Washington State
House of Representatives
Office of Program Research		 BILL
ANALYSIS
Commerce & Labor Committee

HB 1920

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Addressing overtime compensation for truckers transporting agricultural commodities.

Sponsors: Representatives Conway and Wood.

Brief Summary of Bill
  • Requires overtime wages for employees transporting agricultural products and for certain other agricultural work unless the employee is employed by the farmer.

Hearing Date: 2/20/07

Staff: Joan Elgee (786-7106).

Background:

Under the state Minimum Wage Act, generally employees who work longer than 40 hours in a work week must be paid at least one and one-half times the regular rate. A number of employees are exempt, including individuals employed in delivering to storage, or to market or to a carrier for transportation to market, any agricultural or horticultural commodity.

The Department of Labor & Industries issued a policy statement interpreting this provision as applying only to individuals who work for an employer who actually produces the products. In August 2006, however, the Washington Supreme Court, in Cerillo v. Esparza, held that the statute was not ambiguous and that truckers hauling agricultural commodities are exempt from the overtime requirements.

Summary of Bill:

The Minimum Wage Act overtime exemption for transporting agricultural or horticultural commodities to storage, market or to a carrier is limited to employees of an owner or operator of a farm for commodities produced by the owner or operator.

Similarly, an exemption for those employed in commercial canning, freezing or other commercial processing is limited to individuals employed by the owner or operator of a farm for commodities produced by the owner or operator. Exempt services performed in connection with oyster farming and in connection with any agricultural or horticultural commodity after its delivery to a terminal market are limited to services for products produced by the owner or operator.

Rules Authority: The bill does not address the rule-making powers of an agency.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.