Bill > SB628

This bill addresses economic challenges in California's agricultural industry by creating a tax credit for employers who pay overtime wages to agricultural workers. Specifically, the bill allows employers covered by a specific wage order (Wage Order No. 14-2001) to claim a credit equal to the amount of overtime wages paid to employees in a given quarter. The credit is limited to the amount of employee withholdings the employer would have remitted to the Employment Development Department. The bill aims to support agricultural workers and employers by providing financial relief, noting the industry's struggles with drought, declining farm numbers, and economic pressures. The legislation was inspired by similar approaches in Oregon and New York and seeks to address unintended consequences of previous overtime legislation that may have reduced workers' overall earnings. The credit can be claimed on quarterly tax returns or through electronic funds transfer, and importantly, it does not change the employee's tax liability or require additional taxpayer funding. The bill defines overtime wages as the difference between an employee's regular and overtime rates of pay, and is intended to provide financial support to both agricultural employees and their employers during a challenging economic period for the industry.

Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB628