HOUSE BILL REPORT

HB 2916

BYRepresentatives Prentice, Vekich, R. King, Leonard, Cole, Basich, K. Wilson and Wineberry

Revising provisions on conditions of employment.

House Committe on Commerce & Labor

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (7)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Jones, R. King, Leonard, O'Brien and Prentice.

Minority Report:  Do not pass.  (4)

      Signed by Representatives Smith, Ranking Republican Member; Forner, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR FEBRUARY 2, 1990

BACKGROUND:

Under Washington's minimum wage and overtime compensation law and the federal Fair Labor Standards Act, most employees are entitled compensation at one and one-half times their regular rate of pay for all hours worked in excess of 40 hours in a work week.  Employers are not prohibited from requiring employees to work more than 40 hours in a work week.  The labor laws do not regulate the obligations of an employer toward an employee when the employee is required to report to work but no work is provided.

SUMMARY:

SUBSTITUTE BILL:

NEW OVERTIME PAY PROVISIONS

No employer may require an employee to work more than eight hours a day or 40 hours a week, unless an exemption is granted.  Voluntary overtime is permitted.

Overtime compensation - non 4-10 work schedules

For work schedules other than a schedule of four 10-hour days in a work week, work over eight hours in a work day must be compensated at time and one-half for hours up to 12 hours a day.  Work over 12 hours in a work day must be compensated at double time.  Work over 40 hours in a work week must be compensated as required under current law (time and one- half).

Overtime compensation - 4-10 work schedules

For work schedules of four 10-hour days in a work week, work up to 10 hours in a work day may be required.  Work over 10 hours in a work day or over 40 hours in a work week must be compensated at time and one- half for hours up to 12 hours a day.  Work over 12 hours in a work day must be compensated at double time.

Overtime compensation - flexible work arrangements

For voluntary flexible work arrangements, the "over eight hours" overtime requirement does not apply to the first two hours worked over eight hours. Flexible work arrangements include arrangements in which an employee chooses the time of arrival and departure during designated work hours before or after the core hours of work, or arrangements in which the employee may use job sharing or choose voluntary leaves of absence without pay, up to one month per year.

Exemptions

The new overtime provisions do not apply to employers who employ fewer than 25 employees, employees exempt from the current minimum wage and overtime law, employees in fire protection or law enforcement activities, employees whose total work week hours are less than 30 hours, and work performed in emergencies.  Employees covered under the Longshore and Harbor Workers' Compensation Act may be required to work up to 12 hours a day.

Other provisions

An employer may not require an employee to work multiple daily shifts of less than four consecutive hours.

If more than one overtime provision applies to the employee's hours, overtime wages are calculated under the provision providing the higher compensation.

An employee may bring an action against an employer if the employer discharges or otherwise discriminates against the employee for exercising his or her rights under the new overtime compensation requirements.

CHANGES TO CURRENT OVERTIME LAW EXEMPTIONS

The exemptions from the requirements for paying time and one-half pay for work over 40 hours in a work week are deleted for employees in packing, packaging, grading, canning, processing, or delivering agricultural commodities.

"PAY FOR REPORTING TO WORK" REQUIREMENTS

The employee must be paid for half the regularly scheduled hours or for four hours, whichever is greater, if the employee reports to work as required but is given less than half the scheduled day's work. The "pay for reporting to work" provisions do not apply (1) if operations cannot commence because of threat to employees or cause beyond the employer's control, (2) if public utilities are interrupted, (3) to employees on paid stand-by status, or (4) to employment in fire protection or law enforcement activities, or health care.

APPLICATION TO COLLECTIVE BARGAINING AGREEMENTS

The new provisions do not apply to employees covered by an unexpired collective bargaining agreement until the expiration of the agreement.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill makes the following revisions to the original bill:  (1)  The exemption for truck and bus drivers under current overtime law is restored; (2) the exemption from current overtime law is deleted for employees in canning and processing agricultural commodities; (3) the requirement for overtime compensation when an employee works more than six days in a work week is deleted; (4) the authority for an employer to require up to 72 hours of work in a work week is deleted and mandatory work over 40 hours per work week or over eight hours per day is prohibited; (5) the prohibition against requiring more than 12 consecutive days of work is deleted; (6) a limited exemption from the new overtime requirements is provided for up to 10 hours per work day for employees covered by the Longshore and Harbor Workers' Compensation Act; (7) the exemption from the new overtime requirements for health care employees is deleted; (8) procedures for an employee to pursue a discrimination claim are specified;  (9) a provision is added to apply the new overtime requirements to employees covered by collective bargaining agreements after the agreements expire; and (10) the "pay for reporting" requirements are modified to delete the special requirements related to pay upon the employee's second report.

Fiscal Note:      Requested January 27, 1990.

House Committee ‑ Testified For:    (Original bill) Don Grinde, Marilyn Jo Henshaw, and Anthony Morehouse, International Union of Aerospace Machinists, Local 751; Cindy Zehnder, Joint Council of Teamsters; and John Burbank, Washington State Labor Council.

House Committee - Testified Against:      (Original bill) Larry Stevens, National Electrical Contractors Association, Mechanical Contractors Association, and Washington Automotive Wholesalers; Ed Hatcher, Northwest Alloys; Clif Finch, Association of Washington Business; Marty Sangster, Washington Trucking Association; and Pat Harrison, Aloria Smith, and Lorie Bielinski, Communication Workers of America.

House Committee - Testimony For:    (Original bill) Employees suffer enormous stress, and physical and family problems, when long hours of overtime are mandated.  Only voluntary overtime allows fair treatment for employees.  When overtime is mandatory, the employee cannot plan his or her family obligations or participate in community activities.  Employers have not been receptive to suggestions for change that will increase productivity without requiring long hours of overtime.  Safety becomes a large concern when overworked employees are on the job; overexposure to toxic workplace chemicals is also a concern.

House Committee - Testimony Against:      (Original bill)  Overtime issues should be bargained between the employees and the employer.  Some provisions of the bill conflict with agreements that have been negotiated.  Employees may not be allowed to choose alternative work schedules that suit their industry.  The issue is too complex to mandate without a thorough study of the impacts on different industries and occupations.  There are also concerns about the possible increases in job layoffs that could result if employers are not allowed flexibility in scheduling work. The bill is also opposed because mandatory overtime should be prohibited.  Employees should work overtime only if they volunteer for overtime.