BILL NUMBER: AB 2536 ENROLLED BILL TEXT PASSED THE ASSEMBLY AUGUST 28, 2006 PASSED THE SENATE AUGUST 23, 2006 AMENDED IN SENATE AUGUST 21, 2006 AMENDED IN SENATE AUGUST 7, 2006 AMENDED IN SENATE JUNE 26, 2006 AMENDED IN ASSEMBLY MAY 15, 2006 AMENDED IN ASSEMBLY APRIL 26, 2006 INTRODUCED BY Assembly Member Montanez FEBRUARY 23, 2006 An act to amend Sections 500 and 510 of, and to add Section 1194.3 to, the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGEST AB 2536, Montanez Employment: minimum wage and overtime compensation. Existing law, with certain exceptions, establishes 8 hours as a day's work and a 40-hour workweek, and requires payment of prescribed overtime compensation for additional hours worked. A violation of this provision is a misdemeanor. This bill would provide that these overtime compensation requirements shall apply, with certain exceptions, to a personal attendant, as defined. By imposing additional requirements on employers, the violation of which would be a misdemeanor, the bill would impose a state-mandated local program. Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law authorizes an employee to recover in a civil action any unpaid balance of the full amount of minimum wages or overtime compensation. Existing law authorizes the Department of Industrial Relations and the Division of Labor Standards Enforcement, with or without the consent of an affected employee, to commence and prosecute a civil action to recover unpaid minimum wages or unpaid overtime compensation. Existing law entitles an employee, in any action under these provisions to recover unpaid wages received less than the minimum wage, to recover liquidated damages in an amount equal to the wages unlawfully unpaid and interest on that amount. Existing law expressly provides that this provision does not authorize recovery of liquidated damages for failure to pay overtime compensation. This bill would entitle a household worker, as defined, in any action to recover unlawfully withheld wages or unpaid overtime compensation under any of these provisions, to recover liquidated damages in an amount equal to the unlawfully withheld wages or unpaid overtime compensation plus interest on that amount. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 500 of the Labor Code is amended to read: 500. For purposes of this chapter, the following terms shall have the following meanings: (a) "Workday" and "day" mean any consecutive 24-hour period commencing at the same time each calendar day. (b) "Workweek" and "week" mean any seven consecutive days, starting with the same calendar day each week. "Workweek" is a fixed and regularly recurring period of 168 hours, seven consecutive 24-hour periods. (c) "Alternative workweek schedule" means any regularly scheduled workweek requiring an employee to work more than eight hours in a 24-hour period. (d) "Personal attendant" means a babysitter, or any person employed and paid by a private household or by a private third-party employer to work in a private household to supervise, feed, or dress a child or a person who by reason of advanced age, physical disability, or mental disability needs supervision. The status of personal attendant applies if no significant amount of work other than that described in this subdivision is required. "Personal attendant" does not include persons receiving payment for providing services under Article 7 (commencing with Section 12300) of Chapter 3 of, or under Article 4 (commencing with Section 14131) of Chapter 7 of, Part 3 of Division 9 of the Welfare and Institutions Code. (e) "Live-in household employee" means any person employed and paid by a private household or by a private third-party employer to work in a private household and who lives in the private household as a condition of employment. "Live-in household employee" does not include persons receiving payment for providing services under Article 7 (commencing with Section 12300) of Chapter 3 of, or under Article 4 (commencing with Section 14131) of Chapter 7 of, Part 3 of Division 9 of the Welfare and Institutions Code. SEC. 2. Section 510 of the Labor Code is amended to read: 510. (a) Eight hours of labor constitutes a day's work. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than 11/2 times the regular rate of pay for an employee. Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the regular rate of pay for an employee. In addition, any work in excess of eight hours on any seventh day of a workweek shall be compensated at the rate of no less than twice the regular rate of pay of an employee. Nothing in this section requires an employer to combine more than one rate of overtime compensation in order to calculate the amount to be paid to an employee for any hour of overtime work. This section does not apply to the payment of overtime compensation to an employee working pursuant to any of the following: (1) An alternative workweek schedule adopted pursuant to Section 511. (2) An alternative workweek schedule adopted pursuant to a collective bargaining agreement pursuant to Section 514. (3) An alternative workweek schedule to which this chapter is inapplicable pursuant to Section 554. (b) Time spent commuting to and from the first place at which an employee's presence is required by the employer shall not be considered to be a part of a day's work, when the employee commutes in a vehicle that is owned, leased, or subsidized by the employer and is used for the purpose of ridesharing, as defined in Section 522 of the Vehicle Code. (c) (1) Except as provided in paragraphs (2) and (3), this section applies to a personal attendant, as that term is defined in Section 500. However, a live-in household employee who is also a personal attendant shall be compensated in accordance with Section 3(A) of Industrial Welfare Commission Wage Order 15. (2) This section does not apply to a person under 18 years of age who is employed as a babysitter for a minor child of the employer in the employer's household and who may be declared a dependent pursuant to Section 152(a) of the Internal Revenue Code. (3) This section does not apply to a personal attendant who is a person employed by a private household, or by a third-party employer, to work in a private household to supervise, feed, or dress a person who, by reason of advanced age, physical disability, or mental disability, needs supervision. (4) This section does not apply to an employee with direct responsibility for a child who is under 18 years of age or who is not emancipated from the foster care system and who, in either case, is receiving 24-hour residential care from a licensed community care facility. (5) This section does not apply to a personal attendant providing care for a child if the parent or guardian of the child receives Child Care and Development Services pursuant to any program authorized under the Child Care and Development Services Act (Chapter 2 (commencing with Section 8200) of Part 6 of the Education Code) or the California Work Opportunity and Responsibility to Kids Act (Chapter 2 (commencing with Section 11200) of Part 2 of Division 9 of the Welfare and Institutions Code) and the care is provided in the home of the child. (d) This section does not affect, change, or limit an employer's liability under the workers' compensation law. SEC. 3. Section 1194.3 is added to the Labor Code, to read: 1194.3. (a) Notwithstanding Section 1194.2, in any action under Section 98, 1193.6, or 1194 to recover unlawfully withheld wages or unpaid overtime compensation, a household worker shall be entitled to recover liquidated damages in an amount equal to the unlawfully withheld wages or unpaid overtime compensation and interest on that amount. (b) For purposes of this section, "household worker" means an employee providing services related to the care of persons or maintenance of a private household or its premises. A "household worker" shall include, but is not limited to, a butler, chauffeur, companion, cook, day worker, gardener, graduate nurse, groom, housecleaner, housekeeper, maid, practical nurse, tutor, valet, or person in a similar occupation. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.