BILL ANALYSIS Ó AB 67 Page 1 (Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 67 (Gonzalez) As Amended August 3, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |43-32 |(January 27, |SENATE: |22-14 |(August 29, | | | |2016) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: L. & E. SUMMARY: Enacts the "Double Pay on the Holiday Act of 2016," as specified. The Senate amendments: 1)Provide that this bill does not apply to a retail food facility unless it is a grocery establishment, or is located within a retail store establishment, or is located within a grocery store establishment and primarily sells food for offsite consumption. AB 67 Page 2 2)Provides that a "retail store establishment" includes a retail food facility if the retail food facility is located within a retail store establishment. 3)Provides that a "retail store establishment" does not include one located on an amusement park or in a retail, dining, and entertainment area under common control of the amusement park. 4)Provide that a "retail store establishment" does not include a new motor vehicle dealer or a ski resort. 5)Provides that a "grocery store establishment" does not include a store that occupies 5,000 square feet or less of floor space and that sells transportation fuels in conjunction with, and at the same physical location as, household food stuffs for offsite consumption. 6)Provides that a "grocery store establishment" includes a separate retail food facility that is located within a grocery store establishment and primarily sells food for offsite consumption. FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: This bill would enact the Double Pay on the Holiday Act of 2015 that would require an employer to pay at least two times the regular rate of pay to an employee for work on a family holiday, as defined. Supporters argue that this bill guarantees that employees are fairly compensated for the undue hardships associated with working on the traditional family holiday of Thanksgiving. They contend that the increasing commercialization of the holiday in AB 67 Page 3 recent years has forced workers to miss out on celebrating the holiday and spending time with their families in order to keep their jobs. In some cases, this work has become mandatory, forcing workers to give up their holiday or risk losing their jobs. Opponents argue that this bill will result in unavoidable cost increases for certain businesses. Opponents also argue that this bill would create a competitive disadvantage for "brick-and-mortar" stores. They state that this bill would unilaterally increase the cost of doing business only for those employers who have a physical presence in California, thereby automatically placing them at a competitive disadvantage with online companies and out-of-state businesses that would not be subject to this cost. Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0003800