With regret Western United Dairymen (WUD) informs our membership that Governor Jerry Brown announced today that he signed AB 1066 (Gonzalez) which will end the 10-hour work day, 60-hour (6-day) work week prior to paying overtime for agricultural occupations.This decision was accompanied with no signing message from the Governor and was reported in the press approximately 5 minutes after the bill alert announcing his intent to sign was published. WUD and many other agricultural organizations worked extremely hard to kill the legislation and subsequently to persuade the Governor to veto the bill. The bill was killed in its original introduction (as AB 2757) in the Assembly, then passed by 1 vote in the Senate and 3 votes in the Assembly during the last week of the legislative session in August. Compounding the impact the $15 minimum wage will have on the entire agricultural industry in the State, the industry lobbied heavily against the legislation because of the eventual effect it will have on the employees.
AB 1066 followed AB 2757 (Gonzalez) that was defeated in the Assembly in June after not securing the necessary 41 votes necessary to move the bill. Assemblywoman Gonzalez gut-and-amended an education bill she had in the Senate to revive the effort. With the Governor's signature, AB 1066 will become law January 1, 2017.
The bill's overtime provisions will be implemented beginning January 1, 2019 and culminate over a four-year period to reach 8-hours per day and 40-hours per week. Specifically, the new overtime provisions will require overtime be paid for work done in excess of:
- By July 1st, 2019: 9.5 Hour Work Day Max/55 Hour Work Week Max before paid time and a half; Employers with fewer than 25 employees have until 2022 to implement this provision
- By January 1st, 2020: 9 Hour Work Day Max/50 Hour Work Week Max before paid time and a half; Employers with fewer than 25 employees have until 2023 to implement this provision
- By January 1st, 2021: 8.5 Hour Work Day Max/45 Hour Work Week Max before paid time and a half; Employers with fewer than 25 employees have until 2024 to implement this provision
- By January 1st, 2022: 8 Hour Work Day Max/40 Hour Work Week Max before paid time and a half; Employers with fewer than 25 employees have until 2025 to implement this provision
- By January 1st, 2022: A 12 hour work day results in twice the regular rate of pay; Employers with fewer than 25 employees have until 2025 to implement this provision
- Between 2018 and 2025, the Governor has the option to suspend these overtime rules (and scheduled minimum wage increases) due to extraordinary economic conditions.
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9.15.2016
