What amount are Sheepherders owed as a result of AB 1066’s Overtime Phase-In?

REQUIRED MINIMUM MONTHLY COMPENSATION, INCLUDING REQUIRED OVERTIME PAY, FOR SHEEPHERDERS WORKING REGULARLY SCHEDULED

 24 HOUR SHIFTS, SEVEN DAYS A WEEK

SIZE OF EMPLOYER

YEAR Employs over 25 employees Employs 25 or fewer employees
2019 $2,133.52 monthly minimum wage plus $821.03 required overtime pay, for a total of $2,954.55 per month $1,955.74 monthly minimum wage plus $233.31 required overtime pay, for a total of $2,189.05 per month
2020 $2,311.24 monthly minimum wage plus $922.57 required overtime pay, for a total of $3,233.81 per month $2,133.52 monthly minimum wage plus $254.11 required overtime pay, for a total of $2,387.63 per month
2021 $2,488.97 monthly minimum wage plus $1,029.99 required overtime pay, for a total of $3,518.96 per month $2,311.24 monthly minimum wage plus $274.91 required overtime pay, for a total of $2,586.15 per month
2022 $2,666.68 monthly minimum wage plus $1,712.88 required overtime pay, for a total of $4,379.56 per month $2,488.97 monthly minimum wage plus $955.89 required overtime pay, for a total of $3,444.86 per month
2023 $2,775.48 monthly minimum wage plus $1,783.95 required overtime pay, for a total of $4,559.43 per month $2,775.48 monthly minimum wage plus $1,108.38 required overtime pay, for a total of $3,883.86 per month

NOTE:  (1) The laws and regulations which allow for payments in the above-specified amounts, which are below otherwise generally applicable state minimum wage and overtime requirements, only apply to sheepherders as defined in Section  (2)(N) of IWC Order 14-2001.
If any work other than that described in Section 2(N) is performed during a workweek, the employee shall instead be entitled to payment of the generally applicable state minimum wage and overtime requirements.  (IWC Order 14-2001, §1(F).)

(2)  The determination of whether an employer falls into the large or small employer category is based on the number of employees employed (regardless of specific job duties), not the number of sheepherders employed.

(3)  Calculations upon which the above-listed amounts are based are set out in the following pages.  Beyond 2023, future increases in the sheepherder monthly minimum wage, excluding overtime, are tied to and will reflect the percentage of any increases in the generally applicable state minimum wage.  Also, on 1/1/2024, the maximum number of non-overtime hours for sheepherders working for employers with 25 or fewer employees will decrease to 8.5 hours per day or 45 hours per week; with another decrease on 1/1/2025 to 8 hours per day or 40 hours per week, and such sheepherders will then become entitled to overtime compensation at double the regular rate of pay for all hours worked in excess of 12 in any workday, along with already applicable overtime requirements.

(4)  Sheepherders’ wages shall not be offset by employer-provided meals or lodging.

(5)  Employers of sheepherders must comply with all record keeping obligations set out in Section 7(A) and (B) of IWC Order 14-2001, and shall provide sheepherders with annual notice of their rights under state and federal law, as required under Section 7(D) of the Order.      

(1) YEAR – 2019      (STARTING 1/1/2019)

(A)   EMPLOYER SIZE --- EMPLOYS OVER 25 EMPLOYEES

Minimum monthly wage, excluding OT = $2,133.52
Regular Rate Calculation:  $2,133.52 X 12 = $25,602.24 ÷ 52 = $492.35/week ÷ 168 hours   = $2.93/hour regular rate  (1/2 R.R. = $1.47/hour)
Required OT Calculation:

  • Hours worked in excess of 9.5 per day or 55 per week must be paid at 1.5 X R.R.
  • First 8 hours worked on seventh workday in week must be paid at 1.5 X R.R.
  • All hours worked in excess of 8 on seventh workday in week payable at 2 X R.R.`     

168 total hours worked – 55 non-overtime hours worked = 113 OT hours worked, of which 16 OT hours worked on the 7th day of the week in excess of 8th hour that day.

