Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(Order No. 10-2001, Effective 1-1-2001, as amended.
Sections 4(A) and
10(C) amended and
republished by the Department of Industrial Relations, effective January 1,
2024, pursuant to SB 3, Chapter 4, Statutes of 2016 and section
1182.13 of the
Labor Code. Sections
1(A) amended and
republished pursuant to section
515.5(a)(4)
of the Labor Code. Section
1(J) is added to
the Labor Code pursuant to SB 332 (Ch. 866, Stats. 2023) effective October 13,
2023. Section
6 amended and republished to
conform to SB 639 (Ch. 339, Stats. 2021).)
TAKE NOTICE: To employers and representative of persons
working in industries and occupations in the State of California: The
Department of Industrial Relations amends and republished the minimum wage and
meals and lodging credits in the Industrial Welfare Commission's Orders as a
result of legislation enacted (SB 3, Ch. 4, Stats. 2016), and pursuant to
section
1182.13 of the
Labor Code. The department also amends the minimum rate for exempt computer
software employees in Section
1(A)(3)(h)(iv)
pursuant to section
515.5 of the
Labor Code. Also, this Order republishes requirements for licenses to employ
disabled workers in compliance with SB 639 (Ch. 339, Stats. 2021) amending
sections
1191 and
1191.5 of the
Labor Code, and further adds an exemption from certain protections for minor
league baseball players in compliance with SB 332 (Ch. 866, Stats. 2023),
enacting section
514.5 of the
Labor Code. The updates, amendments and republishing make no other changes to
this order.
1. Applicability of Order.
This order shall apply to all persons employed in the amusement and recreation
industry whether paid on a time, piece rate, commission, or other basis, except
that:
(A) Provisions of Sections
3 through
12 of this order shall not apply to
persons employed in administrative, executive, or professional capacities. The
following requirements shall apply in determining whether an employee's duties
meet the test to qualify for an exemption from those sections:
(1) Executive Exemption. A person employed in
an executive capacity means any employee:
(a)
Whose duties and responsibilities involve the management of the enterprise in
which they are employed or of a customarily recognized department or
subdivision thereof; and
(b) Who
customarily and regularly directs the work of two or more other employees
therein; and
(c) Who has the
authority to hire or fire other employees or whose suggestions and
recommendations as to the hiring or firing and as to the advancement and
promotion or any other change of status of other employees will be given
particular weight; and
(d) Who
customarily and regularly exercises discretion and independent judgment;
and
(e) Who is primarily engaged in
duties which meet the test of the exemption. The activities constituting exempt
work and non-exempt work shall be construed in the same manner as such items
are construed in the following regulations under the Fair Labor Standards Act
effective as of the date of this order:
29 C.F.R. Sections
541.102, 541.104-111, and 541.115-116. Exempt
work shall include, for example, all work that is directly and closely related
to exempt work and work which is properly viewed as a means for carrying out
exempt functions. The work actually performed by the employee during the course
of the workweek must, first and foremost, be examined and the amount of time
the employee spends on such work, together with the employer's realistic
expectations and the realistic requirements of the job, shall be considered in
determining whether the employee satisfies this requirement.
(f) Such an employee must also earn a monthly
salary equivalent to no less than two (2) times the state minimum wage for
full-time employment. Full-time employment is defined in Labor Code Section
515(c)
as 40 hours per week.
(2) Administrative Exemption. A person
employed in an administrative capacity means any employee:
(a) Whose duties and responsibilities involve
either:
(i) The performance of office or
non-manual work directly related to management policies or general business
operations of their employer or their employer's customers; or
(ii) The performance of functions in the
administration of a school system, or educational establishment or institution,
or of a department or subdivision thereof, in work directly related to the
academic instruction or training carried on therein; and
(b) Who customarily and regularly exercises
discretion and independent judgment; and
(c) Who regularly and directly assists a
proprietor, or an employee employed in a bona fide executive or administrative
capacity (as such terms are defined for purposes of this section); or
(d) Who performs under only general
supervision work along specialized or technical lines requiring special
training, experience, or knowledge; or
(e) Who executes under only general
supervision special assignments and tasks; and
(f) Who is primarily engaged in duties which
meet the test of the exemption. The activities constituting exempt work and
non-exempt work shall be construed in the same manner as such terms are
construed in the following regulations under the Fair Labor Standards Act
effective as of the date of this order: 29 C.F.R. Sections 541.201-205,
541.207-208, 541.210, and 541.215 . Exempt work shall include, for example, all
work that is directly and closely related to exempt work and work which is
properly viewed as a means for carrying out exempt functions. The work actually
performed by the employee during the course of the workweek must, first and
foremost, be examined and the amount of time the employee spends on such work,
together with the employer's realistic expectations and the realistic
requirements of the job, shall be considered in determining whether the
employee satisfies this requirement.
(g) Such employee must also earn a monthly
salary equivalent to no less than two (2) times the state minimum wage for
full-time employment. Full-time employment is defined in Labor Code Section
515(c)
as 40 hours per week.
