(July 30, 2010) Governor Arnold Schwarzenegger this week vetoed a California Chamber of Commerce-opposed “job killer” bill that would have harmed California farms and farm workers.
SB 1121 (Florez; D-Shafter) would have placed farms at a competitive disadvantage, increased cost of doing business for California farmers, and reduced available resources to invest in workers and farms by removing overtime exemption for agricultural employees.
California’s farmers and its labor protections for agricultural workers are the most progressive in nation. No other state requires overtime pay for agricultural workers once they have exceeded 40 hours of work in a workweek. In contrast, California agricultural workers receive overtime pay for hours worked over 10 in a workday – a provision not found in any other state.
In his veto message Governor Schwarzenegger agreed and explained that, “unfortunately, this measure, while well-intended, will not improve the lives of California's agricultural workers and instead will result in additional burdens on California businesses, increased unemployment, and lower wages.”
Because farmers, their employees and their operations are critically affected by the uncontrollable whims of nature and the seasonality of agricultural production, agriculture needs considerably greater flexibility in scheduling work than do other industries. State and federal laws recognize this reality. Federal law exempts persons employed in agriculture from overtime pay, and the California Industrial Welfare Commission understood and accepted the need to allow for a 10-hour workday in California’s farm fields. In fact, the Commission expressly rejected proposals for an 8-hour day due to “substantial evidence to warrant a 10-hour day instead. . . . The Commission received no compelling evidence to change it.” There remains widespread agreement that wage laws in other industries and businesses cannot be equated with those in farming due to farming’s unpredictability, seasonality of work, and the dynamics of the weather and harvest season.
California farmers value and respect their workers. In fact, many farmers voluntarily provide health benefits, vacation pay and 401(k) retirement plans for their employees.
CalChamber believes that if SB 1121 had been signed it would have backfired, hurting family farmers and cutting agricultural workers’ paychecks. California’s family farmers cannot successfully compete with other states and nations if they are forced to increase their production costs. Profit margins in agriculture are razor thin – farmers cannot remain successful if they must absorb a 10-percent increase in labor costs.
Consequently, farmers would have likely avoided paying overtime pay by limiting worker hours and hiring more workers to make up the difference. These changes would have resulted in at least a 20-percent reduction in the income of most agricultural workers during peak harvest season.
SB 1121 would have sabotaged California’s economic recovery. Agriculture has proven to be the one bright spot in the California’s otherwise bleak economy. SB 1121 would have undermined the ability of California agriculture to lead the state to economic recovery. California farmers already face many regulatory and legal burdens that do not encumber farmers in other states and countries. SB 1121 would have represented yet another obstacle and layer of bureaucracy that continues to tilt the economic playing field away from California famers, putting them at a competitive disadvantage.
Staff Contact: Marti Fisher