Existing law provides that 8 hours of labor constitute a days work unless it is otherwise expressly stipulated in a collective bargaining agreement, and requires that any work in excess of specified hours in one workday or one workweek be compensated at a rate higher than the regular rate of pay for the employee, as specified. Existing law authorizes, upon the proposal of an employer, employees of an employer to adopt a regularly scheduled alternative workweek that authorizes work by the affected employees for no longer than 10 hours per day within a 40-hour workweek without the payment to the affected employees of an overtime rate of compensation, as specified. Existing law prohibits an employer from employing an employee for a work period of more than 5 hours per day without providing the employee with a meal period, as specified, but, notwithstanding these provisions, existing law authorizes the Industrial Welfare Commission to adopt a working condition order permitting a meal period to commence after 6 hours of work if specified conditions are met. Under existing law, the Industrial Welfare Commission issues wage orders that regulates wages, hours, and working conditions in various occupations, including Wage Order No. 10-2001, which regulates the amusement and recreation industry.

This bill would provide that these provisions do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid collective bargaining agreement that expressly provides for the wages, hours of work, working conditions of employees, payment for time worked during the off-season and spring training, and final and binding arbitration of disputes. The bill would require the Department of Industrial Relations to amend and republish Wage Order No. 10-2001 to provide that specified provisions of the wage order do not apply to a person subject to these provisions, as specified.

Existing law requires an employer, semimonthly or at the time of payment of wages, to furnish an employee an accurate, itemized, written statement containing specified information regarding the amounts earned, hours worked, and the employees identity, among other things, subject to certain variations. Existing law provides that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by the employee if, among other things, the employee is exempt from the payment of minimum wage and overtime under specified law.

This bill would provide that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by an employee if the employee is exempt from the payment of minimum wage and overtime under the bills provisions described above.

Existing law, the Administrative Procedure Act, governs, among other things, the procedures for the adoption, amendment, or repeal of regulations by state agencies. Existing law also describes procedures for the promulgation of regulations by the Industrial Welfare Commission.

This bill would exempt these provisions from the rulemaking procedures described above.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law provides that 8 hours of labor constitute a days work unless it is otherwise expressly stipulated in a collective bargaining agreement, and requires that any work in excess of specified hours in one workday or one workweek be compensated at a rate higher than the regular rate of pay for the employee, as specified. Existing law authorizes, upon the proposal of an employer, employees of an employer to adopt a regularly scheduled alternative workweek that authorizes work by the affected employees for no longer than 10 hours per day within a 40-hour workweek without the payment to the affected employees of an overtime rate of compensation, as specified. Existing law prohibits an employer from employing an employee for a work period of more than 5 hours per day without providing the employee with a meal period, as specified, but, notwithstanding these provisions, existing law authorizes the Industrial Welfare Commission to adopt a working condition order permitting a meal period to commence after 6 hours of work if specified conditions are met. Under existing law, the Industrial Welfare Commission issues wage orders that regulates wages, hours, and working conditions in various occupations, including Wage Order No. 10-2001, which regulates the amusement and recreation industry.

This bill would provide that these provisions do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid collective bargaining agreement that expressly provides for the wages, hours of work, working conditions of employees, payment for time worked during the off-season and spring training, and final and binding arbitration of disputes. The bill would require the Department of Industrial Relations to amend and republish Wage Order No. 10-2001 to provide that specified provisions of the wage order do not apply to a person subject to these provisions, as specified.

Existing law requires an employer, semimonthly or at the time of payment of wages, to furnish an employee an accurate, itemized, written statement containing specified information regarding the amounts earned, hours worked, and the employees identity, among other things, subject to certain variations. Existing law provides that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by the employee if, among other things, the employee is exempt from the payment of minimum wage and overtime under specified law.

This bill would provide that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by an employee if the employee is exempt from the payment of minimum wage and overtime under the bills provisions described above.

Existing law, the Administrative Procedure Act, governs, among other things, the procedures for the adoption, amendment, or repeal of regulations by state agencies. Existing law also describes procedures for the promulgation of regulations by the Industrial Welfare Commission.

This bill would exempt these provisions from the rulemaking procedures described above.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law provides that 8 hours of labor constitute a days work unless it is otherwise expressly stipulated in a collective bargaining agreement, and requires that any work in excess of specified hours in one workday or one workweek be compensated at a rate higher than the regular rate of pay for the employee, as specified. Existing law authorizes, upon the proposal of an employer, employees of an employer to adopt a regularly scheduled alternative workweek that authorizes work by the affected employees for no longer than 10 hours per day within a 40-hour workweek without the payment to the affected employees of an overtime rate of compensation, as specified. Existing law prohibits an employer from employing an employee for a work period of more than 5 hours per day without providing the employee with a meal period, as specified, but, notwithstanding these provisions, existing law authorizes the Industrial Welfare Commission to adopt a working condition order permitting a meal period to commence after 6 hours of work if specified conditions are met. Under existing law, the Industrial Welfare Commission issues wage orders that regulates wages, hours, and working conditions in various occupations, including Wage Order No. 10-2001, which regulates the amusement and recreation industry.

This bill would provide that these provisions do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid collective bargaining agreement that expressly provides for the wages, hours of work, working conditions of employees, payment for time worked during the off-season and spring training, and final and binding arbitration of disputes. The bill would require the Department of Industrial Relations to amend and republish Wage Order No. 10-2001 to provide that specified provisions of the wage order do not apply to a person subject to these provisions, as specified.

Existing law requires an employer, semimonthly or at the time of payment of wages, to furnish an employee an accurate, itemized, written statement containing specified information regarding the amounts earned, hours worked, and the employees identity, among other things, subject to certain variations. Existing law provides that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by the employee if, among other things, the employee is exempt from the payment of minimum wage and overtime under specified law.

This bill would provide that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by an employee if the employee is exempt from the payment of minimum wage and overtime under the bills provisions described above.

Existing law, the Administrative Procedure Act, governs, among other things, the procedures for the adoption, amendment, or repeal of regulations by state agencies. Existing law also describes procedures for the promulgation of regulations by the Industrial Welfare Commission.

This bill would exempt these provisions from the rulemaking procedures described above.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law provides that 8 hours of labor constitute a days work unless it is otherwise expressly stipulated in a collective bargaining agreement, and requires that any work in excess of specified hours in one workday or one workweek be compensated at a rate higher than the regular rate of pay for the employee, as specified. Existing law authorizes, upon the proposal of an employer, employees of an employer to adopt a regularly scheduled alternative workweek that authorizes work by the affected employees for no longer than 10 hours per day within a 40-hour workweek without the payment to the affected employees of an overtime rate of compensation, as specified. Existing law prohibits an employer from employing an employee for a work period of more than 5 hours per day without providing the employee with a meal period, as specified, but, notwithstanding these provisions, existing law authorizes the Industrial Welfare Commission to adopt a working condition order permitting a meal period to commence after 6 hours of work if specified conditions are met. Under existing law, the Industrial Welfare Commission issues wage orders that regulates wages, hours, and working conditions in various occupations, including Wage Order No. 10-2001, which regulates the amusement and recreation industry.

This bill would provide that these provisions do not apply to a person who has entered into a is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid collective bargaining agreement that expressly provides for the wages, hours of work, and working conditions of employees. employees, payment for time worked during the off-season and spring training, and final and binding arbitration of disputes. The bill would require the Department of Industrial Relations to amend and republish Wage Order No. 10-2001 to provide that specified provisions of the wage order do not apply to a person subject to these provisions, as specified.

Existing law requires an employer, semimonthly or at the time of payment of wages, to furnish an employee an accurate, itemized, written statement containing specified information regarding the amounts earned, hours worked, and the employees identity, among other things, subject to certain variations. Existing law provides that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by the employee if, among other things, the employee is exempt from the payment of minimum wage and overtime under specified law.

This bill would provide that an itemized wage statement furnished by an employer pursuant to these provisions is not required to show total hours worked by an employee if the employee is exempt from the payment of minimum wage and overtime under the bills provisions described above.

Existing law, the Administrative Procedure Act, governs, among other things, the procedures for the adoption, amendment, or repeal of regulations by state agencies. Existing law also describes procedures for the promulgation of regulations by the Industrial Welfare Commission.

This bill would exempt these provisions from the rulemaking procedures described above.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

Existing law provides for the establishment of apprenticeship programs in various trades to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. Existing law requires a school district or school to notify each apprenticeship program in the same county as the school district or school of a career or college fair it is planning to hold, as specified.

This bill would require the Department of Industrial Relations to evaluate the effectiveness of the above-described notification requirement and submit, by January 1, 2025, 2026, a report making recommendations to the Legislature on how to improve outreach to high school students regarding apprenticeship and preapprenticeship opportunities, as well as ways to expand preapprenticeships and incentivize businesses to offer them.