(3) Professional Exemption. A person employed
in a professional capacity means any employee who meets
all of
the following requirements:
(a) Who is
licensed or certified by the State of California and is primarily engaged in
the practice of one of the following recognized professions: law, medicine,
dentistry, optometry, architecture, engineering, teaching, or accounting;
or
(b) Who is primarily engaged in
an occupation commonly recognized as a learned or artistic profession. For the
purposes of this subsection, "learned or artistic profession" means an employee
who is primarily engaged in the performance of:
(i) Work requiring knowledge of an advanced
type in a field of science or learning customarily acquired by a prolonged
course of specialized intellectual instruction and study, as distinguished from
a general academic education and from an apprenticeship, and from training in
the performance of routine mental, manual, or physical processes, or work that
is an essential part of or necessarily incident to any of the above work;
or
(ii) Work that is original and
creative in character in a recognized field of artistic endeavor (as opposed to
work which can be produced by a person endowed with general manual or
intellectual ability and training), and the result of which depends primarily
on the invention, imagination, or talent of the employee or work that is an
essential part of or necessarily incident to any of the above work;
and
(iii) Whose work is
predominantly intellectual and varied in character (as opposed to routine
mental, manual, mechanical, or physical work) and is of such character that the
output produced or the result accomplished cannot be standardized in relation
to a given period of time.
(c) Who customarily and regularly exercises
discretion and independent judgment in the performance of duties set forth in
subparagraphs (a) and (b).
(d) Who
earns a monthly salary equivalent to no less than two (2) times the state
minimum wage for full-time employment. Full-time employment is defined in Labor
Code Section
515(c)
as 40 hours per week.
(e)
Subparagraph (b) above is intended to be construed in accordance with the
following provisions of federal law as they existed as of the date of this wage
order: 29 C.F.R. Sections 541.207,
541.301(a)-(d),
541.302, 541.306, 541.307,
541.308, and 541.310.
(f)
Notwithstanding the provisions of this subparagraph, pharmacists employed to
engage in the practice of pharmacy, and registered nurses employed to engage in
the practice of nursing, shall not be considered exempt professional employees,
nor shall they be considered exempt from coverage for the purposes of this
subparagraph unless they individually meet the criteria established for
exemption as executive or administrative employees.
(g) Subparagraph (f) above shall not apply to
the following advanced practice nurses:
(i)
Certified nurse midwives who are primarily engaged in performing duties for
which certification is required pursuant to Article 2.5 (commencing with
Section
2746)
of Chapter 6 of Division 2 of the Business and Professions Code.
(ii) Certified nurse anesthetists who are
primarily engaged in performing duties for which certification is required
pursuant to Article 7 (commencing with Section
2825)
of Chapter 6 of Division 2 of the Business and Professions Code.
(iii) Certified nurse practitioners who are
primarily engaged in performing duties for which certification is required
pursuant to Article 8 (commencing with Section
2834)
of Chapter 6 of Division 2 of the Business and Professions Code.
(iv) Nothing in this subparagraph shall
exempt the occupations set forth in clauses (i), (ii), and (iii) from meeting
the requirements of subsection
1(A)(3)(a)-(d)
above.
(h) Except, as
provided in subparagraph (i), an employee in the computer software field who is
paid on an hourly basis shall be exempt, if
all of the
following apply:
(i) The employee is
primarily engaged in work that is intellectual or creative and requires the
exercise of discretion and independent judgment.
(ii) The employee is primarily engaged in
duties that consist of one or more of the following:
- The application of systems analysis techniques and
procedures, including consulting with users, to determine hardware, software,
or system functional specifications.
- The design, development, documentation, analysis,
creation, testing, or modification of computer systems or programs, including
prototypes, based on and related to user or system design
specifications.
- The documentation, testing, creation, or modification
of computer programs related to the design of software or hardware for computer
operating systems.
(iii)
The employee is highly skilled and is proficient in the theoretical and
practical application of highly specialized information to computer systems
analysis, programming, and software engineering. A job title shall not be
determinative of the applicability of this exemption.
(iv) The employee's hourly rate of pay is not
less than fifty-five dollars and fifty-eight cents ($55.58) effective January
1, 2024. The Office of the Director -- Research, Department of Industrial
Relations shall adjust this pay rate on October 1 of each year to be effective
on January 1 of the following year by an amount equal to the percentage
increase in the California Consumer Price Index for Urban Wage Earners and
Clerical Workers. [FN1]
(i) The exemption provided in subparagraph
(h) does not apply to an employee if
any of the following
apply:
(i) The employee is a trainee or
employee in an entry-level position who is learning to become proficient in the
theoretical and practical application of highly specialized information to
computer systems analysis, programming, and software engineering.
(ii) The employee is in a computer-related
occupation but has not attained the level of skill and expertise necessary to
work independently and without close supervision.
(iii) The employee is engaged in the
operation of computers or in the manufacture, repair, or maintenance of
computer hardware and related equipment.
(iv) The employee is an engineer, drafter,
machinist, or other professional whose work is highly dependent upon or
facilitated by the use of computers and computer software programs and who is
skilled in computer-aided design software, including CAD/CAM, but who is not in
a computer systems analysis or programming occupation.
(v) The employee is a writer engaged in
writing material, including box labels, product descriptions, documentation,
promotional material, setup and installation instructions, and other similar
written information, either for print or for on screen media or who writes or
provides content material intended to be read by customers, subscribers, or
visitors to computer-related media such as the World Wide Web or
CD-ROMs.
(vi) The employee is
engaged in any of the activities set forth in subparagraph (h)
for the purpose of creating imagery for effects used in the motion picture,
television, or theatrical industry.
(B) The provisions of this order shall apply
to all employees employed by any employer operating a business at a horse
racing facility, including stable employees. Stable employees include but are
not limited to grooms, hot walkers, exercise workers, and any other employees
engaged in the raising, feeding, or management of racehorses, employed by a
trainer at a racetrack or other non-farm training facility.
(C) Except as provided in Sections
1,
2,
4,
10, and
20, the provisions of this order
shall not apply to any employees directly employed by the State or any
political subdivision thereof, including any city, county, or special
district.
(D) The provisions of
this order shall not apply to outside salespersons.
(E) The provisions of this order shall not
apply to any individual who is the parent, spouse, child, or legally adopted
child of the employer.
(F) Except
as provided in Sections
1,
2,
4,
10, and
20, the provisions of this order
shall not apply to full-time carnival ride operators employed by traveling
carnivals.
(G) The provisions of
this order shall not apply to any individual participating in a national
service program, such as AmeriCorps, carried out using assistance provided
under Section
12571 of Title 42 of the United States Code.
(See Stats.
2000, ch. 365 amending
Labor Code Section
1171.)
(H) The provisions of this section are not
applicable to any crew member employed on a commercial passenger fishing boat
licensed pursuant to Article 5 (commencing with Section
7920)
of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code.
(I) Except as provided in Sections
1,
2,
4,
10, and
20, the provisions of this order
shall not apply to professional actors.
(J) Except as provided in Sections
1,
2,
8, and
13 to
22, inclusive, the provisions of
this order shall not apply to any person who is covered by a contract to play
baseball at the minor league level that meets the prerequisites set out at
Labor Code section
514.5(a).
2. Definitions.
(A) "Amusement and Recreation Industry" means
any industry, business, or establishment operated for the purpose of furnishing
entertainment or recreation to the public, including but not limited to
theaters, dance halls, bowling alleys, billiard parlors, skating rinks, riding
academies, racetracks, amusement parks, athletic fields, swimming pools,
gymnasiums, golf courses, tennis courts, carnivals, and wired music
studios.
(B) An "alternative
workweek schedule" means any regularly scheduled workweek requiring an employee
to work more than eight (8) hours in a 24-hour period.
(C) "Commission" means the Industrial Welfare
Commission of the State of California.
(D) "Division" means the Division of Labor
Standards Enforcement of the State of California.
(E) "Employ" means to engage, suffer, or
permit to work.
(F) "Employee"
means any person employed by an employer.
(G) "Employer" means any person as defined in
Section
18 of the Labor
Code, who directly or indirectly, or through an agent or any other person,
employs or exercises control over the wages, hours, or working conditions of
any person.
(H) "Hours worked"
means the time during which an employee is subject to the control of an
employer, and includes all the time the employee is suffered or permitted to
work, whether or not required to do so.
(I) "Minor" means, for the purpose of this
order, any person under the age of 18 years.
(J) "Outside salesperson" means any person,
18 years of age or over, who customarily and regularly works more than half the
working time away from the employer's place of business selling tangible or
intangible items or obtaining orders or contracts for products, services or use
of facilities.
(K) "Primarily" as
used in Section
1, Applicability, means more than
one-half the employee's work time.
(L) "Shift" means designated hours of work by
an employee, with a designated beginning time and quitting time.
(M) "Split shift" means a work schedule,
which is interrupted by non-paid non-working periods established by the
employer, other than bona fide rest or meal periods.
(N) "Teaching" means, for the purpose of
Section 1 of this order, the profession of
teaching under a certificate from the Commission for Teacher Preparation and
Licensing or teaching in an accredited college or university.
(O) "Wages" includes all amounts for labor
performed by employees of every description, whether the amount is fixed or
ascertained by the standard of time, task, piece, commission basis, or other
method of calculation.
(P)
"Workday" and "day" mean any consecutive 24-hour period beginning at the same
time each calendar day.
(Q)
"Workweek" and "week" mean any seven (7) consecutive days, starting with the
same calendar day each week. "Workweek" is a fixed and regularly recurring
period of 168 hours, seven (7) consecutive 24-hour periods.
3. Hours and Days of Work.
(A) Daily Overtime -- General Provisions.
(1) The following overtime provisions are
applicable to employees 18 years of age or over and to employees 16 or 17 years
of age who are not required by law to attend school and are not otherwise
prohibited by law from engaging in the subject work. Such employees shall not
be employed more than eight (8) hours in any workday or more than 40 hours in
any workweek unless the employee receives one and one-half (1 1/2) times
such employee's regular rate of pay for all hours worked over 40 hours in the
workweek. Eight (8) hours of labor constitutes a day's work. Employment beyond
eight (8) hours in any workday or more than six (6) days in any workweek is
permissible provided the employee is compensated for such overtime at not less
than:
(a) One and one-half (1 1/2) times
the employee's regular rate of pay for all hours worked in excess of eight (8)
hours up to and including 12 hours in any workday, and for the first eight (8)
hours worked on the seventh (7th) consecutive day of work in a workweek;
and
(b) Double the employee's
regular rate of pay for all hours worked in excess of 12 hours in any workday
and for all hours worked in excess of eight (8) hours on the seventh (7th)
consecutive day of work in a workweek.
(c) The overtime rate of compensation
required to be paid to a nonexempt full-time salaried employee shall be
computed by using the employee's regular hourly salary as one-fortieth
(1/40) of the employee's
weekly salary.
(B) Alternative Workweek Schedules.
(1) No employer shall be deemed to have
violated the daily overtime provisions by instituting, pursuant to the election
procedures set forth in this wage order, a regularly scheduled alternative
workweek schedule of not more than ten (10) hours per day within a 40 hour
workweek without the payment of an overtime rate of compensation. All work
performed in any workday beyond the schedule established by the agreement up to
12 hours a day or beyond 40 hours per week shall be paid at one and one-half (1
1/2) times the employee's regular rate of pay. All work performed in
excess of 12 hours per day and any work in excess of eight (8) hours on those
days worked beyond the regularly scheduled number of workdays established by
the alternative workweek agreement shall be paid at double the employee's
regular rate of pay. Any alternative workweek agreement adopted pursuant to
this section shall provide for not less than four (4) hours of work in any
shift. Nothing in this section shall prohibit an employer, at the request of
the employee, to substitute one day of work for another day of the same length
in the shift provided by the alternative workweek agreement on an occasional
basis to meet the personal needs of the employee without the payment of
overtime. No hours paid at either one and one-half (1 1/2) or double the
regular rate of pay shall be included in determining when 40 hours have been
worked for the purpose of computing overtime compensation.
(2) If an employer whose employees have
adopted an alternative workweek agreement permitted by this order requires an
employee to work fewer hours than those that are regularly scheduled by the
agreement, the employer shall pay the employee overtime compensation at a rate
of one and one-half (1 1/2) times the employee's regular rate of pay for
all hours worked in excess of eight (8) hours, and double the employee's
regular rate of pay for all hours worked in excess of 12 hours for the day the
employee is required to work the reduced hours.
(3) An employer shall not reduce an
employee's regular rate of hourly pay as a result of the adoption, repeal or
nullification of an alternative workweek schedule.
(4) An employer shall explore any available
reasonable alternative means of accommodating the religious belief or
observance of an affected employee that conflicts with an adopted alternative
workweek schedule, in the manner provided by subdivision (j) of Section
12940 of
the Government Code.
(5) An
employer shall make a reasonable effort to find a work schedule not to exceed
eight (8) hours in a workday, in order to accommodate any affected employee who
was eligible to vote in an election authorized by this section and who is
unable to work the alternative workweek schedule established as the result of
that election.
(6) An employer
shall be permitted, but not required, to provide a work schedule not to exceed
eight (8) hours in a workday to accommodate any employee who is hired after the
date of the election and who is unable to work the alternative workweek
schedule established by the election.
(7) Arrangements adopted in a secret ballot
election held pursuant to this order prior to 1998, or under the rules in
effect prior to 1998, and before the performance of the work, shall remain
valid after July 1, 2000 provided that the results of the election are reported
by the employer to the Division of Labor Statistics and Research by January 1,
2001, in accordance with the requirements of subsection (C) below (Election
Procedures). If an employee was voluntarily working an alternative workweek
schedule of not more than ten (10) hours a day as of July 1, 1999, that
alternative workweek schedule was based on an individual agreement made after
January 1, 1998 between the employee and employer, and the employee submitted,
and the employer approved, a written request on or before May 30, 2000 to
continue the agreement, the employee may continue to work that alternative
workweek schedule without payment of an overtime rate of compensation for the
hours provided in the agreement. The employee may revoke their voluntary
authorization to continue such a schedule with 30 days written notice to the
employer. New arrangements can only be entered into pursuant to the provisions
of this section.
(C)
Election Procedures.
Election procedures for the adoption and repeal of
alternative workweek schedules require the following:
(1) Each proposal for an alternative workweek
schedule shall be in the form of a written agreement proposed by the employer.
The proposed agreement must designate a regularly scheduled alternative
workweek in which the specified number of work days and work hours are
regularly recurring. The actual days worked within that alternative workweek
schedule need not be specified. The employer may propose a single work schedule
that would become the standard schedule for workers in the work unit, or a menu
of work schedule options, from which each employee in the unit would be
entitled to choose. If the employer proposes a menu of work schedule options,
the employee may, with the approval of the employer, move from one menu option
to another.
(2) In order to be
valid, the proposed alternative workweek schedule must be adopted in a secret
ballot election, before the performance of work, by at least a two-thirds
(2/3) vote of the affected
employees in the work unit. The election shall be held during regular working
hours at the employees' work site. For purposes of this subsection, "affected
employees in the work unit" may include all employees in a readily identifiable
work unit, such as a division, a department, a job classification, a shift, a
separate physical location, or a recognized subdivision of any such work unit.
A work unit may consist of an individual employee as long as the criteria for
an identifiable work unit in this subsection are met.
(3) Prior to the secret ballot vote, any
employer who proposed to institute an alternative workweek schedule shall have
made a disclosure in writing to the affected employees, including the effects
of the proposed arrangement on the employees' wages, hours, and benefits. Such
a disclosure shall include meeting(s), duly noticed, held at least 14 days
prior to voting, for the specific purpose of discussing the effects of the
alternative workweek schedule. An employer shall provide that disclosure in a
non-English language, as well as in English, if at least five (5) percent of
the affected employees primarily speak that non-English language. The employer
shall mail the written disclosure to employees who do not attend the meeting.
Failure to comply with this paragraph shall make the election null and
void.
(4) Any election to establish
or repeal an alternative workweek schedule shall be held at the work site of
the affected employees. The employer shall bear the costs of conducting any
election held pursuant to this section. Upon a complaint by an affected
employee, and after an investigation by the Labor Commissioner, the Labor
Commissioner may require the employer to select a neutral third party to
conduct the election.
(5) Any type
of alternative workweek schedule that is authorized by the Labor Code may be
repealed by the affected employees. Upon a petition of one-third (1/3) of the
affected employees, a new secret ballot election shall be held and a two-thirds
(2/3) vote of the affected
employees shall be required to reverse the alternative workweek schedule. The
election to repeal the alternative workweek schedule shall be held not more
than 30 days after the petition is submitted to the employer, except that the
election shall be held not less than 12 months after the date that the same
group of employees voted in an election held to adopt or repeal an alternative
workweek schedule. The election shall take place during regular working hours
at the employees' work site. If the alternative workweek schedule is revoked,
the employer shall comply within 60 days. Upon proper showing of undue
hardship, the Division of Labor Standards Enforcement may grant an extension of
time for compliance.
(6) Only
secret ballots may be cast by affected employees in the work unit at any
election held pursuant to this section. The results of any election conducted
pursuant to this section shall be reported by the employer to the Office of the
Director -- Research, Department of Industrial Relations within 30 days after
the results are final, and the report of election results shall be a public
document. The report shall include the final tally of the vote, the size of the
unit, and the nature of the business of the employer.