113 OT hours – 16 hours payable at 2X regular rate = 97 hours payable at 1.5X R.R.

(OT premium for 97 hours @ 1.5 X R.R. = .5 X R.R.)     97 hours X $1.47 = $142.59

(OT premium for 16 hours @ 2X R.R. =  1 X R.R.)         16 hours X $2.93 = $  46.88

Total OT owed = $189.47 per week X 52 ÷ 12 = $821.03 OT per month

Minimum Monthly Wage PLUS Required OT Pay = $2,954.55 per month

(B)   EMPLOYER SIZE --- EMPLOYS 25 OR FEWER EMPLOYEES

Minimum monthly wage, excluding OT = $1,955.74

Regular Rate Calculation:  $1,955.74 X 12 = $23,468.88 ÷ 52 = $451.32/week ÷ 168 hours

= $2.69/hour regular rate  (1/2 R.R. = $1.35/hour)  

Required OT Calculation:

  • Only OT required is for seventh day worked in workweek, with first 8 hours worked that day payable at 1.5 X R.R., and additional hours worked that day at 2 X R.R.

(OT premium for 8 hours @ 1.5 X R.R. = .5 X R.R.)         8 hours X $1.35 = $10.80

(OT premium for 16 hours @ 2 X R.R.  = 1 X R.R.)        16 hours X $2.69 = $43.04

Total OT owed = $53.84 per week X 52 ÷ 12 = $233.31 per month

Minimum Monthly Wage PLUS Required OT Pay = $2,189.05 per month

(2) YEAR – 2020     (STARTING 1/1/2020)   

(A)   EMPLOYER SIZE --- EMPLOYS OVER 25 EMPLOYEES

Minimum monthly wage, excluding OT = $2,311.24
Regular Rate Calculation:  $2,311.24 X 12 = $27,734.88 ÷ 52 = $533.36/week ÷ 168 hours   = $3.17/hour regular rate  (1/2 R.R. = $1.59/hour)

Required OT Calculation:

  • Hours worked in excess of 9 per day or 50 per week must be paid at 1.5 X R.R.
  • First 8 hours worked on seventh workday in week must be paid at 1.5 X R.R.
  • All hours worked in excess of 8 on seventh workday in week payable at 2 X R.R.`     

168 total hours worked – 50 non-overtime hours worked = 118 OT hours worked, of which 16 OT hours worked on the 7th day of the week in excess of 8th hour that day.

118 OT hours – 16 hours payable at 2X regular rate = 102 hours payable at 1.5X R.R.

(OT premium for 102 hours @ 1.5 X R.R. = .5 X R.R.)   102 hours X $1.59 = $162.18

(OT premium for 16 hours @ 2X R.R. = 1 X R.R.)            16 hours X $3.17 = $ 50.72

Total OT owed = $212.90 per week X 52 ÷ 12 = $922.57 per month

Minimum Monthly Wage PLUS Required OT Pay = $3,233.81 per month

            (B)   EMPLOYER SIZE --- EMPLOYS 25 OR FEWER EMPLOYEES

Minimum monthly wage, excluding OT = $2,133.52

Regular Rate Calculation:  $2,133.52 X 12 = $25,602.24 ÷ 52 = $492.35/week ÷ 168 hours   = $2.93/hour regular rate  (1/2 R.R. = $1.47/hour)

Required OT Calculation:

  • Only OT required is for seventh day worked in workweek, with first 8 hours worked that day payable at 1.5 X R.R., and additional hours worked that day at 2 X R.R.

