By Jeff Mason and Adam LeePublished May 16, 2017 10:00:54In a major victory for labor and the electric utility industry, the California Department of Finance and Insurance has approved a new overtime rule that would give employees the ability to collect overtime for work that does not require any paid sick time.
The proposed rule is expected to create $10 million in revenue to fund energy efficiency and renewable energy programs and create more than 4,500 new jobs, according to the department’s website.
The rule is also expected to reduce overall greenhouse gas emissions by reducing energy consumption and reducing electricity usage, according the agency.
The proposal has been a long time coming, but the state’s Labor Department has been pushing for a rule that allows overtime pay to be earned regardless of the hours worked.
Under the new overtime rules, workers would be eligible to collect up to a 50 percent wage discount for overtime work, and up to 60 percent for all hours worked beyond the 45-hour workweek.
This is the second time that California has extended overtime pay benefits to overtime workers.
The overtime rule also will expand the definition of paid sick leave and allow employees to use paid sick days if the sick leave was necessary to help treat a serious illness or injury.
The state also announced it will pay an additional $5 million to workers for sick time to be used for child care or transportation needs.
California is one of several states that have extended overtime benefits to hourly workers in the past two years.
The state’s new overtime law would also be in line with those in several other states that allow overtime pay.
In California, the rule allows overtime paid for work performed for less than 40 hours per week, including weekends, statutory holidays, and federal holidays.