(7) Employees affected by a change in the
work hours resulting from the adoption of an alternative workweek schedule may
not be required to work those new work hours for at least 30 days after the
announcement of the final results of the election.
(8) Employers shall not intimidate or coerce
employees to vote either in support of or in opposition to a proposed
alternative workweek. No employees shall be discharged or discriminated against
for expressing opinions concerning the alternative workweek election or for
opposing or supporting its adoption or repeal. However, nothing in this section
shall prohibit an employer from expressing their position concerning that
alternative workweek to the affected employees. A violation of this paragraph
shall be subject to Labor Code Section
98et
seq.
(D) One
and one-half (1 1/2) times a minor's regular rate of pay shall be paid for
all work over 40 hours in any workweek except minors 16 or 17 years old who are
not required by law to attend school and may therefore be employed for the same
hours as an adult are subject to subsection (A) or (B) and (C) above.
(VIOLATIONS OF CHILD LABOR LAWS are subject to
civil penalties of from $500 to $10,000 as well as to criminal penalties. Refer
to Labor Code Sections
1285 to
1312 and
1390 to
1399 for
additional restrictions on the employment of minors and for descriptions of
criminal and civil penalties for violation of the child labor laws. Employers
should ask school districts about any required work permits.)
(E) An employee may be employed on
seven (7) workdays in one workweek when the total hours of employment during
such workweek do not exceed 30 and the total hours of employment in any one
workday thereof do not exceed six (6).
(F) If a meal period occurs on a shift
beginning or ending at or between the hours of 10 p.m. and 6 a.m., facilities
shall be available for securing hot food and drink or for heating food or
drink, and a suitable sheltered place shall be provided in which to consume
such food or drink.
(G) The
provisions of this section shall not apply to employees whose duties are
exclusively those of a motion picture projectionist.
(H) The provisions of Labor Code Sections
551 and
552 regarding
one (1) day's rest in seven (7) shall not be construed to prevent an
accumulation of days of rest when the nature of the employment reasonably
requires the employee to work seven (7) or more consecutive days; provided,
however, that in each calendar month, the employee shall receive the equivalent
of one (1) day's rest in seven (7).
(I) Except as provided in subsections (D) and
(H), this section shall not apply to any employee covered by a valid collective
bargaining agreement if the agreement expressly provides for the wages, hours
of work, and working conditions of the employees, and if the agreement provides
premium wage rates for all overtime hours worked and a regular hourly rate of
pay for those employees of not less than 30 percent more than the state minimum
wage.
(J) Notwithstanding
subsection (I) above, where the employer and a labor organization representing
employees of the employer have entered into a valid collective bargaining
agreement pertaining to the hours of work of the employees, the requirement
regarding the equivalent of one (1) day's rest in seven (7) (see subsection (H)
above) shall apply, unless the agreement expressly provides
otherwise.
(K) No employer who
operates a ski establishment shall be in violation of this order by instituting
a regularly scheduled workweek of not more than 48 hours during any month of
the year when Alpine or Nordic skiing activities, including snowmaking and
grooming activities, are actually being conducted by the ski establishment;
provided, however, that any employee shall be compensated at a rate of not less
than one and one-half (1 1/2) times the employee's regular rate of pay for
any hours worked in excess of ten (10) hours work in a day or 48 hours in a
workweek. For purposes of this section, "ski establishment" means an
integrated, geographically limited recreational industry which is comprised of
basic skiing facilities, together with all operations and facilities related
thereto.
(L) The provisions of this
section are not applicable to employees whose hours of service are regulated
by:
(1) The United States Department of
Transportation Code of Federal Regulations, Title 49, Sections 395.1 to 395.13,
Hours of Service of Drivers; or
(2)
Title 13 of the California Code of Regulations, subchapter 6.5, Section
1200 and the following sections,
regulating hours of drivers.
(M) If an employer approves a written request
of an employee to make up work time that is or would be lost as a result of a
personal obligation of the employee, the hours of that makeup work time, if
performed in the same workweek in which the work time was lost, may not be
counted toward computing the total number of hours worked in a day for purposes
of the overtime requirements, except for hours in excess of 11 hours of work in
one (1) day or 40 hours of work in one (1) workweek. If an employee knows in
advance that they will be requesting makeup time for a personal obligation that
will recur at a fixed time over a succession of weeks, the employee may request
to make up work time for up to four (4) weeks in advance; provided, however,
that the makeup work must be performed in the same week that the work time was
lost. An employee shall provide a signed written request for each occasion that
the employee makes a request to make up work time pursuant to this subsection.
While an employer may inform an employee of this make up time option, the
employer is prohibited from encouraging or otherwise soliciting an employee to
request the employer's approval to take personal time off and make up the work
hours within the same workweek pursuant to this subsection.
(N) The provisions of this section are not
applicable to any crew member employed on a commercial passenger fishing boat
licensed pursuant to Article 5 (commencing with Section
7920)
of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code.
4. Minimum Wages.
(A) Every employer shall pay to each employee
wages not less than the following:
(1) All
employers, regardless of the number of employees, shall pay to each employee:
(a) Sixteen dollars ($16) per hour for all
hours worked, effective January 1, 2024.
(b) Fifteen dollars and fifty cents ($15.50)
per hour for all hours worked, effective January 1, 2023.
(2) Prior to January 1, 2023, any employer
who employs 26 or more employees shall pay to each employee wages not less than
the following:
(a) Fifteen dollars ($15.00)
per hour for all hours worked, effective January 1, 2022.
