Amended IN Senate March 20, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 490Introduced by Senator BradfordFebruary 16, 2017An act to amend add Section 51 of 204.11 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTSB 490, as amended, Bradford. Director of Industrial Relations. Wages: Barbering and Cosmetology Act: licensees.Existing law establishes the Department of Industrial Relations for specified purposes and provides for its administration by the Director of Industrial Relations. requires, with certain exceptions, that all wages be paid twice during each calendar month on days designated in advance by the employer as the regular paydays and requires the minimum wage for all industries to be $10. Existing law makes it a crime for any person to willfully refuse to pay wages due and payable after demand has been made. The Barbering and Cosmetology Act provides for the licensure and regulation of barbers, cosmetologists, estheticians, manicurists, electrologists, and apprentices by the State Board of Barbering and Cosmetology, which is within the Department of Consumer Affairs.This bill would make a nonsubstantive change to that administration provision. require commission wages paid to any employee who is licensed under the Barbering and Cosmetology Act to be due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday and authorizes the employee and employer to agree to a commission in addition to the base hourly rate. The bill would provide that commission wages are wages paid to an employee who is licensed under that act for providing services for which a license is required when paid as a percentage or a flat sum portion of the sums paid to the employee by the client receiving the service, provided that the employee is paid a regular hourly rate of at least 2 times the state minimum wage rate in addition to commissions paid. By expanding the scope of an existing crime, this bill would result in a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 204.11 is added to the Labor Code, to read:204.11. Commission wages paid to any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code) are due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday. For any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code), wages that are paid to that employee for providing services for which such a license is required, when paid as a percentage or a flat sum portion of the sums paid to the employer by the client recipient of such service, constitute commissions, provided that the employee who is paid, in every pay period in which hours are worked, a regular hourly rate of at least two times the state minimum wage rate in addition to commissions paid. The employee and employer may agree to a commission in addition to the base hourly rate. Nothing in this section shall be interpreted to limit any rights or remedies otherwise available under state or federal law, including the right to overtime compensation.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SECTION 1.Section 51 of the Labor Code is amended to read:51.The department shall be conducted under the control of an executive officer known as the Director of Industrial Relations. The Director of Industrial Relations shall be appointed by the Governor with the advice and consent of the Senate and hold office at the pleasure of the Governor and shall receive an annual salary provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code. Amended IN Senate March 20, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 490Introduced by Senator BradfordFebruary 16, 2017An act to amend add Section 51 of 204.11 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGESTSB 490, as amended, Bradford. Director of Industrial Relations. Wages: Barbering and Cosmetology Act: licensees.Existing law establishes the Department of Industrial Relations for specified purposes and provides for its administration by the Director of Industrial Relations. requires, with certain exceptions, that all wages be paid twice during each calendar month on days designated in advance by the employer as the regular paydays and requires the minimum wage for all industries to be $10. Existing law makes it a crime for any person to willfully refuse to pay wages due and payable after demand has been made. The Barbering and Cosmetology Act provides for the licensure and regulation of barbers, cosmetologists, estheticians, manicurists, electrologists, and apprentices by the State Board of Barbering and Cosmetology, which is within the Department of Consumer Affairs.This bill would make a nonsubstantive change to that administration provision. require commission wages paid to any employee who is licensed under the Barbering and Cosmetology Act to be due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday and authorizes the employee and employer to agree to a commission in addition to the base hourly rate. The bill would provide that commission wages are wages paid to an employee who is licensed under that act for providing services for which a license is required when paid as a percentage or a flat sum portion of the sums paid to the employee by the client receiving the service, provided that the employee is paid a regular hourly rate of at least 2 times the state minimum wage rate in addition to commissions paid. By expanding the scope of an existing crime, this bill would result in a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES Amended IN Senate March 20, 2017 Amended IN Senate March 20, 2017 CALIFORNIA LEGISLATURE 20172018 REGULAR SESSION Senate Bill No. 490 Introduced by Senator BradfordFebruary 16, 2017 Introduced by Senator Bradford February 16, 2017 An act to amend add Section 51 of 204.11 to the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGEST ## LEGISLATIVE COUNSEL'S DIGEST SB 490, as amended, Bradford. Director of Industrial Relations. Wages: Barbering and Cosmetology Act: licensees. Existing law establishes the Department of Industrial Relations for specified purposes and provides for its administration by the Director of Industrial Relations. requires, with certain exceptions, that all wages be paid twice during each calendar month on days designated in advance by the employer as the regular paydays and requires the minimum wage for all industries to be $10. Existing law makes it a crime for any person to willfully refuse to pay wages due and payable after demand has been made. The Barbering and Cosmetology Act provides for the licensure and regulation of barbers, cosmetologists, estheticians, manicurists, electrologists, and apprentices by the State Board of Barbering and Cosmetology, which is within the Department of Consumer Affairs.This bill would make a nonsubstantive change to that administration provision. require commission wages paid to any employee who is licensed under the Barbering and Cosmetology Act to be due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday and authorizes the employee and employer to agree to a commission in addition to the base hourly rate. The bill would provide that commission wages are wages paid to an employee who is licensed under that act for providing services for which a license is required when paid as a percentage or a flat sum portion of the sums paid to the employee by the client receiving the service, provided that the employee is paid a regular hourly rate of at least 2 times the state minimum wage rate in addition to commissions paid. By expanding the scope of an existing crime, this bill would result in a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason. Existing law establishes the Department of Industrial Relations for specified purposes and provides for its administration by the Director of Industrial Relations. requires, with certain exceptions, that all wages be paid twice during each calendar month on days designated in advance by the employer as the regular paydays and requires the minimum wage for all industries to be $10. Existing law makes it a crime for any person to willfully refuse to pay wages due and payable after demand has been made. The Barbering and Cosmetology Act provides for the