Alternative Workweek-More Options for the Workplace
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For many years, California employers have been able to avoid overtime liability by offering employees, under certain situations, the option of working an alternative workweek schedule (an "AWS"). However the rules regarding such schedules were very rigid and the employer had few options in terms of the schedule it proposed to its workers.
Under a new amendment to the California Labor Code Section 511, both employers and employees have more options when it comes to working a non-traditional workweek. These changes can bring savings to the company and provide flexibility to employees who wish to work an AWS.
Under existing rules regarding the AWS, California employers were required to propose to all affected employees in an "identifiable work unit" either a single, fixed weekly schedule such as four ten hour days, or a menu of work schedules from which the employees could choose. However, under the current law, employers were not able to give employees the option of continuing to work the traditional eight hour day.
Under current law, employees were not able to swtich between the different available schedules easily.
The new amendment to the Labor Code which will become effective on May 21, 2009 corrects both of these flaws. Employees may now be given the option to work the traditional eight hour day and they may switch between the different proposed schedules on a weekly basis, with the employers consent.
Although this new lesgislation will undoubtedly provide substantial savings to employers who will be able to avoid costly overtime and will provide signficant flexibility to employees, employers should use caution before implementing an AWS. The rules regarding these types of arrangements are strictly enforced and somewhat complex. Any employer considering such an arrangement should consult with employment counsel in order to avoid the risk of overtime liability for an improerly implemented AWS.
Image:Businessweek
