AB 2956

Bill Subjects

Abstract

Existing law, the Phase-In Overtime for Agricultural Workers Act of 2016, creates a schedule that phases in overtime requirements for an agricultural employee, as specified, over the course of 7 years, from 2019 to 2025, inclusive, including a requirement, beginning January 1, 2019, for an employer that employs more than 25 employees, that an agricultural employee receive no less than one and 12 times that employee's regular rate of pay for all hours worked in excess of 9.5 hours in one day or in excess of 55 hours in one week. Beginning January 1, 2022, existing law applies that provision to an employer that employs 25 or fewer employees. Existing law authorizes the Governor to delay the implementation of these overtime pay provisions if the Governor suspends the implementation of a scheduled state minimum wage increase, as specified. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws, including a credit in an amount measured by the amount of wages paid or incurred to prisoners employed in a specified program and a credit in an amount measured by the wages paid to certain employees within a designated census tract or economic development area. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2020, and before January 1, 2023, in an amount equal to the overtime wage premium paid or incurred by the taxpayer in the taxable year to an agricultural employee, as defined, in the taxable year pursuant to the specified provisions of the Phase-In Overtime for Agricultural Workers Act of 2016. The bill would also include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.