New overtime rule cut earnings for farm employees
By Bryan Little In 2016, when the California Legislature contemplated Assembly Bill 1066 to phase
Hill’s research, a spokesperson for the United Farm Workers offered a tepid de- fense of AB 1066: “We have an option to keep fighting for an agricultural economy in which workers are treated with dignity and have a real say.” Sadly, that is a unique piece of rhetorical art in defense of legislation that has result- ed in depriving agricultural workers of ac- tual earnings, which farm employees and their families depend on. A law that results in fewer working hours and less pay hardly offers anyone much dignity. It is also likely that the implementation of AB 1066 in the years after 2020 will show that its negative impacts have only been magnified in damage to rural economies and communities. These are communi- ties that have suffered the worst impacts of drought, flooding and COVID-19. They have faced housing shortages and high housing costs, healthcare shortages, un- derperforming public schools and under- funded public services. Following the implementation of AB 1066, emboldened labor advocates went on to pass AB 2183 in 2022. As a result, that union organizing legislation now deprives California agricultural employees of the right to a state-supervised, secret ballot elections. What will agricultural workers get? The opportunity to surrender 3% of their wages for union representation. Based on false promises of AB 1066, it is hard to imagine farm employees will see any rewards from AB 2183. Our agricultur- al workers and communities deserve bet- ter than dubious pledges and misguided legislation that fail to help anyone. (Bryan Little is director of employment policy for California Farm Bureau and chief operating officer of Farm Employers Labor Service, or FELS. He may be contacted at blittle@cfbf.com.)
out agricultural overtime rules in place since 1977, advocates for ag- riculture warned policymakers of adverse conse- quences for farm employers and em- ployees alike. But the bill’s au-
Bryan Little
thor, then-Assembly Member and now California Labor Federation President Lorena Gonzalez argued that the legis- lation would increase earnings and set a historic example for other states to follow. Seven years after Gov. Jerry Brown signed AB 1066 into law, the results are in. According to research from the University of California, Berkeley, agricultural work- ers have seen reduced work hours and less income since 2019 and 2020, when AB 1066 triggered the first adjustments to overtime rules for the largest, best-re- sourced California agricultural employers. Before AB 1066, farm employees were allowed to work up to 10 hours a day for six days a week before time-and-a-half over- time pay was required. In 2019, farms with 26 or more employ- ees were required under AB 1066 to pay overtime pay after 9 ½ hours in a workday or 55 hours in a workweek. Beginning in 2022, employers of 25 or more employees were required to pay overtime premiums after 8 hours in a day or 40 hours in a week. That standard is to kick in on Jan. 1, 2025, for employers with 25 or fewer workers. However, the eight-hour workday and 40-hour workweek fail to recognize the fundamental reality of agriculture. Farm
Supporters of Assembly Bill 1066 said California’s farm workforce would see higher paychecks under the new overtime law for agriculture. Instead, the bill resulted in decreased hours and income.
work is available to employees seasonal- ly—during planting, pruning, cultivation and harvesting—and for much of the year, not at all. The wisdom of allowing for overtime in agricultural employment after 10 hours a day for as many as six days in a workweek lies in the fundamental fact that agricul- tural employees need to work when work is available to them. For years, California wage-and-hour policy recognized this re- ality—until the passage of AB 1066. The research of Alexendra E. Hill of UC Berkeley confirms what the California Farm Bureau and other agriculture ad- vocates predicted at the time of AB 1066’s passage. The bill led to decreases in weekly working hours and earnings for California crop workers. The results are hardly an ex- ample for other states to follow. Hill noted that “these losses are consis- tent with employers restricting hours to avoid paying the higher overtime rates.”
