Is Full Overtime Pay Headed Your Way?
California is one of the few states that require time and half overtime pay for farm workers. Under the old law, this pay would apply if the farmer worker completed more than 10 hours in a day or more than 60 hours in a week. Governor Jerry Brown just signed Assembly Bill 1066 that will incrementally change this to comply with overtime rules for other workers. After full implementation, this means that California farm workers will get paid full overtime once they exceed 8 hours in a day or 40 hours in a week.
The measure will start in 2019 (or 2022 for farms with less than 25 employees) and will apply over time if farm workers work more than:
- 2019 (2022) – 9 1/2 hours per day or 55 hours per week,
- 2020 (2023) – 9 hours per day or 50 hours per week,
- 2021 (2024) – 8 1/2 hours per day or 45 hours per week,
- 2022 (2025) – 8 hours per day or 40 hours per week.
Most states follow the federal rule which only requires time paid for all hours worked (no time and half-pay). However, as pressure builds on wages to, it would not surprise me to see more states follow California and state imposing time and half on farm work.
We will keep you posted.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
New York has been batting this idea around for a bit. We are watching the issue carefully.