California: Overtime Pay Regulations Expanded for Agricultural Employees

APPLIES TO

All Employers with California Employees in Agricultural Industries

EFFECTIVE

Varies; see below

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On September 12, 2016, Governor Brown signed AB 1066, a bill that will significantly expand overtime rights for California employees in the agricultural industry.  Currently, agricultural employees do not earn overtime until they complete over 10 hours of work in one day.  Beginning January 1, 2019, AB 1066 will lower the 10-hour threshold for overtime rates by a half-hour each year, reaching alignment with the standard eight-hour workday by 2022. The bill also phases in a 40-hour standard workweek. Further, as of January 1, 2022, any agricultural employee working in excess of 12 hours in one day must be compensated at a rate of twice their regular pay.

In addition, current regulations for meal and rest breaks, make up work, alternative work weeks and similar labor regulations will apply to agricultural workers beginning January 1, 2017.

The phase-in schedule will have a delayed implementation for employers of 25 or fewer employees, beginning January 1, 2022 and ending January 1, 2025 at the eight-hour threshold.

The governor will have the ability to suspend this gradual phase in any time for a year, depending on economic conditions.  The Department of Industrial Relations will also update Wage Order No. 14-2001 to be consistent with the bill.

Action Items

  • Contact ManagEase at (888) 230-3231 for assistance in reviewing current handbook policies and procedures for overtime calculation and meal and rest breaks, or drafting and implementation of new policies.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2016 ManagEase, Incorporated.

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