(April 14, 2010) A California Chamber of Commerce-sponsored bill that provides a simplified process for establishing flexible work schedules will be considered in a Senate committee today.

SB 1335 (Cox; R-Fair Oaks/Dutton; R-Rancho Cucamonga) provides a simplified, voluntary way for establishing flexible work schedules, creating a win-win-win for employees, employers and the environment by promoting better work-life balance, improved workplace productivity and retention, and reduced traffic and greenhouse gases

Flexible or compressed work schedules, in which employees work fewer but longer days, such as four 10-hour days each week (4/10), nine-hour days with one day off every two weeks (9/80), or other schedules have become increasingly popular.

SB 1335 establishes a voluntary, employee-driven process where the employees can simply request in writing, and the employer may mutually agree to, a flexible work schedule.

Hours worked within that flexible schedule will be paid at straight time rates.

Benefits

Flexible work schedules are a win-win-win for employees, employers and the environment. For employees, flexible schedules help to better balance work and personal lives. A recent study showed that 82 percent of polled workers who transitioned to 4/10 schedules preferred it over a regular five-day, eight-hour-per-day schedule.

Working a flexible four-day schedule provides for up to 50 extra days each year for the average full-time employee. This means more time to spend with family, attend children’s school activities, care for dependent elders, go to medical appointments, go back to school or attend to other private matters that usually cannot be accomplished on a weekend.

For employers, flexible work schedules can greatly improve workplace productivity, efficiency and employee recruitment and retention.

For the environment, flexible schedules could help ease traffic congestion. A report released in 2005 by the state Department of Health Services shows that employees in the state spend up to 100 hours per year commuting.

More employees working flexible schedules could lead to fewer cars on the road and reduced greenhouse gas emissions.

Problems with Current Law

• Current law discourages flexible schedules that benefit employees. California is one of only a handful of states that require daily overtime—payment of overtime for hours worked over eight hours in a day.

Federal law and most states only require weekly overtime—payment of overtime for hours worked over 40 in a week.

Because of California’s daily overtime requirement, fewer employers are able to grant flexible schedules. Particularly in today’s economic downturn, many employers cannot afford to pay overtime and find themselves forced to choose between allowing flexible schedules and keeping employees on the payroll.

• Current law is unnecessarily complex and could lead to employers being sued. Currently, the only method for employers to grant employees a flexible work schedule without payment of daily overtime is a rigid, complex and bureaucratic process, the adoption of an “alternative workweek schedule.

Adoption of such an alternative workweek schedule is permitted under law only if the employer conducts a secret ballot election and two-thirds of the affected employees in the work unit affirmatively vote “yes” on the proposal. As part of the process, employers must provide notifications, hold meetings, deliver ballots and file election results in accordance with strict schedules and procedures. Any deviation from the requirements can void the election and give rise to lawsuits that can seek up to three years of back overtime pay for affected workers, along with huge penalties and fines.

Employee Protections

SB 1335 contains important employee protections and ensures that these protections remain intact in a number of ways, including:

• The employee is still paid normal overtime for any hours worked over 10 in a day and 40 in a week.
• The employee must request the flexible schedule in writing.
• The employee or the employer may terminate the schedule agreement in writing at any time.
• The employer is prohibited from inducing an employee to request a flexible schedule by promising a benefit or threatening a detriment.
• The bill does not affect workers who are covered by collective bargaining agreements.
• The bill does not affect employees of the state or local governments.

Action Needed

SB 1335 will be heard in the Senate Labor and Industrial Relations Committee today at 9:30 a.m.

The CalChamber urges members to ask committee members to support SB 1335.

Staff Contact: Kyla Christoffersen

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