Existing law provides for the establishment of apprenticeship programs in various trades to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. Existing law requires a school district or school to notify each apprenticeship program in the same county as the school district or school of a career or college fair it is planning to hold, as specified.

This bill would require the Department of Industrial Relations to evaluate the effectiveness of the above-described notification requirement and submit, by January 1, 2025, a report making recommendations to the Legislature on how to improve outreach to high school students regarding apprenticeship and preapprenticeship opportunities. opportunities, as well as ways to expand preapprenticeships and incentivize businesses to offer them.

Existing law provides for the establishment of apprenticeship programs in various trades to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. Existing law requires a school district or school to notify each apprenticeship program in the same county as the school district or school of a career or college fair it is planning to hold, as specified.

This bill would require the Department of Industrial Relations to evaluate the effectiveness of the above-described notification requirement and submit, by January 1, 2025, a report making recommendations to the Legislature on how to improve outreach to high school students regarding apprenticeship and preapprenticeship opportunities.

Existing law provides for the establishment of apprenticeship programs in various trades to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. Existing law requires a school district or school to notify each apprenticeship program in the same county as the school district or school of a career or college fair it is planning to hold, as specified.

This bill would require the Department of Industrial Relations to evaluate the effectiveness of the above-described notification requirement and submit, by January 1, 2025, a report making recommendations to the Legislature on how to improve outreach to high school students regarding preapprenticeship opportunities.

 UNFINISHED BUSINESS  

Bill No: SB 332

Author: Cortese (D), et al.

Amended: 8/31/23

Vote: 27 - Urgency

PRIOR SENATE VOTES NOT RELEVANT

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 9/7/23 (Pursuant to Senate Rule 29.10)

AYES: Cortese, Wilk, Durazo, Laird, Smallwood-Cuevas

ASSEMBLY FLOOR: 78-0, 9/5/23 - See last page for vote

SUBJECT: Minor league baseball players

SOURCE: Author

DIGEST:

This bill exempts minor league baseball players covered by a valid collective bargaining agreement (CBA) from minimum wage, overtime, meal period and recordkeeping requirements of existing law if the CBA meets specified criteria.

Assembly Amendments

gut and amend the previous contents of the bill that would have required the Department of Industrial Relations to evaluate the effectiveness of apprenticeship outreach in high schools.

ANALYSIS:

Existing law:

1. Requires an employer, semimonthly or at the time of payment of wages, to furnish an employee an accurate, itemized, written statement generally containing specified information regarding the amounts earned, hours worked, and the employee’s identity, among other things. An itemized wage statement furnished by an employer is not required to show total hours worked by the employee if, among other things, the employee is exempt from the payment of minimum wage and overtime. (Labor Code §226)
2. Sets California’s minimum wage at $15.50 an hour for all employers and specifies that after January 1, 2023, the minimum wage rate will be adjusted annually for inflation based on the national consumer price index for urban wage earners and clerical workers (CPI-W).  (Labor Code §1182.12)
3. Provides that eight hours of labor constitutes a day’s work. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. (Labor Code §510)
4. Permits, upon the proposal of an employer, the employees of an employer to adopt a regularly scheduled alternative workweek that authorizes work by the affected employees for no longer than 10 hours per day within a 40-hour workweek without the payment to the affected employees of an overtime rate of compensation. A proposal to adopt an alternative workweek schedule shall be deemed adopted only if it receives approval in a secret ballot election by at least two-thirds of affected employees in a readily identifiable work unit. (Labor Code §511(a))
5. Prohibits, with limited exceptions, an employer from employing an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the employer and employee. An employer shall not employ an employee for a work period of more than 10 hours per day without providing the employee with a second meal period of not less than 30 minutes, except that if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and the employee only if the first meal period was not waived. (Labor Code §512)
6. Regulates the wages, hours, working conditions of persons employed in the amusement and recreation industry. Exempts from wage and hour provisions employees who are employed in administrative, executive, or professional capacities. (Industrial Wage Commission Order No. 10-2001)
7. Establishes the Department of Industrial Relations (DIR) in the Labor and Workforce Development Agency (LWDA), and vests it with various powers and duties to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance their opportunities for profitable employment. (Labor Code §50.5)
8. Establishes the Administrative Procedures Act to, among other things, govern the procedures for the adoption, amendment, or repeal of regulations by state agencies. (Gov. Code §11340 et seq.)

This bill:

1. Exempts from the requirement to provide an employee an itemized wage statement any person who has entered into a contract to play baseball at the minor league level who satisfies the requirements set forth in 2) below.
2. Provides that labor code provisions regarding the payment of overtime and meal periods (Labor Code Sections 510, 511 and 512) do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid CBA that expressly provides for:
   1. Wages, hours of work, and working conditions of employees;
   2. Payment for time worked during the off-season and spring training; and
   3. Final and binding arbitration of disputes.
3. Requires, within three months after the effective date of this bill, the DIR to amend and republish Wage Order No. 10-2001, concerning the Amusement and Recreation Industry, to provide that Sections 3 to 7 and Sections 9 to 12, inclusive, of the wage order do not apply to a minor leave baseball player subject to 2) above. These wage order sections cover the following:

• Section 3: Hours and Days of Work
• Section 4: Minimum Wages
• Section 5: Reporting Time Pay
• Section 6: Licenses for Disabled Workers
• Section 7: Records
• Section 9: Uniforms and Equipment
• Section 10: Meals and Lodging
• Section 11: Meal Periods
• Section 12: Rest Periods

1. Provides that an amendment and republication, of a wage order, pursuant to this bill are exempt from the rulemaking provisions of the Administrative Procedure Act and specified wage order and Industrial Welfare Commission related labor code provisions, as specified.
2. States that this bill is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. This bill notes that the facts constituting the necessity are:
   1. In order to protect minor league baseball players from working in unregulated or unlawful conditions, it is necessary for the provisions of this act, and particularly the requirement to amend and republish Wage Order No. 10-2001, to take effect as quickly as possible, making the limitations imposed by this act necessary to protect the interests of minor league baseball players.

Background

A lawsuit first filed in 2014 by Aaron Senne and 42 other minor league baseball players (Aaron Senne v. Office of the Commissioner of Baseball^[1]) culminated in a settlement of $185 million in 2022. Minor league players alleged that the Major League Baseball (MLB) suppressed minor leaguers’ wages in violation of federal and state law. According to court documents, “most minor leaguers earn between around $3,000 and $7,500 for the entire year despite routinely working over 50 hours per week (and sometimes 70 hours per week) during the roughly five-month championship season. They receive no overtime pay, and instead routinely receive less than minimum wage during the championship season.” Specific to California, the case argued that players were working in violation of minimum wage and overtime provisions of the Labor Code and sought civil penalties under California’s Private Attorneys General Act.

The federal court ruled that minor league baseball players are employees and must be treated as such under California’s wage and hour laws. The judge also ruled that players must be compensated for time traveling on buses to games and for preseason practice. In addition, he found that the MLB violated itemized wage statement requirements. As part of the decision, the players were awarded $1,882,650 million in penalties.^[2] The case progressed through the courts for eight years until the summer of 2022 when the MLB agreed to pay minor leaguers $185 million to settle the lawsuit. Final approval of the settlement came days after news surfaced that the MLB Players Association (MLBPA) was working with minor league players to begin the process of unionizing.

On March 29, 2023, MLBPA announced the union had reached a tentative five-year CBA with MLB, the first such deal in minor league baseball history, to represent the 5,500 minor league baseball players. Prior to securing this agreement, the subpar working conditions of minor league players forced many of them to subsidize their baseball earnings by working other jobs. According to the uniform player contract, from April to October 2021, most minor league players made between $8,000 and $14,000.^[3] Some teams offered no housing assistance, even in high rent areas. Players received a meager per diem of $25 a day to cover meals.^[4]

According to the MLBPA, this CBA codified significant improvements in salaries, medical benefits, retirement benefits, home and road housing/lodging, transportation, nutrition, protection for injured players, protections for released players, impartial arbitration, and fundamental due process for players subject to investigation or discipline.^[5] In recognition of the historic CBA, this bill exempts these minor league players from specified state labor law provisions.

[NOTE: Please see the Senate Labor, Public Employment and Retirement Committee analysis on this bill for more background information.]

Comments

Need for this bill? According to the author, “SB 332 upholds the first ever nationwide collective bargaining agreement for minor league baseball players by exempting the 362 California-based minor league baseball players from certain wage, overtime, rest period, record keeping and meal periods as long as there is a CBA. Under this nationwide agreement between MLB and the labor union that represents all domestic minor league players, the MLBPA, minor league players are salaried employees with a host of additional new benefits. SB 332 ensures that these players can continue to pursue their dreams of possibly becoming a major league baseball player.”

