Overtime Bill Could Have Catastrophic Impact

According to a report by the Sacramento Bee the state Senate voted Thursday, to repeal the exemption of farm workers from the state’s 69-year-old law requiring payment of overtime after eights hours of work.
United States Employment and HR
To print this article, all you need is to be registered or login on Mondaq.com.

Reprinted from Dairy Herd Management

According to a report by the Sacramento Bee the state Senate voted Thursday, to repeal the exemption of farm workers from the state's 69-year-old law requiring payment of overtime after eights hours of work.

The Senate bill 1121 is expected to pass the Assembly. Gov. Arnold Schwarzenegger would have the final word.

According to Anthony Raimondo, agriculture labor law attorney with McCormick Barstow in Fresno, Calif., this bill would have a massive and catastrophic impact on the dairy industry.

Most dairy employees work nine to 10 hours per day, which is currently regular time. If it was overtime, labor costs go up considerably, says Raimondo.

For example, if a milker worked a 10-hour shift, six days per week, under the current law at $8 per hour he would earn $480 per week.

Under SB1121, the milker would be paid 40 hours at $8 per hour, plus 18 overtime hours at $12 per hour. For a week's pay of $536, this is 12 percent higher than the current law.

"Remember that payroll numbers drive other costs, like payroll taxes and workers' compensation," reminds Raimondo. "This is not what agriculture needs in these difficult times, particularly in the dairy industry."

For more, read: California lawmaker hopes to win one more for farmworkers

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More