(b) Fourteen dollars ($14.00) per hour for
all hours worked, effective January 1, 2021.
(3) Prior to January 1, 2023, any employer
who employs 25 or fewer employees shall pay to each employee wages not less
than the following:
(a) Fourteen dollars
($14.00) per hour for all hours worked, effective January 1, 2022.
(b) Thirteen dollars ($13.00) per hour for
all hours worked, effective January 1, 2021.
Employees treated as employed by a single qualified
taxpayer pursuant to Revenue and Taxation Code section
23626
are treated as employees of that single taxpayer.
LEARNERS: Employees during their first 160 hours of
employment in occupations in which they have no previous similar or related
experience, may be paid not less than 85 percent of the minimum wage rounded to
the nearest nickel.
(B) Every employer shall pay to each
employee, on the established payday for the period involved, not less than the
applicable minimum wage for all hours worked in the payroll period, whether the
remuneration is measured by time, piece, commission, or otherwise.
(C) When an employee works a split shift, one
(1) hour's pay at the minimum wage shall be paid in addition to the minimum
wage for that workday, except when the employee resides at the place of
employment.
(D) The provisions of
this section shall not apply to apprentices regularly indentured under the
State Division of Apprenticeship Standards.
(E) If the employee is a crew member employed
on a commercial passenger fishing boat licensed pursuant to Article 5
(commencing with Section
7920)
of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code, the minimum
wage obligation of this section may, at the employer's option, be satisfied by
paying employees according to the following formula:
(1) A "one-half day trip" shall be comprised
of a maximum of six (6) hours of work compensated at a rate of no less than six
(6) times the hourly minimum wage.
(2) A "three-quarter day trip" shall be
comprised of a maximum of ten (10) hours of work compensated at a rate of no
less than ten (10) times the hourly minimum wage.
(3) A "full-day trip" shall be comprised of a
maximum of 12 hours of work compensated at a rate of no less than 12 times the
hourly minimum wage.
(4) An
"overnight trip" shall be comprised of a maximum of 12 hours worked within a
period of no less than 24 hours compensated at a rate of no less than 12 times
the hourly minimum wage.
Nothing in this subsection relieves the employer of the
obligation to pay employees no less than the minimum wage for all hours
worked.
5. Reporting Time Pay.
(A) Each workday an employee is required to
report for work and does report, but is not put to work or is furnished less
than half said employee's usual or scheduled day's work, the employee shall be
paid for half the usual or scheduled day's work, but in no event for less than
two (2) hours nor more than four (4) hours, at the employee's regular rate of
pay, which shall not be less than the minimum wage.
(B) If an employee is required to report for
work a second time in any one workday and is furnished less than two (2) hours
of work on the second reporting, said employee shall be paid for two (2) hours
at the employee's regular rate of pay, which shall not be less than the minimum
wage.
(C) The foregoing reporting
time pay provisions are not applicable when:
(1) Operations cannot commence or continue
due to threats to employees or property; or when recommended by civil
authorities; or
(2) Public
utilities fail to supply electricity, water, or gas, or there is a failure in
the public utilities, or sewer system; or
(3) The interruption of work is caused by an
Act of God or other cause not within the employer's control.
(D) This section shall not apply
to an employee on paid standby status who is called to perform assigned work at
a time other than the employee's scheduled reporting time.
6. License for Disabled Workers.
(A) An existing license may be renewed by the
Division authorizing employment of a person whose earning capacity is impaired
by physical disability or mental deficiency at less than the minimum wage
pursuant to the requirements in Labor Code section
1191(a).
Such licenses shall be granted only upon joint application of employer and
employee and employee's representative if any. This subsection is operative
only until January 1, 2025, or until the phase-out plan described in Labor Code
section
1191(c)
is released, whichever is later.
(B) A special license may be issued to a
nonprofit organization such as a sheltered workshop or rehabilitation facility
fixing special minimum rates to enable the employment of such persons without
requiring individual licenses of such employees. This subsection is operative
only until January 1, 2025.
(C) All
such licenses and special licenses shall be renewed on a yearly basis or more
frequently at the discretion of the Division.
(See Labor Code, Sections
1191 and
1191.5)
7. Records.
(A) Every employer shall keep accurate
information with respect to each employee including the following:
(1) Full name, home address, occupation and
social security number.
(2) Birth
date, if under 18 years, and designation as a minor.
(3) Time records showing when the employee
begins and ends each work period. Meal periods, split shift intervals and total
daily hours worked shall also be recorded. Meal periods during which operations
cease and authorized rest periods need not be recorded.
(4) Total wages paid each payroll period,
including value of board, lodging, or other compensation actually furnished to
the employee.
(5) Total hours
worked in the payroll period and applicable rates of pay. This information
shall be made readily available to the employee upon reasonable
request.
(6) When a piece rate or
incentive plan is in operation, piece rates or an explanation of the incentive
plan formula shall be provided to employees. An accurate production record
shall be maintained by the employer.
(B) Every employer shall semimonthly or at
the time of each payment of wages furnish each employee, either as a detachable
part of the check, draft, or voucher paying the employees wages, or separately,
an itemized statement in writing showing:
(1)
all deductions;
(2) the inclusive
dates of the period for which the employee is paid;
(3) the name of the employee or the employees
social security number; and
(4) the
name of the employer, provided all deductions made on written orders of the
employee may be aggregated and shown as one item.
(C) All required records shall be in the
English language and in ink or other indelible form, properly dated, showing
month, day and year, and shall be kept on file by the employer for at least
three years at the place of employment or at a central location within the
State of California. An employee's records shall be available for inspection by
the employee upon reasonable request.
