ACSS Sponsored Legislation Heads to Governor’s Desk

Assembly Bill 1137 (Jones-Sawyer) has passed the state Legislature and is on its way to the governor’s desk. If signed into law, this ACSS sponsored bill would provide excluded employees required to work on six listed holidays with “premium holiday pay” and would make changes in the Merit Salary Adjustment process to provide certainty for the timing of when an MSA for an excluded employee is approved or denied.

Currently, when an excluded employee is required to work on January 1, Memorial Day, July 4, Labor Day, Thanksgiving, or Christmas, they receive straight-time pay plus 8 hours of Holiday Credit. When rank-and-file employees work those same “premium holidays”, they are paid at one and ½ times their salary rate plus 8 hours of Holiday Credit. AB 1137 would amend the law to require the same premium holiday pay for excluded employees. WWG 2 employees (eligible for overtime) would receive one and one-half (1½) times their salary rate for all hours worked on the holiday and 8 hours of Holiday Credit, and WWG E and SE employees (not eligible for overtime pay) would receive the equivalent premium compensation in leave credits.

Currently, the state employer is required to notify rank-and-file employees of the denial of a merit salary adjustment ten working days before the adjustment would take effect. The state is not required to provide similar notification to excluded employees, meaning that MSAs can be denied at any time, even after the expected effective date. AB 1137 would require notification of an MSA denial for an excluded employee ten working days prior to the effective date.

ACSS appreciates the support of the Legislature for these important issues affecting excluded employees however, these two equitable changes will not be implemented unless signed into law by Governor Newsom. ACSS’ staff and legislative advocates are working with the Administration and CalHR in an attempt to overcome the Department of Finance’s current opposition to this bill, which is based mainly on ongoing costs to the state budget. The governor has until September 30, 2024 to sign or veto AB 1137.