(OT premium for 8 hours @ 1.5 X R.R. = .5 X R.R.) 8 hours X $1.47 = $11.76

(OT premium for 16 hours @ 2 X R.R.  = 1 X R.R.)            16 hours X $2.93 = $46.88

Total OT owed = $58.64 per week X 52 ÷ 12 = $254.11 per month

Minimum Monthly Wage PLUS Required OT Pay =  $2,387.63 per month

(3) YEAR – 2021      (STARTING 1/1/2021)    

(A)   EMPLOYER SIZE --- EMPLOYS OVER 25 EMPLOYEES

Minimum monthly wage, excluding OT = $2,488.97

Regular Rate Calculation:  $2,488.97 X 12 = $29,867.64 ÷ 52 = $574.38/week ÷ 168 hours   = $3.42/hour regular rate  (1/2 R.R. = $1.71/hour)

Required OT Calculation:

  • Hours worked in excess of 8.5 per day or 45 per week must be paid at 1.5 X R.R.
  • First 8 hours worked on seventh workday in week must be paid at 1.5 X R.R.
  • All hours worked in excess of 8 on seventh workday in week payable at 2 X R.R.`     

168 total hours worked – 45 non-overtime hours worked = 123 OT hours worked, of which 16 OT hours worked on the 7th day of the week in excess of 8th hour that day.

123 OT hours – 16 hours payable at 2X regular rate = 107 hours payable at 1.5X R.R.

(OT premium for 107 hours @ 1.5 X R.R. = .5 X R.R.) 107 hours X $1.71 = $182.97

(OT premium for 16 hours @ 2X R.R. = 1 X R.R.) 16 hours X $3.42 = $ 54.72

Total OT owed = $237.69 per week X 52 ÷ 12 = $1,029.99 per month

Minimum Monthly Wage PLUS Required OT Pay = $3,518.96 per month

(B) EMPLOYER SIZE --- EMPLOYS 25 OR FEWER EMPLOYEES

Minimum monthly wage, excluding OT = $2,311.24
Regular Rate Calculation:  $2,311.24 X 12 = $27,734.88 ÷ 52 = $533.36/week ÷ 168 hours   = $3.17/hour regular rate  (1/2 R.R. = $1.59/hour)

Required OT Calculation:

  • Only OT required is for seventh day worked in workweek, with first 8 hours worked that day payable at 1.5 X R.R., and additional hours worked that day at 2 X R.R.

(OT premium for 8 hours @ 1.5 X R.R. = .5 X R.R.) 8 hours X $1.59 = $12.72

(OT premium for 16 hours @ 2 X R.R. = 1 X R.R.)              16 hours X $3.17 = $50.72

Total OT owed = $63.44 per week X 52 ÷ 12 = $274.91 per month

Minimum Monthly Wage PLUS Required OT Pay = $2,586.15 per month

(4) YEAR – 2022      (STARTING 1/1/2022)    

(A) EMPLOYER SIZE --- EMPLOYS OVER 25 EMPLOYEES

Minimum monthly wage, excluding OT = $2,666.68

Regular Rate Calculation:  $2,666.68 X 12 = $32,000.16 ÷ 52 = $615.39/week ÷ 168 hours   = $3.66/hour regular rate  (1/2 R.R. = $1.83/hour)

Required OT Calculation:

  • Hours worked in excess of 8 per day or 40 per week must be paid at 1.5 X R.R.
  • Hours worked in excess of 12 in any day must be paid at 2 X R.R.
  • First 8 hours worked on seventh workday in week must be paid at 1.5 X R.R.
  • All hours worked in excess of 8 on seventh workday in week payable at 2 X R.R`     

168 total hours worked – 40 non-overtime hours worked = 128 OT hours worked, of which:   88 hours are payable at 2 X R.R (12 hours per day X 6 days PLUS 16 hours on seventh day of the workweek), leaving 40 OT hours payable at 1.5 X R.R.

(OT premium for 40 hours @ 1.5 X R.R. = .5 X R.R.) 40 hours X $1.83 = $ 73.20

(OT premium for 16 hours @ 2X R.R. = 1 X R.R.) 88 hours X $3.66 = $322.08

Total OT owed = $395.28 per week x 52 ÷ 12 = $1,712.88 per month

Minimum Monthly Wage PLUS Required OT Pay = $4,379.56 per month

(B)   EMPLOYER SIZE --- EMPLOYS 25 OR FEWER EMPLOYEES

Minimum monthly wage, excluding OT = $2,488.97
Regular Rate Calculation:  $2,488.97 X 12 = $29,867.64 ÷ 52 = $574.38/week ÷ 168 hours   = $3.42/hour regular rate  (1/2 R.R. = $1.71/hour)
Required OT Calculation:

