In the case of Vranish v. Exxon Mobil Corp. the California Court of Appeals addressed the issue of whether or not a valid collective bargaining agreement excused an employer from paying “overtime” as defined in section 510 of the Labor Code.
Section 510(a) of the Labor Code provides that overtime shall be paid for any work in excess of eight (8) hours in one day, and more than 40 hours in one workweek. However, section 510(a) 1 & 2 state that the requirement to pay overtime does not apply to alternative workweek schedules or certain collective bargaining agreements under section 514.
The Plaintiffs in this case worked 12 hour shifts for 7 consecutive days, overlapping two workweeks, and then had seven days off. Their collective bargaining agreement provided premium wage rates for all overtime hours worked over 40 in a workweek or over 12 hours in a work day. The employees were compensated for any and all overtime according to the terms of their collective bargaining agreement.
The court found that not only was this an acceptable alternative workweek schedule, but because their collective bargaining agreement with Exxon established regular and overtime hours, premium pay for all hours worked, and the regular rate of pay was more than 30% of minimum wage, the exemption established under section 514 was applicable. As such, the employer was only obligated to pay the premium pay negotiated in the collective bargaining agreement which did not include daily overtime for hours worked in excess of eight hours in a day.
To read this case, click here: Vranish v. Exxon Mobil Corp.