Pub. 4 2015-2016 Issue 3

10 San Diego Dealer T he new pay requirements detailed in AB 1513 continue to be a hot-button issue for dealers. We discussed them at length in our New Laws Seminars and included it in our 2015 Legislative Summary. We also sent an alert on December 22, 2015 regarding the pay plan revisions required by AB 1513. Based on some new information there is one more change CNCDA advises you make immediately. The California Labor Commissioner recently posted a series of explan- atory FAQs on its website in connection with AB 1513’s requirement of separate payment and reporting for Rest and Recovery periods. The Labor Commissioner’s new FAQ calculates the minimum hourly rate (average earnings) for Rest and Recovery periods using a work week, not a pay period, as the measuring period. These FAQ responses describe a process for permitting the employer to “true up” compensation at the end of the subsequent semi-monthly pay period, taking the position that an employer who chooses to pay on a semi-monthly basis must still calculate the average rate of pay for the purpose of paying the Rest and Recovery rate on a work week basis, even where the pay period may cross into multiple work weeks and vice-versa. In light of this interpretation, CNCDA is advising dealerships move to a weekly, or bi-weekly payroll for technicians so as to comply with the work week calculation requirements. The Association’s Labor and Employment Counsel, Fine, Boggs & Perkins, has prepared a weekly version of the compensation agreement and the calculator. We will refer to this newly modified Calculator as the 2016 Technician Compensation Plan Calculator – Weekly – you can find it by clicking here. We are also including the Technician Pay Plan, distributed on December 22, 2015, here. As with any sample, you should verify with legal counsel that it meets your operational needs and still complies with the law. If you choose to continue paying on a semi-monthly basis, it is recom- mended that you calculate overtime, as well as the average rate of pay for Rest and Recovery Periods, on a work week basis to avoid a problem with the Labor Commissioner’s specific new interpretation. If you have any questions regarding the attached 2016 Technician Compensation Plan Calculator –Weekly, or any other aspects of the new statute and its interpretation, please contact John Boggs at (650) 712-8908 or via email atJBoggs@Employerlawyers.com for further information or assistance. WEEKLY CALCULATIONS NOW RECOMMENDED TO COMPLY WITH AB 1513