Nicole Rice

Bill to clarify tracking hours worked heads to Governor

By Nicole Rice, Policy Director, Government Relations

Capitol Update, July 21, 2016

There has been a long-standing practice and interpretation of California law that employers are not required to track the hours worked by their exempt employees.  In response to a recent federal court decision challenging that notion, the Legislature sent AB 2535 (Assembly Member Sebastian Ridley-Thomas, D-Los Angeles) to Governor Brown to clarify this understanding in state law.

AB 2535 amends Labor Code Section 226 to confirm that the itemized wage statement does not need to include total hours worked for those employees whose compensation is solely based on salary and are exempt from the payment of overtime under specified exemptions for executive, administrative and professional employees.  Doing so will eliminate uncertainty, thereby minimizing litigation risk for manufacturers while ensuring that employees receive accurate salaries.

The bill enjoyed overwhelming bipartisan support in both legislative Houses and CMTA is pleased to urge the Governor’s signature on this clarifying proposal.

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