State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2002-009

  DATE:
  February 14, 2002

  TO:
  Employee Relations Officers
  Personnel Officers
  Personnel Transactions Supervisors

  FROM:
  Department of Personnel Administration
  Labor Relations Division

  SUBJECT:
  California Labor Code 204.3 - Department of Industrial 
  Relations Determination

  CONTACT:
  Julie Chapman, Labor Relations Officer
  (916) 324-9420
  FAX: (916) 322-0765
  Email: JulieChapman@dpa.ca.gov


  During the 2001 negotiations, the Department of Personnel 
  Administration and the California State Employees 
  Association agreed to request an opinion from the 
  Department of Industrial Relations (DIR) as to whether 
  California Labor Code, Section 204.3 is applicable to 
  employees of the State of California.
  
  Labor Code, Section 204.3 provides limitations to the 
  employer's ability to utilize compensating time off in lieu 
  of cash payment for hours worked over 40 hours in a work 
  week (i.e., overtime compensation).  However, subsection 
  (h) provides that Section 204.3 shall not apply to an 
  employee that is exempt from the overtime provision of the 
  California Wage Order.
  
  Attached is the letter from the Director of the DIR, which 
  confirms that State employees are exempt from the overtime 
  provisions of the California Wage Order and thus, exempt 
  from Section 204.3 of the California Labor Code.  Also 
  attached is a copy of Labor Code, Section 204.3.
  
  If you have any questions regarding this issue, please 
  contact Julie Chapman, Labor Relations Officer, at (916) 
  324-9420.
  
  Gloria Moore Andrews 
  Chief, Labor Relations Division
  
  
  Attachments will be distributed via mail.