The author additionally notes that, “under the terms of the new collective bargaining agreement (CBA), players uniformly across the country are treated as salaried employees and receive weekly salaries throughout the calendar year. However legislation must be passed to treat players as “exempt” salaried professionals by providing a narrowly tailored exemption from some aspects of the state’s wage-and-hour laws (including minimum wage, overtime, mandatory meal periods, mandatory rest periods, and recordkeeping requirements).”

Related/Prior Legislation

SB 41 (Cortese, Chapter 2, Statutes of 2023) provided an exemption from meal and rest period requirements for airline cabin crew employees that are covered by a valid collective bargaining agreement when that agreement includes an alternate provision addressing meal and rest breaks, as specified. The bill also prevented such flight attendants from filing new lawsuits for meal and rest break violations starting the day the bill was introduced (December 5, 2022) while allowing all litigation already pending at that time to run its natural course.

AB 1031 (Blanca Rubio, 2023) would have exempted from the requirement that an employee be relieved of all duties an employee providing direct support to an individual with an intellectual or developmental disability in an integrated community setting, under prescribed circumstances. The bill would have required, if a nonexempt employee is affirmatively required to interrupt their rest period to respond to the needs of a consumer, that another rest period be authorized and permitted reasonably promptly after the circumstances that led to the interruption have passed. The bill did not receive a hearing in its first policy committee.

SB 1334 (Bradford, Chapter 845, Statutes of 2022) extended existing meal and rest period rights and remedies available to private sector employees to those who provide direct patient care or support direct patient care in general acute care hospitals, clinics or public health settings who are directly employed by specified public sector employers.

AB 1512 (Carrillo, Chapter 343, Statutes of 2020), until January 1, 2027, authorized a person employed as a security officer, as specified, and whose employer is a registered private patrol operator, to be required to remain on the premises during rest periods and to remain on call during rest periods but only if they are covered by a valid collective bargaining agreement meeting specified criteria.

AB 2605 (Gipson, Chapter 584, Statutes of 2018) provided that specified employees who hold a safety-sensitive position at a petroleum facility, as defined, are exempt from rest and recovery period requirements.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Assembly Appropriations Committee, the fiscal effect of this bill are minor and absorbable costs to DIR.

SUPPORT: (Verified 9/7/23)

Inland Empire 66ers of San Bernardino

Los Angeles Angels

Los Angeles Dodgers LLC

Major League Baseball

Rancho Cucamonga Quakes

San Diego Padres

San Francisco Giants

San Jose Giants

OPPOSITION: (Verified 9/7/23)

None received

ARGUMENTS IN SUPPORT: According to proponents, “this bill is critical to the successful operation of the nine minor league baseball teams in California (San Jose Giants, Sacramento River Cats, Fresno Grizzlies, Inland Empire “San Bernardino” 66ers, Stockton Ports, Modesto Nuts, Visalia Rawhide, Rancho Cucamonga Quakes and Lake Elsinore Storm) and the 362 minor league players assigned to their rosters.” They continue, “The MLBPA and Major League Baseball (“MLB”) recently negotiated and ratified the first-ever Collective Bargaining Agreement (“CBA”) for the benefit of all domestic minor league players governing salaries and benefits on a national scale that correspond with the different levels described above. In addition to substantial salary increases, the CBA provided for enhanced benefits, including improved health care coverage, retirement benefits, housing subsidies, meal allowances and tuition assistance. The critical underlying assumption of both players and management as reflected in the CBA, is that all players be compensated as salaried, exempt employees.”

They conclude by stating that, “Without the passage of Senate Bill 332, California minor league teams would be subject to state wage and hour laws that are fundamentally incompatible with the CBA, with the player development process and with exhibiting an actual baseball game. For example, without the exemption, players in California would be required to take rest and lunch breaks even if they interrupted the playing of a game. And to reasonably manage overtime expenses, teams in California would be forced to restrict players from engaging in voluntary extra training or activities that the players themselves strongly desire in order to improve their skills and enhance their ability to advance to the major leagues. Senate Bill 332 outlines a limited, common-sense approach to compensating minor league players and honors the terms of the CBA negotiated by MLB and the MLBPA.”

ASSEMBLY FLOOR: 78-0, 9/5/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas

NO VOTE RECORDED: Megan Dahle, Jim Patterson

Prepared by: Alma Perez-Schwab / L., P.E. & R. / (916) 651-1556

9/8/23 13:58:37

**** END ****

1. Senne et al v. Office of the Commissioner of Baseball, et al: ORDER RE DISPOSITIVE MOTIONS, MOTIONS TO EXCLUDE, AND MOTION TO STRIKE (Dkt. Nos. 969, 971, 979, 980, 986, 987, 988, 1025). Signed by Judge Joseph C. Spero on March 10, 2022. (jcslc1, COURT STAFF) (docketbird.com). ↑

2. “Minor League Baseball Players are MLB Employees, Owed Damages, Judge Rules,” by Scott Polacek, Bleacher Report, March 15, 2022. ↑

3. “Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a ‘mental health crisis’” ESPN online, September 30, 2021, available at: Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a 'mental health crisis' - ESPN. ↑

4. Ted Berg, “$12,000 a year; A minor leaguer takes his fight for fair pay public,” USA TODAY SPORTS, Jan. 31, 2017. Available at: $12,000 a year: A minor leaguer takes his fight for fair pay public | For The Win (usatoday.com). ↑

5. https://www.mlbplayers.com/milb-players ↑

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Dave Cortese, Chair

2023 - 2024 Regular

Bill No: SB 332 Hearing Date: September 7, 2023

SUBJECT: Minor league baseball players

KEY ISSUE

Should the Legislature exempt minor league baseball players covered by a valid collective bargaining agreement (CBA), meeting specified criteria, from wage, overtime, and meal period requirements of existing law?

ANALYSIS

Existing law:

1. Requires an employer, semimonthly or at the time of payment of wages, to furnish an employee an accurate, itemized, written statement generally containing specified information regarding the amounts earned, hours worked, and the employee’s identity, among other things. An itemized wage statement furnished by an employer is not required to show total hours worked by the employee if, among other things, the employee is exempt from the payment of minimum wage and overtime. (Labor Code §226)
2. Sets California’s minimum wage at $15.50 an hour for all employers and specifies that after January 1, 2023, the minimum wage rate will be adjusted annually for inflation based on the national consumer price index for urban wage earners and clerical workers (CPI-W).  (Labor Code §1182.12)
3. Provides that eight hours of labor constitutes a day’s work. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. (Labor Code §510)
4. Permits, upon the proposal of an employer, the employees of an employer to adopt a regularly scheduled alternative workweek that authorizes work by the affected employees for no longer than 10 hours per day within a 40-hour workweek without the payment to the affected employees of an overtime rate of compensation. A proposal to adopt an alternative workweek schedule shall be deemed adopted only if it receives approval in a secret ballot election by at least two-thirds of affected employees in a readily identifiable work unit. (Labor Code §511(a))
5. Prohibits, with limited exceptions, an employer from employing an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the employer and employee. An employer shall not employ an employee for a work period of more than 10 hours per day without providing the employee with a second meal period of not less than 30 minutes, except that if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and the employee only if the first meal period was not waived. (Labor Code §512)
6. Regulates the wages, hours, working conditions of persons employed in the amusement and recreation industry. Exempts from wage and hour provisions employees who are employed in administrative, executive, or professional capacities. (Industrial Wage Commission Order No. 10-2001)
7. Establishes the Department of Industrial Relations (DIR) in the Labor and Workforce Development Agency (LWDA), and vests it with various powers and duties to foster, promote, and develop the welfare of the wage earners of California, to improve their working conditions, and to advance their opportunities for profitable employment. (Labor Code §50.5)
8. Establishes the Administrative Procedures Act to, among other things, govern the procedures for the adoption, amendment, or repeal of regulations by state agencies. (Gov. Code §11340 et seq.)

This bill:

1. Exempts from the requirement to provide an employee an itemized wage statement any person who has entered into a contract to play baseball at the minor league level who satisfies the requirements set forth in 2) below.
2. Provides that labor code provisions regarding the payment of overtime and meal periods (Labor Code section 510, 511 and 512) do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid collective bargaining agreement (CBA) that expressly provides for:
   1. Wages, hours of work, and working conditions of employees;
   2. Payment for time worked during the off-season and spring training; and
   3. Final and binding arbitration of disputes.
3. Requires, within three months after the effective date of this bill, the Department of Industrial Relations to amend and republish Wage Order No. 10-2001, concerning the Amusement and Recreation Industry, to provide that Sections 3 to 7 and sections 9 to 12, inclusive, of the wage order do not apply to a minor leave baseball player subject to 2) above. These wage order sections cover the following:

Section 3: Hours and Days of Work

Section 4: Minimum Wages

Section 5: Reporting Time Pay

Section 6: Licenses for Disabled Workers

Section 7: Records

Section 9: Uniforms and Equipment

Section 10: Meals and Lodging

Section 11: Meal Periods
Section 12: Rest Periods

1. Provides that an amendment and republication, of a wage order, pursuant to this bill are exempt from the rulemaking provisions of the Administrative Procedure Act and specified wage order and Industrial Welfare Commission related labor code provisions, as specified.
2. States that this act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The bill notes that the facts constituting the necessity are:
   1. In order to protect minor league baseball players from working in unregulated or unlawful conditions, it is necessary for the provisions of this act, and particularly the requirement to amend and republish Wage Order No. 10-2001, to take effect as quickly as possible, making the limitations imposed by this act necessary to protect the interests of minor league baseball players.