(D) Clocks shall be provided in all major
work areas or within reasonable distance thereto insofar as
practicable.
(E) If the employee is
a crew member employed on a commercial passenger fishing boat licensed pursuant
to Article 5 (commencing with Section
7920)
of Chapter 1 of Part 3 of Division 6 of the Fish and Game Code, the provisions
of Sections
3, Hours and Days of Work, and 5,
Reporting Time Pay may, at the employer's option, be satisfied by expressing
the hours worked in terms of the formula established pursuant to Section
4(E). Hours worked
in excess of the formula in Section
4(E) shall be
recorded on the employee's pay record as additional hours worked.
8. Cash Shortage and Breakage.
No employer shall make any deduction from the wage or
require any reimbursement from an employee for any cash shortage, breakage, or
loss of equipment, unless it can be shown that the shortage, breakage, or loss
is caused by a dishonest or willful act, or by the gross negligence of the
employee.
9. Uniforms and
Equipment.
(A) When uniforms are required by
the employer to be worn by the employee as a condition of employment, such
uniforms shall be provided and maintained by the employer. The term "uniform"
includes wearing apparel and accessories of distinctive design or color.
Note: This section shall not apply to protective apparel
regulated by the Occupational Safety and Health Standards Board.
(B) When tools or equipment are
required by the employer or are necessary to the performance of a job, such
tools and equipment shall be provided and maintained by the employer, except
that an employee whose wages are at least two (2) times the minimum wage
provided herein may be required to provide and maintain hand tools and
equipment customarily required by the trade or craft. This subsection (B) shall
not apply to apprentices regularly indentured under the State Division of
Apprenticeship Standards.
Note: This section shall not apply to protective
equipment and safety devices on tools regulated by the Occupational Safety and
Health Standards Board.
(C)
A reasonable deposit may be required as security for the return of the items
furnished by the employer under provisions of subsections (A) and (B) of this
section upon issuance of a receipt to the employee for such deposit. Such
deposits shall be made pursuant to Section 400 and following of the Labor Code
or an employer with the prior written authorization of the employee may deduct
from the employee's last check the cost of an item furnished pursuant to (A)
and (B) above in the event said item is not returned. No deduction shall be
made at any time for normal wear and tear. All items furnished by the employer
shall be returned by the employee upon completion of the job.
10. Meals and Lodging.
(A) "Meal" means an adequate, well-balanced
serving of a variety of wholesome, nutritious foods.
(B) "Lodging" means living accommodations
available to the employee for full-time occupancy which are adequate, decent,
and sanitary according to usual and customary standards. Employees shall not be
required to share a bed.
(C) Meals
or lodging may not be credited against the minimum wage without a voluntary
written agreement between the employer and the employee. When credit for meals
or lodging is used to meet part of the employer's minimum wage obligation, the
amounts so credited may not be more than the following:
EFFECTIVE:
|
JANUARY 1,
2021 |
JANUARY 1,
2022 |
January 1,
2023 |
January 1,
2024 |
For an employer who
employs: |
26 or More
Employees |
25 or Fewer
Employees
|
26 or More
Employees |
26 or Fewer
Employees
|
All Employers
regardless of number of Employees |
All Employers
regardless of number of Employees |
LODGING: |
|
|
|
|
|
|
Room occupied alone |
$65.83/week |
$61.13/week |
$70.53/week |
$65.83/week |
$72.88/week |
$75.23/week |
Room shared |
$54.34/week |
$50.46/week |
$58.22 week |
$54.34 week |
$60.16/week |
$62.10/week |
Apartment -- two thirds (2/3) of the ordinary
rental value, and in no event more than: |
$790.67/month |
$734.21/month |
$847.12/month |
$790.67/month |
$875.33/month |
$903.60/month |
Where a couple are both employed by the employer,
two thirds (2/3) of the ordinary rental value, and in no event more
than: |
$1169.59/month |
$1086.07/month |
$1253.10/month |
$1169.59/month |
$1294.83/month |
$1336.65/month |
MEALS: |
|
|
|
|
|
|
Breakfast |
$5.06 |
$4.70 |
$5.42 |
$5.06 |
$5.60 |
$5.78 |
Lunch |
$6.97 |
$6.47 |
$7.47 |
$6.97 |
$7.72 |
$7.97 |
Dinner |
$9.35 |
$8.68 |
$10.02 |
$9.35 |
$10.35 |
$10.68 |
(D) Meals evaluated as part of the minimum
wage must be bona fide meals consistent with the employee's work shift.
Deductions shall not be made for meals not received or lodging not
used.
(E) If, as a condition of
employment, the employee must live at the place of employment or occupy
quarters owned or under the control of the employer, then the employer may not
charge rent in excess of the values listed herein.
11. Meal Periods.
(A) No employer shall employ any person for a
work period of more than five (5) hours without a meal period of not less than
30 minutes, except that when a work period of not more than six (6) hours will
complete the day's work the meal period may be waived by mutual consent of the
employer and the employee.
(B) An
employer may not employ an employee for a work period of more than ten (10)
hours per day without providing the employee with a second meal period of not
less than 30 minutes, except that if the total hours worked is no more than 12
hours, the second meal period may be waived by mutual consent of the employer
and the employee only if the first meal period was not waived.
(C) Unless the employee is relieved of all
duty during a 30 minute meal period, the meal period shall be considered an "on
duty" meal period and counted as time worked. An "on duty" meal period shall be
permitted only when the nature of the work prevents an employee from being
relieved of all duty and when by written agreement between the parties an
on-the-job paid meal period is agreed to. The written agreement shall state
that the employee may, in writing, revoke the agreement at any time.