  • Hours worked in excess of 9.5 per day or 55 per week must be paid at 1.5 X R.R.
  • First 8 hours worked on seventh workday in week must be paid at 1.5 X R.R.
  • All hours worked in excess of 8 on seventh workday in week payable at 2 X R.R.`     

168 total hours worked – 55 non-overtime hours worked = 113 OT hours worked, of which 16 OT hours worked on the 7th day of the week in excess of 8th hour that day.

113 OT hours – 16 hours payable at 2X regular rate = 97 hours payable at 1.5X R.R.

(OT premium for 97 hours @ 1.5 X R.R. = .5 X R.R.) 97 hours X $1.71 = $165.87

(OT premium for 16 hours @ 2X R.R. =  1 X R.R.) 16 hours X $3.42 = $ 54.72

Total OT owed = $220.59 per week X 52 ÷ 12 = $955.89 per month

Minimum Monthly Wage PLUS Required OT Pay = $3,444.86 per month

(5) YEAR – 2023      (STARTING 1/1/2023)    

(A)   EMPLOYER SIZE --- EMPLOYS OVER 25 EMPLOYEES

Minimum monthly wage, excluding OT = $2,775.48

Regular Rate Calculation:  $2,775.48 X 12 = $33,305.76 ÷ 52 = $640.50/week ÷ 168 hours   = $3.81/hour regular rate  (1/2 R.R. = $1.91/hour)

Required OT Calculation:

  • Hours worked in excess of 8 per day or 40 per week must be paid at 1.5 X R.R.
  • Hours worked in excess of 12 in any day must be paid at 2 X R.R.
  • First 8 hours worked on seventh workday in week must be paid at 1.5 X R.R.
  • All hours worked in excess of 8 on seventh workday in week payable at 2 X R.R.`     

168 total hours worked – 40 non-overtime hours worked = 128 OT hours worked, of which: 88 hours are payable at 2 X R.R (12 hours per day X 6 days PLUS 16 hours on seventh day of the workweek), leaving 40 OT hours payable at 1.5 X R.R.

(OT premium for 40 hours @ 1.5 X R.R. = .5 X R.R.) 40 hours X $1.91 = $76.40

(OT premium for 16 hours @ 2X R.R. = 1 X R.R.) 88 hours X $3.81 = $335.28

Total OT owed = $411.68 per week x 52 ÷ 12 = $1,783.95 per month

Minimum Monthly Wage PLUS Required OT Pay = $4,559.43 per month

(B)   EMPLOYER SIZE --- EMPLOYS 25 OR FEWER EMPLOYEES

Minimum monthly wage, excluding OT = $2,775.48

Regular Rate Calculation:  $2,775.48 X 12 = $33,305.76 ÷ 52 = $640.50/week ÷ 168 hours = $3.81/hour regular rate  (1/2 R.R. = $1.91/hour)

Required OT Calculation:

  • Hours worked in excess of 9 per day or 50 per week must be paid at 1.5 X R.R.
  • First 8 hours worked on seventh workday in week must be paid at 1.5 X R.R.
  • All hours worked in excess of 8 on seventh workday in week payable at 2 X R.R.       

168 total hours worked – 50 non-overtime hours worked = 118 OT hours worked, of which 16 OT hours worked on the 7th day of the week in excess of 8th hour that day.

118 OT hours – 16 hours payable at 2X regular rate = 102 hours payable at 1.5X R.R.

(OT premium for 102 hours @ 1.5 X R.R. = .5 X R.R.) 102 hours X $1.91 = $194.82

(OT premium for 16 hours @ 2X R.R. =  1 X R.R.) 16 hours X $3.81 = $60.96

Total OT owed = $245.22 per week X 52 ÷ 12 = $1,108.38 per month

Minimum Monthly Wage PLUS Required OT Pay = $3,883.86 per month

September 2022