COMMENTS

1. Background: Minor League Baseball Players Organize

A lawsuit first filed in 2014 by Aaron Senne and 42 other minor league baseball players (Aaron Senne v. Office of the Commissioner of Baseball^[1]) culminated in a settlement of $185 million in 2022. Minor league players alleged that the Major League Baseball (MLB) suppressed minor leaguers’ wages in violation of federal and state law. According to court documents, “most minor leaguers earn between around $3,000 and $7,500 for the entire year despite routinely working over 50 hours per week (and sometimes 70 hours per week) during the roughly five-month championship season. They receive no overtime pay, and instead routinely receive less than minimum wage during the championship season.” Specific to California, the case argued that players were working in violation of minimum wage and overtime provisions of the Labor Code and sought civil penalties under California’s Private Attorneys General Act.

The federal court ruled that minor league baseball players are employees and must be treated as such under California’s wage and hour laws. The judge also ruled that players must be compensated for time traveling on buses to games and for preseason practice. In addition, he found that the MLB violated itemized wage statement requirements. As part of the decision, the players were awarded $1,882,650 million in penalties.^[2] The case progressed through the courts for eight years until the summer of 2022 when the MLB agreed to pay minor leaguers $185 million to settle the lawsuit. Final approval of the settlement came days after news surfaced that the MLB Players Association (MLBPA) was working with minor league players to begin the process of unionizing.

On March 29, 2023, MLBPA announced the union had reached a tentative five-year collective bargaining agreement (CBA) with MLB, the first such deal in minor league baseball history, to represent the 5,500 minor league baseball players. Prior to securing this agreement, the subpar working conditions of minor league players forced many of them to subsidize their baseball earnings by working other jobs. According to the uniform player contract, from April to October 2021, most minor league players made between $8,000 and $14,000.^[3] Some teams offered no housing assistance, even in high rent areas. Players received a meager per diem of $25 dollars a day to cover meals.^[4]

According to the MLBPA, this CBA codified significant improvements in salaries, medical benefits, retirement benefits, home and road housing/lodging, transportation, nutrition, protection for injured players, protections for released players, impartial arbitration, and fundamental due process for players subject to investigation or discipline.^[5] In recognition of the historic CBA, this bill exempts these minor league players from specified state labor law provisions.

As noted in the Assembly Labor and Employment Committee’s analysis of this bill:

It bears noting that the Legislature has taken a cautious approach to granting exemptions to state wage and hour law. For example, exemptions for meal and rest breaks historically have been for narrowly defined categories of employees in a specific industry who are unable to take breaks due to the unique nature of their working conditions. Here, it is nonviable for minor league players to take breaks during a scheduled baseball game. Similarly, in a few highly specialized occupations, such as crew members on commercial fishing boats, employers are exempt from recording total hours worked for the purpose of complying with wage statement requirements due to impracticability. This measure would exempt MLB minor league teams from this requirement based on a similar rationale.

2. Need for this bill?

According to the author, “SB 332 upholds the first ever nationwide collective bargaining agreement for minor league baseball players by exempting the 362 California-based minor league baseball players from certain wage, overtime, rest period, record keeping and meal periods as long as there is a CBA. Under this nationwide agreement between MLB and the labor union that represents all domestic minor league players, the MLBPA, minor league players are salaried employees with a host of additional new benefits. SB 332 ensures that these players can continue to pursue their dreams of possibly becoming a major league baseball player.”

The author additionally notes that, “under the terms of the new collective bargaining agreement (CBA), players uniformly across the country are treated as salaried employees and receive weekly salaries throughout the calendar year. However legislation must be passed to treat players as “exempt” salaried professionals by providing a narrowly tailored exemption from some aspects of the state’s wage-and-hour laws (including minimum wage, overtime, mandatory meal periods, mandatory rest periods, and recordkeeping requirements).”

3. Proponent Arguments:

According to proponents, “this bill is critical to the successful operation of the nine minor league baseball teams in California (San Jose Giants, Sacramento River Cats, Fresno Grizzlies, Inland Empire “San Bernardino” 66ers, Stockton Ports, Modesto Nuts, Visalia Rawhide, Rancho Cucamonga Quakes and Lake Elsinore Storm) and the 362 minor league players assigned to their rosters.” They continue, “The MLBPA and Major League Baseball (“MLB”) recently negotiated and ratified the first-ever Collective Bargaining Agreement (“CBA”) for the benefit of all domestic minor league players governing salaries and benefits on a national scale that correspond with the different levels described above. In addition to substantial salary increases, the CBA provided for enhanced benefits, including improved health care coverage, retirement benefits, housing subsidies, meal allowances and tuition assistance. The critical underlying assumption of both players and management as reflected in the CBA, is that all players be compensated as salaried, exempt employees.”

They conclude by stating that, “Without the passage of Senate Bill 332, California minor league teams would be subject to state wage and hour laws that are fundamentally incompatible with the CBA, with the player development process and with exhibiting an actual baseball game. For example, without the exemption, players in California would be required to take rest and lunch breaks even if they interrupted the playing of a game. And to reasonably manage overtime expenses, teams in California would be forced to restrict players from engaging in voluntary extra training or activities that the players themselves strongly desire in order to improve their skills and enhance their ability to advance to the major leagues. Senate Bill 332 outlines a limited, common-sense approach to compensating minor league players and honors the terms of the CBA negotiated by MLB and the MLBPA.”

4. Opponent Arguments:

None received.

5. Prior and Related Legislation:

SB 41 (Cortese, Chapter 2, Statutes of 2023) provided an exemption from meal and rest period requirements for airline cabin crew employees that are covered by a valid collective bargaining agreement when that agreement includes an alternate provision addressing meal and rest breaks, as specified. This bill also prevents such flight attendants from filing new lawsuits for meal and rest break violations starting the day this bill was introduced (December 5, 2022) while allowing all litigation already pending at that time to run its natural course.

AB 1031 (Blanca Rubio, 2023) would have exempted from the requirement that an employee be relieved of all duties an employee providing direct support to an individual with an intellectual or developmental disability in an integrated community setting, under prescribed circumstances. The bill would require, if a nonexempt employee is affirmatively required to interrupt their rest period to respond to the needs of a consumer, that another rest period be authorized and permitted reasonably promptly after the circumstances that led to the interruption have passed. This bill did not receive a hearing in its first policy Committee.

SB 1334 (Bradford, Chapter 845, Statutes of 2022) extends existing meal and rest period rights and remedies available to private sector employees to those who provide direct patient care or support direct patient care in general acute care hospitals, clinics or public health settings who are directly employed by specified public sector employers.

AB 1512 (Carrillo, Chapter 343, Statutes of 2020), until January 1, 2027, authorizes a person employed as a security officer, as specified, and whose employer is a registered private patrol operator, to be required to remain on the premises during rest periods and to remain on call during rest periods but only if they are covered by a valid collective bargaining agreement meeting specified criteria.

AB 2605 (Gipson, Chapter 584, Statutes of 2018), provides that specified employees who hold a safety-sensitive position at a petroleum facility, as defined, are exempt from rest and recovery period requirements.

SUPPORT

Inland Empire 66ers of San Bernardino
Los Angeles Angels
Los Angeles Dodgers LLC
Rancho Cucamonga Quakes
San Diego Padres
San Francisco Giants
San Jose Giants

OPPOSITION

None received

-- END --

1. Senne et al v. Office of the Commissioner of Baseball, et al: ORDER RE DISPOSITIVE MOTIONS, MOTIONS TO EXCLUDE, AND MOTION TO STRIKE (Dkt. Nos. 969, 971, 979, 980, 986, 987, 988, 1025). Signed by Judge Joseph C. Spero on March 10, 2022. (jcslc1, COURT STAFF) (docketbird.com). ↑

2. “Minor League Baseball Players are MLB Employees, Owed Damages, Judge Rules,” by Scott Polacek, Bleacher Report, March 15, 2022. ↑

3. “Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a ‘mental health crisis’” ESPN online, September 30, 2021, available at: Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a 'mental health crisis' - ESPN. ↑

4. Ted Berg, “$12,000 a year; A minor leaguer takes his fight for fair pay public,” USA TODAY SPORTS, Jan. 31, 2017. Available at: $12,000 a year: A minor leaguer takes his fight for fair pay public | For The Win (usatoday.com). ↑

5. https://www.mlbplayers.com/milb-players ↑

SENATE THIRD READING

STR Bill Id:SB 332

Author:(Cortese)

As Amended Ver:August 31, 2023

2/3 vote. Urgency

SUMMARY

Exempts from labor code provisions regarding overtime, meal periods, and the provision of itemized wage statements minor league baseball players covered by a valid collective bargaining agreement (CBA) providing for wages, hours of work, working conditions, payment for time worked during off-season and spring training, and final and binding arbitration of disputes.

