State of California M E M O R A N D U M REFERENCE CODE: 2000-021 DATE: March 30, 2000 TO: Accounting Officers Personnel Officers Personnel Transactions Supervisors FROM: Department of Personnel Administration Labor Relations Division SUBJECT: Untimely Payment of Wages Shift Changes/Premium Pay Bargaining Units 12 and 13 CONTACT: Clarice Baker, Lois Cottros, or Olivia Hawkins, Personnel Management Technicians (916) 324-9381, CALNET 454-9381 FAX: (916) 327-1886 Email: ClariceBaker@dpa.ca.gov, LoisCottros@dpa.ca.gov, or OliviaHawkins@dpa.ca.gov As you may be aware, during the most recent round of bargaining, the State and International Union of Operating Engineers negotiated provisions relative to timely payment of wages and shift change premiums. The following explains procedures to be followed in adhering to these provisions (See 7.4 for BU 12 and 14.6 for BU 13): Untimely Payment A penalty for the untimely payment of regular wages shall be paid when (1) there are errors or delays in processing payroll documents; (2) the employee does not receive a check on payday; and (3) a salary advance is not issued within three workdays after payday for an amount close to the actual net pay (gross salary less deductions) in accordance with departmental policy. Therefore, when a revolving fund check is not issued within three workdays, the employer will pay to the employee 5 percent of the employee's base pay for that period, for each workday beyond the three-day grace period. The above provision does not apply to those employees who are on non-industrial disability insurance leave, industrial disability leave, or who are receiving worker's compensation payments. The request for payment shall be made through the claims process and departments may refer to the State Administrative Manual (SAM) for guidelines on processing payments as a claim. Shift Change When the employer fails to provide timely notice of a shift change as defined in the agreement, a premium payment may be required. Both short and temporary shift changes are defined as a change in the hours of work in a day and/or the days of work in a week. The following chart outlines the notice requirements and the premium penalty payments due employees for failure to provide timely notice of a shift change as defined in the agreement, by type of shift change. 1. TYPE OF SHIFT CHANGE Short shift change of less than 10 days Bargaining Unit 12 7.4a Bargaining Unit 13 14.6a NOTICE REQUIREMENT At least 24 hours prior to shift change PREMIUM TO BE PAID FOR FAILURE TO PROVIDE PROPER NOTICE One and one-half times the regular rate of pay for the entire first shift 2. TYPE OF SHIFT CHANGE Temporary shift change of 10 to 30 days Bargaining Unit 12 7.4b Bargaining Unit 13 14.6b NOTICE REQUIREMENT At least 3 working days notice PREMIUM TO BE PAID FOR FAILURE TO PROVIDE PROPER NOTICE One and one-half times the regular rate of pay for all hours worked on the temporary shift prior to passage of the three-day notice period. The request for payment for a short shift change and a temporary shift change as described above shall be made as a pay differential. Pay Differential #200 Short Shift/Temporary Shift Change - Units 12 and 13 is established in Pay Letter 00-08. If you have questions regarding these penalty payments, you may contact your department's Personnel Management Technician in the Policy and Operations Division at DPA. Michael T. Navarro Labor Relations Officer