Extending PAGA for Construction Employees: Assembly Bill No. 1034
In the ever-evolving landscape of labor laws, Assembly Bill No. 1034, introduced by Assemblymember Grayson, brings significant changes for the construction industry in California. This bill focuses on the Labor Code Private Attorneys General Act of 2004 (PAGA) and its implications for construction workers.
Understanding PAGA
The Labor Code Private Attorneys General Act of 2004 (PAGA) empowers employees to file lawsuits for Labor Code violations on behalf of themselves and other affected employees. This act has been a critical tool for workers seeking to enforce their rights and hold employers accountable for labor law violations.
Key Provisions of AB 1034
Assembly Bill No. 1034 specifically addresses the exemption of construction industry employees from PAGA provisions. Here are the essential points:
Exemption Criteria:
The exemption applies to employees in the construction industry working under a valid collective bargaining agreement.
The agreement must cover wages, hours, and working conditions.
It must provide premium wage rates for all overtime hours worked.
The regular hourly pay rate must be at least 30% higher than the state minimum wage.
The agreement must prohibit Labor Code violations and include a grievance and binding arbitration procedure to address any violations.
Extension of Exemption:
Originally, the exemption was set to expire on January 1, 2025.
AB 1034 extends this exemption until January 1, 2038, giving construction industry employees under qualifying agreements an additional 13 years of exemption from PAGA.
Impact on the Construction Industry
The extension of the PAGA exemption is significant for both employers and employees in the construction sector. For employers, it provides a clear framework for compliance and reduces the risk of litigation under PAGA. For employees, it ensures that their collective bargaining agreements continue to protect their rights and provide mechanisms for addressing grievances.
Conclusion
Assembly Bill No. 1034 represents a crucial update in California’s labor laws, particularly for the construction industry. By extending the PAGA exemption, the bill aims to balance the interests of employers and employees, ensuring fair labor practices while maintaining robust protections for workers.
Stay informed about legislative changes and how they might affect your industry. If you have any questions or need further details, feel free to reach out!
Employers should update their policies and consult with legal counsel to ensure compliance with these new regulations.
Resources: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB1034