Major Provisions

1. Exempts from the requirement to provide an employee an itemized wage statement any person who has entered into a contract to play baseball at the minor league level who satisfies the requirements set forth in 2), below.
2. Provides that labor code provisions regarding the payment of overtime and meal periods do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid CBA that expressly provides for all of the following:
   1. Wages, hours of work, and working conditions of employees.
   2. Payment for time worked during the off-season and spring training.
   3. Final and binding arbitration of disputes.
3. Requires within three months after the effective date of this section, the Department of Industrial Relations to amend and republish Wage Order No. 10-2001, concerning the Amusement and Recreation Industry, to provide that Sections 3 to 7, inclusive, and 9 to 12, inclusive, of the wage order do not apply to a person subject to 2), above. These wage order sections cover the following:
   1. Hours and days of work.
   2. Minimum wages.
   3. Reporting time pay.
   4. Licenses for disabled workers.
   5. Records.
   6. Uniforms and equipment.
   7. Meals and lodging.
   8. Meal periods.
   9. Rest periods.
4. Provides that an amendment and republication pursuant to this section are exempt from the rulemaking provisions of the Administrative Procedure Act.
5. States that this act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of California Constitution Article IV and shall go into immediate effect. The facts constituting the necessity are:
   1. In order to protect minor league baseball players from working in unregulated or unlawful conditions, it is necessary for the provisions of this act, and particularly the requirement to amend and republish Wage Order No. 10-2001, to take effect as quickly as possible, making the limitations imposed by this act necessary to protect the interests of minor league baseball players.

COMMENTS

As mentioned by the author below, this bill stems from the negotiation of a first time national CBA for minor league baseball players with Major League Baseball (MLB), finalized this spring. The CBA includes historic gains for players, including significant pay raises and fully subsidized housing. Prior to securing this agreement, the working conditions of minor league players were generally bleak. Many players subsidized their baseball earnings by working other gigs. According to the uniform player contract, from April to October 2021, most minor league players made between $8,000 and $14,000.^[1] Some teams offered no housing assistance, even in high rent areas. Players received a meager per diem of $25 dollars a day to cover meals.^[2]

Another impetus for this measure is a federal court decision from last year that minor league baseball players are employees and must be treated as such under California's wage and hour laws.^[3] The U.S. District Court judge ruled that players must be compensated for time traveling on buses to games and for preseason practice. In addition, he found that the MLB violated itemized wage statement requirements. As part of the decision, the players were awarded $1.8 million in penalties.^[4]

It bears noting that the Legislature has taken a cautious approach to granting exemptions to state wage and hour law. For example, exemptions for meal and rest breaks historically have been for narrowly defined categories of employees in a specific industry who are unable to take breaks due to the unique nature of their working conditions. Here, it is nonviable for minor league players to take breaks during a scheduled baseball game. Similarly, in a few highly specialized occupations, such as crew members on commercial fishing boats, employers are exempt from recording total hours worked for the purpose of complying with wage statement requirements due to impracticability. This measure would exempt MLB minor league teams from this requirement based on a similar rationale.

According to the Author

"SB 332 would codify the first ever nationwide collective bargaining agreement for minor league baseball players by exempting the 362 California-based minor league baseball players from certain wage, overtime, rest period, record keeping and meal periods as long as there is a CBA. Under this nationwide agreement between MLB and the labor union that represents all domestic minor league players, the MLBPA, minor league players are salaried employees with a host of additional new benefits. SB 332 ensures that these players can continue to pursue their dreams of possibly becoming a major league baseball player."

The author further states that the bill promotes economic equity because "SB 332 reflects months of negotiations and an agreement between minor league baseball players and their union (MLBPA) and MLB, finally culminating in a first ever CBA for minor league players that secures greater pay and benefits through the CBA. These benefits include housing, health, tuition assistance, meals and retirement."

Arguments in Support

The San Francisco Giants are in support and state, "Without the passage of Senate Bill 332, California minor league teams would be subject to state wage and hour laws that are fundamentally incompatible with the CBA, with the player development process and with exhibiting an actual baseball game. For example, without the exemption, players in California would be required to take rest and lunch breaks even if they interrupted the playing of a game. And to reasonably manage overtime expenses, teams in California would be forced to restrict players from engaging in voluntary extra training or activities that the players themselves strongly desire in order to improve their skills and enhance their ability to advance to the major leagues. Senate Bill 332 outlines a limited, common-sense approach to compensating minor league players and honors the terms of the CBA negotiated by MLB and the MLBPA."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee minor and absorbable costs to DIR.

VOTES

SENATE FLOOR: 37-0-3

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener

ABS, ABST OR NV: Blakespear, Glazer, Wilk

ASM LABOR AND EMPLOYMENT: 7-0-0

YES: Kalra, Flora, Chen, Haney, Ortega, Reyes, Ward

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Mathis, Papan, Pellerin, Sanchez, Soria, Weber, Wilson

ABS, ABST OR NV: McCarty

UPDATED

VERSION: August 31, 2023

CONSULTANT: Megan Lane / L. & E. / (916) 319-2091 FN: 0001360

1. "Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a 'mental health crisis'" ESPN online, September 30, 2021, available at: https://www.espn.com/mlb/story/_/id/32172108/can-union-fix-minor-leaguers-say-poverty-level-pay-poor-housing-driving-mental-health-crisis. ↑

2. Ted Berg, "$12,000 a year; A minor leaguer takes his fight for fair pay public," USA TODAY SPORTS, Jan. 31, 2017. Available at: https://ftw.usatoday.com/2017/01/minor-league-baseball-pay-fair-labor-standards-act-minimum-wage-lawsuit-kyle-johnson. ↑

3. Senne v. MLB, the March 10, 2022, ruling by U.S. District Court Judge Joseph Spero in the class action brought by minor league players can be found here: https://www.docketbird.com/court-documents/Senne-et-al-v-Office-of-the-Commissioner-of-Baseball-et-al/ORDER-RE-DISPOSITIVE-MOTIONS-MOTIONS-TO-EXCLUDE-AND-MOTION-TO-STRIKE-Dkt-Nos-969-971-979-980-986-987-988-1025-Signed-by-Judge-Joseph-C-Spero-on-March-10-2022-jcslc1-COURT-STAFF/cand-3:2014-cv-00608-01071. ↑

4. "Minor League Baseball Players are MLB Employees, Owed Damages, Judge Rules," by Scott Polacek, Bleacher Report, March 15, 2022. ↑

SENATE THIRD READING

STR Bill Id:SB 332

Author:(Cortese)

As Amended Ver:August 14, 2023

2/3 vote. Urgency

SUMMARY

Exempts from labor code provisions regarding overtime, meal periods, and the provision of itemized wage statements minor league baseball players covered by a valid collective bargaining agreement (CBA) providing for wages, hours of work, working conditions, payment for time worked during off-season and spring training, and final and binding arbitration of disputes.

Major Provisions

1. Exempts from the requirement to provide an employee an itemized wage statement any person who has entered into a contract to play baseball at the minor league level who satisfies the requirements set forth in 2), below.
2. Provides that labor code provisions regarding the payment of overtime and meal periods do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid CBA that expressly provides for all of the following:
   1. Wages, hours of work, and working conditions of employees.
   2. Payment for time worked during the off-season and spring training.
   3. Final and binding arbitration of disputes.
3. Requires within three months after the effective date of this section, the Department of Industrial Relations to amend and republish Wage Order No. 10-2001, concerning the Amusement and Recreation Industry, to provide that Sections 3 to 12, inclusive, of the wage order do not apply to a person subject to 2), above. These wage order sections cover the following:
   1. Hours and days of work.
   2. Minimum wages.
   3. Reporting time pay.
   4. Licenses for disabled workers.
   5. Records.
   6. Cash shortage and breakage.
   7. Uniforms and equipment.
   8. Meals and lodging.
   9. Meal periods.
   10. Rest periods.
4. Provides that an amendment and republication pursuant to this section are exempt from the rulemaking provisions of the Administrative Procedure Act.
5. States that this act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
   1. In order to protect minor league baseball players from working in unregulated or unlawful conditions, it is necessary for the provisions of this act, and particularly the requirement to amend and republish Wage Order No. 10-2001, to take effect as quickly as possible, making the limitations imposed by this act necessary to protect the interests of minor league baseball players.

