New Proposal Includes 10-Hour Workday

(August 26, 2008) In an effort to move discussions forward, Governor Arnold Schwarzenegger called a press conference on August 20 to outline a new budget proposal with an economic stimulus package that gives employers and employees flexibility in dealing with overtime.

The Governor’s proposal allows California employers to conform to other states by permitting employees to voluntarily work 10-hour days without overtime. In addition to saving employer costs, the flexibility allows employees to reduce work-related expenses, such as gas and other transportation costs and child care. For example, if a family with two wage earners could commute one less day a week and save a $4 gallon of gas, the annual savings would add up to approximately $400.

Union and government employees would be exempted from this voluntary flexible work schedule.
The economic stimulus package expedites spending of bond funds and provides targeted tax credits to help retain runaway Hollywood film jobs in the state.

The Governor’s budget proposal also includes: a temporary 1-cent increase in the sales tax for three years, followed by a permanent reduction to a quarter-cent below the current level; a two-year suspension of the ability of corporations to take the net operating loss (NOL) tax deduction to be followed by conformity to federal law when NOL is reinstated; tax amnesty; $2 billion in cuts beyond what was adopted by the legislative conference committee; an increase in the rainy day fund; and authority for the state Finance Director to make mid-year budget cuts if revenues decline.

For more information on the Governor’s budget proposal visit www.gov.ca.gov.