Hill’s analysis is based on California agricultural employees’ self-report- ed working hours and earnings to the National Agricultural Worker Survey, a widely respected and long-running U.S. Department of Labor survey of agricultural employees’ working and living conditions. Hill’s analysis covers only the first two years of implementation of AB 1066. But, based on initial findings, employers in coming years will be hard-pressed to af- ford to pay overtime wages. Smaller farms can be expected to be even more careful to control overtime wage costs to remain competitive while producing in California. Any agricultural producer can tell you that farmers and ranchers don’t dictate the prices they can charge for their products. Markets that are beyond their control dic- tate that. As AB 1066 has added to produc- tion costs for agricultural producers, it has also harmed farm employees. Asked by a journalist for comment on
VOL. 51, NO. 1
January 3, 2024
AG ALERT ® weekly newspaper is an official publication of the CALIFORNIA FARM BUREAU
www.agalert.com www.cfbf.com
@cafarmbureau @cafarmbureau @cafarmbureau
@calfarmbureau
Board of Directors (District 1) Ronnie Leimgruber; (2) Scott Hudson; (3) Mark Lopez; (4) Kevin Merrill; (5) Kevin Robertson; (6) Joey Airoso; (7) Lorna Roush; (8) April England; (9) Jay Mahil; (10) Jan Garrod; (11) Joe Martinez; (12) Paul Sanguinetti; (13) Jake Wenger; (14) Joe Fischer; (15) Clark Becker; (16) Garrett Driver; (17) Johnnie White; (18) Daniel Suenram; (19) Taylor Hagata; (20) Jim Morris; (21) Ronald Vevoda; (Young Farmers & Ranchers Committee Chair) Trelawney Bullis. Advisory Members Jenny Holtermann, Chair, CFB Rural Health Department, Glenda Humiston, University of California Cooperative Extension. Letters to the editor: Send to agalert@cfbf.com or Ag Alert, Attn: Editor, 2600 River Plaza Drive, Sacramento, CA 95833. Include name, address, phone number, email address; 250-word limit.
Melanie Duval- Chief Marketing Officer
ADVERTISING: Brock Tessandori-Business Development Manager (916) 561-5585 Antonio Muniz- Sales Coordinator Classifieds: (916) 561-5570 2600 River Plaza Dr., Sacramento, CA 95833. Represented in the East and Midwest by J.L. Farmakis, Inc. Eastern office: Bill Farmakis 48 Topfield Rd., Wilton, CT 06897 (203) 834-8832; Fax: (203) 834- 8825. Midwest office: Russ Parker, P.O. Box 7, Albia, IA 52531 (641) 946-7646, Bob Brunker, 8209 NW 81st Ct., Kansas City, MO 64152 (816) 746-8814, Jennifer Saylor, 8426 N. Winfield Ave., Kansas City, MO 64153 (816) 912-2804, Laura Rustmann, 901 Lands End Cir, St. Charles MO 63304, (636) 238-8548. AG ALERT (issn 0161-5408) is published weekly except weeks of Memorial Day, July 4, Thanksgiving,
Christmas; and with exceptions, by the California Farm Bureau, 2600 River Plaza Dr., Sacramento CA 95833 (telephone: (916) 561-5570). Periodicals postage paid at Sacramento, California. POSTMASTER: Send address changes to AG ALERT, 2600 River Plaza Dr., Sacramento, CA 95833. The California Farm Bureau does not assume responsibility for statements by advertisers or for products advertised in AG ALERT nor does the Federation assume responsibility for statements or expressions of opinion other than in editorials or in articles showing authorship by an officer, di- rector, or employee of the California Farm Bureau Federation or its affiliates. No alcohol, tobacco or political advertising will be accepted. Shannon Douglass, President Shaun Crook, First Vice President Ron Peterson, Second Vice President
Peter Hecht- Chief Editor, Publications
Christine Souza- Assistant Editor
Ching Lee- Assistant Editor
Caleb Hampton- Assistant Editor
Shawn Collins- Production Designer
Paula Erath- Graphic Designer
GENERAL INFORMATION: (916) 561-5570
agalert@cfbf.com
Printed on Recycled Paper
BPA Business Publication Member
2 Ag Alert January 3, 2024
Powered by FlippingBook