(D) If an employer fails to provide an
employee a meal period in accordance with the applicable provisions of this
order, the employer shall pay the employee one (1) hour of pay at the
employee's regular rate of compensation for each workday that the meal period
is not provided.
(E) In all places
of employment where employees are required to eat on the premises, a suitable
place for that purpose shall be designated.
12. Rest Periods.
(A) Every employer shall authorize and permit
all employees to take rest periods, which insofar as practicable shall be in
the middle of each work period. The authorized rest period time shall be based
on the total hours worked daily at the rate of ten (10) minutes net rest time
per four (4) hours or major fraction thereof. However, a rest period need not
be authorized for employees whose total daily work time is less than three and
one-half (3 1/2) hours. Authorized rest period time shall be counted as
hours worked for which there shall be no deduction from wages.
(B) If an employer fails to provide an
employee a rest period in accordance with the applicable provisions of this
order, the employer shall pay the employee one (1) hour of pay at the
employee's regular rate of compensation for each workday that the rest period
is not provided.
(C) A crew member
employed on a commercial passenger fishing boat who is on an overnight trip
within the meaning of Section
4(E) shall receive
no less than eight (8) hours off-duty time during each 24-hour
period.
13. Change Rooms
and Resting Facilities.
(A) Employers shall
provide suitable lockers, closets, or equivalent for the safekeeping of
employees' outer clothing during working hours, and when required, for their
work clothing during non-working hours. When the occupation requires a change
of clothing, change rooms or equivalent space shall be provided in order that
employees may change their clothing in reasonable privacy and comfort. These
rooms or spaces may be adjacent to but shall be separate from toilet rooms and
shall be kept clean.
Note: This section shall not apply to change rooms and
storage facilities regulated by the Occupational Safety and Health Standards
Board.
(B) Suitable resting
facilities shall be provided in an area separate from the toilet rooms and
shall be available to employees during work hours.
14. Seats.
(A) All working employees shall be provided
with suitable seats when the nature of the work reasonably permits the use of
seats.
(B) When employees are not
engaged in the active duties of their employment and the nature of the work
requires standing, an adequate number of suitable seats shall be placed in
reasonable proximity to the work area and employees shall be permitted to use
such seats when it does not interfere with the performance of their
duties.
15. Temperature.
(A) The temperature maintained in each work
area shall provide reasonable comfort consistent with industry-wide standards
for the nature of the process and the work performed.
(B) If excessive heat or humidity is created
by the work process, the employer shall take all feasible means to reduce such
excessive heat or humidity to a degree providing reasonable comfort. Where the
nature of the employment requires a temperature of less than 60°F., a
heated room shall be provided to which employees may retire for warmth, and
such room shall be maintained at not less than 68°.
(C) A temperature of not less than 68°
shall be maintained in the toilet rooms, resting rooms, and change rooms during
hours of use.
(D) Federal and State
energy guidelines shall prevail over any conflicting provision of this
section.
16. Elevators.
Adequate elevator, escalator or similar service
consistent with industry-wide standards for the nature of the process and the
work performed shall be provided when employees are employed four floors or
more above or below ground level.
17. Exemptions.
If, in the opinion of the Division after due
investigation, it is found that the enforcement of any provision contained in
Section 7, Records; Section
12, Rest Periods; Section
13, Change Rooms and Resting
Facilities; Section
14, Seats; Section
15, Temperature; or Section
16, Elevators, would not materially
affect the welfare or comfort of employees and would work an undue hardship on
the employer, exemption may be made at the discretion of the Division. Such
exemptions shall be in writing to be effective and may be revoked after
reasonable notice is given in writing. Application for exemption shall be made
by the employer or by the employee and/or the employee's representative to the
Division in writing. A copy of the application shall be posted at the place of
employment at the time the application is filed with the Division.
18. Filing Reports. (See Labor
Code, Section
1174(a))
19. Inspection. (See Labor Code, Section
1174)
20. Penalties. (See Labor Code, Section
1199)
(A) In addition to any other civil penalties
provided by law, any employer or any other person acting on behalf of the
employer who violates, or causes to be violated, the provisions of this order,
shall be subject to the civil penalty of:
(1)
Initial Violation -- $50.00 for each underpaid employee for each pay period
during which the employee was underpaid in addition to the amount which is
sufficient to recover unpaid wages.
(2) Subsequent Violations -- $100.00 for each
underpaid employee for each pay period during which the employee was underpaid
in addition to an amount which is sufficient to recover unpaid wages.
(3) The affected employee shall receive
payment of all wages recovered.
(B) The Labor Commissioner may also issue
citations pursuant to Labor Code Section
1197.1 for
non-payment of wages for overtime work in violation of this order.
21. Separability.
If the application of any provision of this order, or any
section, subsection, subdivision, sentence, clause, phrase, word, or portion of
this order should be held invalid or unconstitutional or unauthorized or
prohibited by statute, the remaining provisions thereof shall not be affected
thereby, but shall continue to be given full force and effect as if the part so
held invalid or unconstitutional had not been included herein.
22. Posting of Order.
Every employer shall keep a copy of this order posted in
an area frequented by employees where it may be easily read during the workday.
Where the location of work or other conditions make this impractical, every
employer shall keep a copy of this order and make it available to every
employee upon request.
Note: Authority cited: Sections
514.5,
1173 and
1182.13, Labor
Code; and California Constitution, Article XIV, Section
1. Reference: Sections
515.5,
514.5,
1182,
1182.12,
1184,
1191 and
1191.5, Labor
Code.
Note: Authority cited: Section
1173, Labor
Code; and California Constitution, Article XIV, Section
1. Reference: Sections
1182 and
1184, Labor
Code.