New Overtime Provisions Signed by Governor

The Governor has now signed AB 1066 (Gonzales).  AB 1066, known as the Phase-In Overtime for Agricultural Workers Act of 2016, will make significant changes to the IWC’s Wage Order 14 covering all employees subject to the Wage Order 14.  Here are the important details.

Key Impacts & Changes –

  • Changes overtime triggers from 10 hours per day and 60 hours per week in a phased-in approach.
  • Removes exemption for irrigators, as irrigators are now subject to the new overtime provisions
  • Removes exemption for drivers, as regulated by the Federal DOT or CHP are now subject to the overtime provisions
  • Agricultural workers under Wage Order 14 were previously exempt from the mandatory 7th day off. Under this Act, agricultural workers must provide one day’s rest every seven days.
    • However, there is a provision that the one-day-of-rest requirement may be met by accumulating days of rest when the nature of the employment reasonably requires that the employee work seven or more consecutive days, provided that in each calendar month the employee receives days of rest equivalent to one day’s rest in seven.

Timeline –

The Act becomes effective on January 1, 2017, as per the following schedule:

Employers with more than 25 employees:

  • January 1, 2019: Overtime must be paid for work in excess of 9 ½ hours per workday or in excess of 55 hours per week.
  • January 1, 2020: Overtime must be paid for work in excess of 9 hours per workday or in excess of 50 hours per week.
  • January 1, 2021: Overtime must be paid for work in excess of 8 ½ hours per workday or in excess or 45 hours per week.
  • January 1, 2022: Overtime must be paid for work in excess of 8 hours per workday or in excess of 40 hours per week. Any work in excess of 12 hours in one day must be compensated at the rate of no less than twice the employee’s regular rate of pay.

Employers with 25 or fewer employees:

  • January 1, 2022: Overtime must be paid for work in excess of 9 ½ hours per workday or in excess of 55 hours per week.
  • January 1, 2023: Overtime must be paid for work done over 9 hours per workday or in excess of 50 hours per week.
  • January 1, 2024: Overtime must be paid for work in excess of 8 ½ hours per workday or in excess or 45 hours per week.
  • January 1, 2025: Overtime must be paid for work in excess of 8 hours per workday or in excess of 40 hours per week. Any work in excess of 12 hours in one day must be compensated at the rate of no less than twice the employee’s regular rate of pay.

A full legal summary will be posted on our website.