COMMENTS

As mentioned by the author below, this bill stems from the negotiation of a first time national CBA for minor league baseball players with Major League Baseball (MLB), finalized this spring. The CBA includes historic gains for players, including significant pay raises and fully subsidized housing. Prior to securing this agreement, the working conditions of minor league players were generally bleak. Many players subsidized their baseball earnings by working other gigs. According to the uniform player contract, from April to October 2021, most minor league players made between $8,000 and $14,000.^[1] Some teams offered no housing assistance, even in high rent areas. Players received a meager per diem of $25 dollars a day to cover meals.^[2]

Another impetus for this measure is a federal court decision from last year that minor league baseball players are employees and must be treated as such under California’s wage and hour laws.^[3] The United States (U.S.) District Court judge ruled that players must be compensated for time traveling on buses to games and for preseason practice. In addition, he found that the MLB violated itemized wage statement requirements. As part of the decision, the players were awarded $1.8 million in penalties.^[4]

It bears noting that the Legislature has taken a cautious approach to granting exemptions to state wage and hour law. For example, exemptions for meal and rest breaks historically have been for narrowly defined categories of employees in a specific industry who are unable to take breaks due to the unique nature of their working conditions. Here, it is nonviable for minor league players to take breaks during a scheduled baseball game. Similarly, in a few highly specialized occupations, such as crew members on commercial fishing boats, employers are exempt from recording total hours worked for the purpose of complying with wage statement requirements due to impracticability. This measure would exempt MLB minor league teams from this requirement based on a similar rationale.

According to the Author

"SB 332 would codify the first ever nationwide collective bargaining agreement for minor league baseball players by exempting the 362 California-based minor league baseball players from certain wage, overtime, rest period, record keeping and meal periods as long as there is a CBA. Under this nationwide agreement between MLB and the labor union that represents all domestic minor league players, the MLBPA, minor league players are salaried employees with a host of additional new benefits. SB 332 ensures that these players can continue to pursue their dreams of possibly becoming a major league baseball player."

The author further states that the bill promotes economic equity because "SB 332 reflects months of negotiations and an agreement between minor league baseball players and their union (MLBPA) and MLB, finally culminating in a first ever CBA for minor league players that secures greater pay and benefits through the CBA. These benefits include housing, health, tuition assistance, meals and retirement."

Arguments in Support

The San Francisco Giants are in support and state, "Without the passage of Senate Bill 332, California minor league teams would be subject to state wage and hour laws that are fundamentally incompatible with the CBA, with the player development process and with exhibiting an actual baseball game. For example, without the exemption, players in California would be required to take rest and lunch breaks even if they interrupted the playing of a game. And to reasonably manage overtime expenses, teams in California would be forced to restrict players from engaging in voluntary extra training or activities that the players themselves strongly desire in order to improve their skills and enhance their ability to advance to the major leagues. Senate Bill 332 outlines a limited, common-sense approach to compensating minor league players and honors the terms of the CBA negotiated by MLB and the MLBPA."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee minor and absorbable costs to the Department of Industrial Relations.

VOTES

SENATE FLOOR: 37-0-3

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener

ABS, ABST OR NV: Blakespear, Glazer, Wilk

ASM LABOR AND EMPLOYMENT: 7-0-0

YES: Kalra, Flora, Chen, Haney, Ortega, Reyes, Ward

ASM APPROPRIATIONS: 15-0-1

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Mathis, Papan, Pellerin, Sanchez, Soria, Weber, Wilson

ABS, ABST OR NV: McCarty

UPDATED

VERSION: August 14, 2023

CONSULTANT: Megan Lane / L. & E. / (916) 319-2091 FN: 0001306

1. "Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a ‘mental health crisis’" ESPN online, September 30, 2021, available at: Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a 'mental health crisis' - ESPN. ↑

2. Ted Berg, "$12,000 a year; A minor leaguer takes his fight for fair pay public," USA TODAY SPORTS, Jan. 31, 2017. Available at: $12,000 a year: A minor leaguer takes his fight for fair pay public | For The Win (usatoday.com). ↑

3. Senne v. MLB, the March 10, 2022, ruling by U.S. District Court Judge Joseph Spero in the class action brought by minor league players can be found here: Senne et al v. Office of the Commissioner of Baseball, et al: ORDER RE DISPOSITIVE MOTIONS, MOTIONS TO EXCLUDE, AND MOTION TO STRIKE (Dkt. Nos. 969, 971, 979, 980, 986, 987, 988, 1025). Signed by Judge Joseph C. Spero on March 10, 2022. (jcslc1, COURT STAFF) (docketbird.com). ↑

4. "Minor League Baseball Players are MLB Employees, Owed Damages, Judge Rules," by Scott Polacek, Bleacher Report, March 15, 2022. ↑

Date of Hearing: August 23, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

SBPCA Bill Id:SB 332

Author:(Cortese) – As Amended Ver:August 14, 2023

Urgency: Yes State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill exempts a minor league baseball player covered by a valid collective bargaining agreement (CBA) from specified wage, overtime, and meal period requirements.

The CBA must be with a labor organization with at least 10 years of experience representing baseball players and expressly provide for the wages, hours of work, and working conditions of employees; payment for time worked during the off-season and spring training; and final and binding arbitration of disputes.

The Department of Industrial Relations (DIR) must amend and republish, within three months after the effective date of this bill, Wage Order 10-2001 to reflect this bill’s provisions.

FISCAL EFFECT:

Minor and absorbable costs to DIR.

COMMENTS:

1. Purpose. According to the author:

SB 332 would codify the first ever nationwide collective bargaining agreement for minor league baseball players by exempting the 362 California-based minor league baseball players form certain wage, overtime, rest period, record keeping and meal periods as long as there is a CBA. Under this nationwide agreement between [Major League Baseball (MLB)] and the labor union that represents all domestic minor league players, the [Major League Baseball Players Association (MLBPA)], minor league players are salaried employees with a host of additional new benefits.

This bill is supported by various MLB and minor league teams.

1. Minor League Baseball’s First CBA. A 2022 federal court decision ruled that minor league baseball players are employees and must be treated as such under California’s wage and hour laws, awarding the players $1.8 million in penalties. On March 29, 2023, MLBPA announced the union had reached a tentative five-year CBA with MLB, the first such deal in minor league baseball history. The CBA included significant gains for players, including pay raises and fully subsidized housing. Prior to the agreement, the working conditions of minor league players were generally bleak, with contracts revealing most players made between $8,000 and $14,000 from April to October 2021, and players subsidizing their baseball earnings by working other jobs. In recognition of the historic CBA, this bill exempts these minor league players from specified state labor law provisions.

As noted in the Assembly Labor and Employment Committee’s analysis of this bill:

It bears noting that the Legislature has taken a cautious approach to granting exemptions to state wage and hour law. For example, exemptions for meal and rest breaks historically have been for narrowly defined categories of employees in a specific industry who are unable to take breaks due to the unique nature of their working conditions. Here, it is nonviable for minor league players to take breaks during a scheduled baseball game.

1. Related Legislation. SB 41 (Cortese), Chapter 2, Statutes of 2023, provided that state meal and rest period requirements do not apply to an airline cabin crew employee if the employee is covered by a valid CBA, as specified.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: July 12, 2023

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Ash Kalra, Chair

SBPCA Bill Id:SB 332

Author:(Cortese) – As Amended Ver:June 12, 2023

SENATE VOTE: 37-0

SUBJECT: Minor league baseball players

Bill analyzed as proposed to be amended

SUMMARY: Exempts from labor code provisions regarding overtime, meal periods, and the provision of itemized wage statements minor league baseball players covered by a valid collective bargaining agreement (CBA) providing for wages, hours of work, working conditions, payment for time worked during off-season and spring training, and final and binding arbitration of disputes. Specifically, this bill:

1. Exempts from the requirement to provide an employee an itemized wage statement any person who has entered into a contract to play baseball at the minor league level who satisfies the requirements set forth in 2) below.
2. Provides that labor code provisions regarding the payment of overtime and meal periods do not apply to a person who is covered by a contract to play baseball at the minor league level with a labor organization that has at least 10 years of experience representing baseball players and who is compensated pursuant to the terms of a valid CBA that expressly provides for all of the following:
   1. Wages, hours of work, and working conditions of employees.
   2. Payment for time worked during the off-season and spring training.
   3. Final and binding arbitration of disputes.
3. Requires within three months after the effective date of this section, the Department of Industrial Relations to amend and republish Wage Order No. 10-2001, concerning the Amusement and Recreation Industry, to provide that Sections 3 to 12, inclusive, of the wage order do not apply to a person subject to 2) above. These wage order sections cover the following:
   1. Hours and days of work.
   2. Minimum wages.
   3. Reporting time pay.
   4. Licenses for disabled workers.
   5. Records.
   6. Cash shortage and breakage.
   7. Uniforms and equipment.
   8. Meals and lodging.
   9. Meal periods.
   10. Rest periods.
4. Provides that an amendment and republication pursuant to this section are exempt from the rulemaking provisions of the Administrative Procedure Act.
5. States that this act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
   1. In order to protect minor league baseball players from working in unregulated or unlawful conditions, it is necessary for the provisions of this act, and particularly the requirement to amend and republish Wage Order No. 10-2001, to take effect as quickly as possible, making the limitations imposed by this act necessary to protect the interests of minor league baseball players.

