SB 703 – Flexible Work Schedules

Senate Bill 703 by Sen. Roger Niello (R-Sacramento) was introduced to offer flexible work schedules in this state. SB 703 would amend Labor Code Section 510 and add Labor Code Section 511.5.

Section 1 of the bill would name the new law as the “California Workplace Flexibility Act of 2023.” Section 2 of the bill would provide that the requirement to pay overtime compensation to an employee would not apply to an employee-selected flexible work schedule.

Section 3 of the bill would add Labor Code Section 511.5 to provide that an individual nonexempt employee may work up to 10 hours per workday without any obligation on the part of the employer to pay an overtime rate of compensation. This can only occur if the employee requests this schedule in writing and the employer approves the request.

If an employee-selected flexible work schedule is adopted, then the employer is required to pay overtime at one and one-half times the employee’s regular rate of pay for all hours worked over 40 hours in a workweek or over 10 hours in a workday, whichever is greater. An employer may inform its employees that it is willing to consider an employee request to work an employee-selected flexible work schedule, but employers would be prohibited from inducing a request by promising an employment benefit or threatening an employment detriment.

Either the employee or the employer may discontinue the employee-selected flexible work schedule at any time by giving written notice to the other party. This new law would not apply to any employee covered by a valid collective bargaining agreement or employed by the state, a city, county, city and county, district, municipality, or other public, quasi-public, or municipal corporation, or any political subdivision of this state.

Finally, the Division of Labor Standards Enforcement would be required to enforce this section and the DLSE would have to adopt or revise regulations in a manner necessary to conform and implement this section.