period of not less than 30 minutes. These meal period requirements may be waived by mutual consent of the employer and employee for the first 30 minute break if the total daily work period does not exceed six hours and for the second 30 minute break if the work period does not exceed twelve hours.
Please do not hesitate to contact our firm in the event that any of these employment issues are of concern to you or your company.