EXISTING LAW:

1. Requires an employer, semimonthly or at the time of payment of wages, to furnish an employee an accurate, itemized, written statement generally containing specified information regarding the amounts earned, hours worked, and the employee’s identity, among other things. An itemized wage statement furnished by an employer is not required to show total hours worked by the employee if, among other things, the employee is exempt from the payment of minimum wage and overtime. Labor Code §226.
2. Provides that eight hours of labor constitutes a day’s work. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee. Labor Code §510.
3. Permits, upon the proposal of an employer, the employees of an employer to adopt a regularly scheduled alternative workweek that authorizes work by the affected employees for no longer than 10 hours per day within a 40-hour workweek without the payment to the affected employees of an overtime rate of compensation. A proposal to adopt an alternative workweek schedule shall be deemed adopted only if it receives approval in a secret ballot election by at least two-thirds of affected employees in a readily identifiable work unit. Labor Code §511(a).
4. Prohibits, with limited exceptions, an employer from employing an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the employer and employee. An employer shall not employ an employee for a work period of more than 10 hours per day without providing the employee with a second meal period of not less than 30 minutes, except that if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and the employee only if the first meal period was not waived. Labor Code §512.
5. Regulates the wages, hours, working conditions of persons employed in the amusement and recreation industry. Exempts from wage and hour provisions employees who are employed in administrative, executive, or professional capacities. Industrial Wage Commission Order No. 10-2001.
6. Establishes the Administrative Procedures Act to, among other things, govern the procedures for the adoption, amendment, or repeal of regulations by state agencies. Gov. Code §11340 et seq.

FISCAL EFFECT: Unknown

COMMENTS: As mentioned by the author below, SB 332 stems from the negotiation of a first time national CBA for minor league baseball players with the MLB, finalized this spring. The CBA includes historic gains for players, including significant pay raises and fully subsidized housing. Prior to securing this agreement, the working conditions of minor league players were generally bleak. Many players subsidized their baseball earnings by working other gigs. According to the uniform player contract, from April to October 2021, most minor league players made between $8,000 and $14,000.^[1] Some teams offered no housing assistance, even in high rent areas. Players received a meager per diem of $25 dollars a day to cover meals.^[2]

Another impetus for this measure is a federal court decision from last year that minor league baseball players are employees and must be treated as such under California’s wage and hour laws.^[3] The U.S. District Court judge ruled that players must be compensated for time traveling on buses to games and for preseason practice. In addition, he found that the MLB violated itemized wage statement requirements. As part of the decision, the players were awarded $1.8 million in penalties.^[4]

It bears noting that the Legislature has taken a cautious approach to granting exemptions to state wage and hour law. For example, exemptions for meal and rest breaks historically have been for narrowly defined categories of employees in a specific industry who are unable to take breaks due to the unique nature of their working conditions. Here, it is nonviable for minor league players to take breaks during a scheduled baseball game. Similarly, in a few highly specialized occupations, such as crew members on commercial fishing boats, employers are exempt from recording total hours worked for the purpose of complying with wage statement requirements due to impracticability. This measure would exempt MLB minor league teams from this requirement based on a similar rationale.

According to the author, “SB 332 would codify the first ever nationwide collective bargaining agreement for minor league baseball players by exempting the 362 California-based minor league baseball players from certain wage, overtime, rest period, record keeping and meal periods as long as there is a CBA. Under this nationwide agreement between MLB and the labor union that represents all domestic minor league players, the MLBPA, minor league players are salaried employees with a host of additional new benefits. SB 332 ensures that these players can continue to pursue their dreams of possibly becoming a major league baseball player.”

The author further states that the bill promotes economic equity because “SB 332 reflects months of negotiations and an agreement between minor league baseball players and their union (MLBPA) and MLB, finally culminating in a first ever CBA for minor league players that secures greater pay and benefits through the CBA. These benefits include housing, health, tuition assistance, meals and retirement.”

Arguments in Support

The San Francisco Giants are in support and state, “Without the passage of Senate Bill 332, California minor league teams would be subject to state wage and hour laws that are fundamentally incompatible with the CBA, with the player development process and with exhibiting an actual baseball game. For example, without the exemption, players in California would be required to take rest and lunch breaks even if they interrupted the playing of a game. And to reasonably manage overtime expenses, teams in California would be forced to restrict players from engaging in voluntary extra training or activities that the players themselves strongly desire in order to improve their skills and enhance their ability to advance to the major leagues. Senate Bill 332 outlines a limited, common-sense approach to compensating minor league players and honors the terms of the CBA negotiated by MLB and the MLBPA.”

Arguments in Opposition

None on file.

Related and Prior Legislation

AB 1031 (Blanca Rubio) of 2023 would have exempted from the requirement that an employee be relieved of all duties an employee providing direct support to an individual with an intellectual or developmental disability in an integrated community setting, under prescribed circumstances. The bill would require, if a nonexempt employee is affirmatively required to interrupt their rest period to respond to the needs of a consumer, that another rest period be authorized and permitted reasonably promptly after the circumstances that led to the interruption have passed. This bill did not receive a hearing in this Committee.

SB 41 (Cortese) Chapter 2, Statutes of 2023, would provide that state meal and rest period requirements do not apply to an airline cabin crew employee if the employee is covered by a valid collective bargaining agreement under the Railway Labor Act and that agreement includes a provision addressing meal and rest breaks for airline cabin crew employees, as specified.

SB 1334 (Bradford) Chapter 845, Statutes of 2022, extends meal and rest period provisions to public employees who provide or support direct patient care in general acute care hospitals, clinics, or public health settings.

AB 1512 (Carrillo) Chapter 343, Statutes of 2020, authorizes a private patrol operator, as specified, to require its security officer employees, who are covered by a valid collective bargaining agreement, to remain on call during rest periods.

AB 2610 (Aguiar-Curry) Chapter 148, Statutes of 2018, permits commercial drivers transporting commercial feed to a consumer in a rural area to commence a meal period after six hours when specified conditions are met.

AB 2605 (Gipson) Chapter 584, Statutes of 2018, provides that specified employees who hold a safety-sensitive position at a petroleum facility, as defined, are exempt from rest and recovery period requirements.

REGISTERED SUPPORT / OPPOSITION:

Support

Inland Empire 66ers
Los Angeles Angels
Los Angeles Dodgers
Rancho Cucamonga Quakes
San Diego Padres
San Francisco Giants

Opposition

None on file.

Analysis Prepared by: Megan Lane / L. & E. /

1. “Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a ‘mental health crisis’” ESPN online, September 30, 2021, available at: Can a union fix this? Minor leaguers say poverty-level pay, poor housing are driving a 'mental health crisis' - ESPN. ↑

2. Ted Berg, “$12,000 a year; A minor leaguer takes his fight for fair pay public,” USA TODAY SPORTS, Jan. 31, 2017. Available at: $12,000 a year: A minor leaguer takes his fight for fair pay public | For The Win (usatoday.com). ↑

3. Senne v. MLB, the March 10, 2022, ruling by U.S. District Court Judge Joseph Spero in the class action brought by minor league players can be found here: Senne et al v. Office of the Commissioner of Baseball, et al: ORDER RE DISPOSITIVE MOTIONS, MOTIONS TO EXCLUDE, AND MOTION TO STRIKE (Dkt. Nos. 969, 971, 979, 980, 986, 987, 988, 1025). Signed by Judge Joseph C. Spero on March 10, 2022. (jcslc1, COURT STAFF) (docketbird.com). ↑

4. “Minor League Baseball Players are MLB Employees, Owed Damages, Judge Rules,” by Scott Polacek, Bleacher Report, March 15, 2022. ↑

 CONSENT  

Bill No: SB 332

Author: Cortese (D)

Amended: 4/19/23

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 5-0, 4/12/23

AYES: Cortese, Wilk, Durazo, Laird, Smallwood-Cuevas

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: Apprenticeship programs: career fair: report

SOURCE: Author

DIGEST:

This bill requires the Department of Industrial Relations (DIR) to evaluate the effectiveness of local educational agency career and college fair notification requirements to ensure students are being made aware of apprenticeship and preapprenticeship opportunities, and make recommendations on how to expand those opportunities.

