Come July, you can expect several changes in the wage and hour regulations. That’s because the new daily overtime law gives the California Industrial Welfare Commission until July 2000 to review the current overtime rules and come up with new regulations and wage orders. At stake are modifications to a variety of wage and hour rules—from overtime exemptions to alternative workweek requirements—that will impact most California employers. Over the next few months, several hearings will take place regarding adjustments to the recently issued Interim Wage Order. Here’s a rundown of what happened at two recent hearings and what’s coming in the near future.
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.
Employers And Workers Storm Sacramento
On March 31, 2000, labor advocates and employers flooded the halls of the state Capitol to air their views on several controversial issues:
- Highly paid workers. The IWC tabled for the time being a proposal to exempt highly paid employees from overtime. The proposal would have created a new overtime exemption for workers who earn more than two and a half times the minimum wage and receive additional compensation, such as stock options.
- Managerial exemption. Under a proposed change, employees would be considered to be engaged in managerial work and not eligible for overtime if they were “mentally or physically” directing, supervising and monitoring business operations; evaluating business performance; or handling customer relations. This would be true even if they were simultaneously performing other typically nonexempt tasks such as production work. Plus, there would be a new rule that any employee in charge of an independent or physically separate branch, department or business unit is primarily engaged in managerial work and therefore exempt. The IWC made no decisions on these proposals and further debate is expected.
- New wage boards. The IWC appointed management and labor representatives to sit on two new wage boards—one for the computer industry and the other for the construction, mining, drilling and logging industries. Each board will hold hearings throughout the state and then make recommendations to the IWC on changes to the overtime laws. The computer wage board will likely consider a new overtime exemption for computer professionals. If a new exemption is created, however, it could be tied up in court for years because the new daily overtime law doesn’t explicitly authorize the IWC to exempt these workers. The IWC also created a new wage board to review the minimum wage—which could be a precursor to a wage hike. Nominations for the board are due May 15, 2000.
- Outside salespeople. The IWC decided not to change the rules for the outside salesperson exemption.
Healthcare Industry Prepares For Changes
On April 14, 2000, in Oakland, members of the healthcare industry gathered to express their opinions to the IWC on how the daily overtime law will impact them. The healthcare industry has until July 1, 2000, to comply with the new daily overtime law. Although no action was taken, several proposals were made regarding alternative workweeks for the healthcare industry. One recommendation was to mandate that healthcare employers make scheduling accommodations for employees who vote against an alternative workweek schedule. The IWC also indicated that it might consider adding a provision to the wage orders covering healthcare workers that would prohibit employees from working over 12 hours in one workday. Finally, the IWC was asked to create a new exemption from overtime for advanced practitioner nurses. All of these issues will be discussed at future IWC meetings.
More Developments To Come
Further hearings have tentatively been scheduled for May 5, May 25, and June 30, 2000. Other details on the hearings haven’t yet been released.