licensure and regulation of barbers, cosmetologists, estheticians, manicurists, electrologists, and apprentices by the State Board of Barbering and Cosmetology, which is within the Department of Consumer Affairs. This bill would make a nonsubstantive change to that administration provision. require commission wages paid to any employee who is licensed under the Barbering and Cosmetology Act to be due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday and authorizes the employee and employer to agree to a commission in addition to the base hourly rate. The bill would provide that commission wages are wages paid to an employee who is licensed under that act for providing services for which a license is required when paid as a percentage or a flat sum portion of the sums paid to the employee by the client receiving the service, provided that the employee is paid a regular hourly rate of at least 2 times the state minimum wage rate in addition to commissions paid. By expanding the scope of an existing crime, this bill would result in a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. ## Digest Key ## Bill Text The people of the State of California do enact as follows:SECTION 1. Section 204.11 is added to the Labor Code, to read:204.11. Commission wages paid to any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code) are due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday. For any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code), wages that are paid to that employee for providing services for which such a license is required, when paid as a percentage or a flat sum portion of the sums paid to the employer by the client recipient of such service, constitute commissions, provided that the employee who is paid, in every pay period in which hours are worked, a regular hourly rate of at least two times the state minimum wage rate in addition to commissions paid. The employee and employer may agree to a commission in addition to the base hourly rate. Nothing in this section shall be interpreted to limit any rights or remedies otherwise available under state or federal law, including the right to overtime compensation.SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SECTION 1.Section 51 of the Labor Code is amended to read:51.The department shall be conducted under the control of an executive officer known as the Director of Industrial Relations. The Director of Industrial Relations shall be appointed by the Governor with the advice and consent of the Senate and hold office at the pleasure of the Governor and shall receive an annual salary provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code. The people of the State of California do enact as follows: ## The people of the State of California do enact as follows: SECTION 1. Section 204.11 is added to the Labor Code, to read:204.11. Commission wages paid to any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code) are due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday. For any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code), wages that are paid to that employee for providing services for which such a license is required, when paid as a percentage or a flat sum portion of the sums paid to the employer by the client recipient of such service, constitute commissions, provided that the employee who is paid, in every pay period in which hours are worked, a regular hourly rate of at least two times the state minimum wage rate in addition to commissions paid. The employee and employer may agree to a commission in addition to the base hourly rate. Nothing in this section shall be interpreted to limit any rights or remedies otherwise available under state or federal law, including the right to overtime compensation. SECTION 1. Section 204.11 is added to the Labor Code, to read: ### SECTION 1. 204.11. Commission wages paid to any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code) are due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday. For any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code), wages that are paid to that employee for providing services for which such a license is required, when paid as a percentage or a flat sum portion of the sums paid to the employer by the client recipient of such service, constitute commissions, provided that the employee who is paid, in every pay period in which hours are worked, a regular hourly rate of at least two times the state minimum wage rate in addition to commissions paid. The employee and employer may agree to a commission in addition to the base hourly rate. Nothing in this section shall be interpreted to limit any rights or remedies otherwise available under state or federal law, including the right to overtime compensation. 204.11. Commission wages paid to any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code) are due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday. For any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code), wages that are paid to that employee for providing services for which such a license is required, when paid as a percentage or a flat sum portion of the sums paid to the employer by the client recipient of such service, constitute commissions, provided that the employee who is paid, in every pay period in which hours are worked, a regular hourly rate of at least two times the state minimum wage rate in addition to commissions paid. The employee and employer may agree to a commission in addition to the base hourly rate. Nothing in this section shall be interpreted to limit any rights or remedies otherwise available under state or federal law, including the right to overtime compensation. 204.11. Commission wages paid to any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code) are due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday. For any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code), wages that are paid to that employee for providing services for which such a license is required, when paid as a percentage or a flat sum portion of the sums paid to the employer by the client recipient of such service, constitute commissions, provided that the employee who is paid, in every pay period in which hours are worked, a regular hourly rate of at least two times the state minimum wage rate in addition to commissions paid. The employee and employer may agree to a commission in addition to the base hourly rate. Nothing in this section shall be interpreted to limit any rights or remedies otherwise available under state or federal law, including the right to overtime compensation. 204.11. Commission wages paid to any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code) are due and payable at least twice during each calendar month on a day designated in advance by the employer as the regular payday. For any employee who is licensed pursuant to the Barbering and Cosmetology Act (Chapter 10 (commencing with Section 7301) of Division 3 of the Business and Professions Code), wages that are paid to that employee for providing services for which such a license is required, when paid as a percentage or a flat sum portion of the sums paid to the employer by the client recipient of such service, constitute commissions, provided that the employee who is paid, in every pay period in which hours are worked, a regular hourly rate of at least two times the state minimum wage rate in addition to commissions paid. The employee and employer may agree to a commission in addition to the base hourly rate. Nothing in this section shall be interpreted to limit any rights or remedies otherwise available under state or federal law, including the right to overtime compensation. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. ### SEC. 2. The department shall be conducted under the control of an executive officer known as the Director of Industrial Relations. The Director of Industrial Relations shall be appointed by the Governor with the advice and consent of the Senate and hold office at the pleasure of the Governor and shall receive an annual salary provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code.