ANALYSIS:

Existing law:

1. Establishes apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards (DAS) within DIR in any trade in the state or in a city or geographic area whenever the apprentice training needs justify the establishment.
2. Defines “apprentice” as a person at least 16 years of age who has entered into a written apprenticeship agreement with an employer or program sponsor.
3. Establishes preapprenticeship programs and charges DAS with developing a process to approve preapprenticeship programs and verify partnership with an apprenticeship program.
4. Requires school districts or schools planning to hold college or career fairs to notify each apprenticeship program in their county utilizing the database of approved apprenticeship programs published by DAS.
5. Requires the California Department of Education to annually encourage school districts to plan programs and activities that utilize the resources of fairs and youth leadership activities as an integral part of the vocational instructional program and career decision-making.
6. Defines “career fair” to mean an event where multiple private businesses, government agencies, university representatives, or career technical school representatives are invited by a school or school district to present career options or career technical education options for students.
7. Defines “college fair” to mean an event where multiple college or university representatives are invited by a school or school district to present college options to students.
8. Defines “schools,” for the purposes of the section this bill is written in, to mean public schools, including, but not limited to, charter schools and alternative schools.

This bill:

1. Requires DIR to evaluate the effectiveness of the requirement for schools and school districts to notify local apprenticeship programs prior to college and career fairs.
2. Requires DIR to submit a report to the Legislature, by January 1, 2026, on how to improve outreach to high school students regarding apprenticeship and preapprenticeship opportunities, as well as ways to expand preapprenticeships and incentivize businesses to offer them.

Background

Apprenticeships provide hands-on experience and curriculum with the intent of offering a pathway to family-sustaining careers. California has committed to apprenticeships in various industries as a strategy to further develop a lucrative and growing workforce. Preapprenticeship programs serve as a conduit to apprenticeship programs by preparing individuals to enter into and succeed in apprenticeship programs.

AB 643 (Ramos, Chapter 324, Statutes of 2021) required a school district or school to notify each apprenticeship program in the same county of a career or college fair it is planning to hold, with the intent to ensure pathways to high-wage and high-growth careers are not overlooked. SB 332 is a follow-up to that bill to assess whether the outreach requirements have been effective and explore what other opportunities can be helpful to expand preapprenticeships and incentivize businesses to offer them.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 4/25/23)

California State Association of Electrical Workers

California State Pipe Trades Council

Los Angeles Unified School District

Union Roofing Contractors Association

Western States Council Sheet Metal, Air, Rail and Transportation

OPPOSITION: (Verified 4/25/23)

None received

ARGUMENTS IN SUPPORT: According to the author, “Students should be presented with a full spectrum of future career options and how to access them. SB 332 would require the administration to evaluate the effectiveness of existing preapprenticeship and apprenticeship outreach functions of local educational agencies. It would also require DIR to make recommendations to the Legislature on how to improve outreach to students and expand these opportunities.

“Apprenticeships are a successful method of imparting technical and vocational skills and offering a pathway to in-demand, high-wage, high-growth careers. Outreach to, and coordination with, students is a critical step to ensure technical and vocational jobs that drive the state’s economy are adequately filled. The ‘earn and learn’ model of preapprenticeships and apprenticeships has proven to be very effective for those seeking training, as it also enables them to earn a wage while acquiring new skills.”

The author further states “As California sees new investments in the Green Economy, there is a need for skilled and trained individuals to enter into this

workforce. This bill would assist the Legislature in exploring more opportunities to recruit students into these high road job opportunities.”

Prepared by: Dawn Clover / L., P.E. & R. / (916) 651-1556

4/26/23 15:11:39

**** END ****

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Dave Cortese, Chair

2023 - 2024 Regular

Bill No: SB 332 Hearing Date: April 12, 2023

SUBJECT: Apprenticeship programs: career fair: report

KEY ISSUE

Should the Department of Industrial Relations (DIR) be required to evaluate the effectiveness of local educational agency career and college fair notification requirements to ensure students are being made aware of apprenticeship and preapprenticeship opportunities, and make recommendations on how to expand those opportunities?

ANALYSIS

Existing law:

1. Establishes apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards (DAS) within DIR in any trade in the state or in a city or geographic area whenever the apprentice training needs justify the establishment. (Labor Code §3070-3098)
   
2. Defines “apprentice” as a person at least 16 years of age who has entered into a written apprenticeship agreement with an employer or program sponsor. (Labor Code §3077)
   
3. Establishes preapprenticeship programs and charges DAS with developing a process to approve preapprenticeship programs and verify partnership with an apprenticeship program. (Labor Code §3100)
   
4. Requires school districts or schools planning to hold college or career fairs to notify each apprenticeship program in their county utilizing the database of approved apprenticeship programs published by DAS. (Labor Code §3074.2)
   
5. Provides that an apprenticeship program may be administered by a joint apprenticeship committee, unilateral management or labor apprenticeship committee, or an individual employer. (Labor Code §3075)
   
6. Establishes the Legislature’s recognition that all pupils need to be provided with opportunities to explore and make career choices and to seek appropriate instruction and training to support those choices. (Education Code §53086)
   
7. Requires the California Department of Education to annually encourage school districts to plan programs and activities that utilize the resources of fairs and youth leadership activities as an integral part of the vocational instructional program and career decision-making. (Education Code §51005)
   
8. Defines “career fair” to mean an event where multiple private businesses, government agencies, university representatives, or career technical school representatives are invited by a school or school district to present career options or career technical education options for students. (Labor Code §3074.2)
   
9. Defines “college fair” to mean an event where multiple college or university representatives are invited by a school or school district to present college options to students. (Labor Code §3074.2)
   
10. Defines “schools” to mean public schools, including, but not limited to, charter schools and alternative schools. (Labor Code §3074.2)

This bill:

1. Requires DIR to evaluate the effectiveness of the requirement for schools and school districts to notify local apprenticeship programs prior to college and career fairs.
   
2. Requires DIR to submit a report to the Legislature, by January 1, 2025, on how to improve outreach to high school students regarding apprenticeship and preapprenticeship opportunities, as well as ways to expand preapprenticeships and incentivize businesses to offer them.

COMMENTS

1. Background:

Apprenticeships provide hands-on experience and curriculum with the intent of offering a pathway to family-sustaining careers. California has committed to apprenticeships in various industries as a strategy to further develop a lucrative and growing workforce. Preapprenticeship programs serve as a conduit to apprenticeship programs by preparing individuals to enter into and succeed in apprenticeship programs. All apprenticeship and preapprenticeship programs must be registered with the DAS.

Assembly Bill 643 (Ramos - Chapter 324, Statutes of 2021) required a school district or school to notify each apprenticeship program in the same county of a career or college fair it is planning to hold, with the intent to ensure pathways to high-wage and high-growth careers are not overlooked. SB 332 is a follow-up to that measure to assess whether the outreach requirements have been effective and explore what other opportunities can be helpful to expand preapprenticeships and incentivize businesses to offer them.

2. Need for this bill?

According to the Author, “Students should be presented with a full spectrum of future career options and how to access them. SB 332 would require the administration to evaluate the effectiveness of existing preapprenticeship and apprenticeship outreach functions of local educational agencies. It would also require DIR to make recommendations to the Legislature on how to improve outreach to students and expand these opportunities.”

Apprenticeships are a successful method of imparting technical and vocational skills and offering a pathway to in-demand, high-wage, high-growth careers. Outreach to, and coordination with, students is a critical step to ensure technical and vocational jobs that drive the state’s economy are adequately filled. The “earn and learn” model of preapprenticeships and apprenticeships has proven to be very effective for those seeking training, as it also enables them to earn a wage while acquiring new skills.

The author further states “As California sees new investments in the Green Economy, there is a need for skilled and trained individuals to enter into this workforce. This bill would assist the Legislature in exploring more opportunities to recruit students into these high road job opportunities.”

3. Proponent Arguments

The Los Angeles Unified School District states the DIR recommendations required by this bill would help policymakers, apprenticeship centers, and employers improve the skilled workforce pipeline in Los Angeles and across the state.

4. Opponent Arguments:

None received

5. Prior Legislation:

AB 643 (Ramos, Chapter 324, Statutes of 2021) required schools or school districts planning to hold a college or career fair to notify each apprenticeship program in the same county of the date and location of the event.

AB 1558 (Ramos, 2019) was identical to AB 643. In his veto message, Governor Newsom stated “This bill requires local school districts or schools that are planning college or career fairs to notify each apprenticeship program in their county, utilizing information from the database of approved apprenticeship programs published by the Division of Apprenticeship Standards. Many schools and school districts already include apprenticeship programs as part of their career fair outreach. While the intentions of this bill are commendable, this bill could result in additional costs to schools, which are already under significant financial stress.”

SUPPORT

Los Angeles Unified School District

OPPOSITION

None received

-- END --