California's Motion Picture Industry Wage Regulations
Key Takeaways
| Category | Statistic |
|---|---|
| Minimum Wage (2024) | $16.00 per hour |
| Minimum Wage (2023) | $15.50 per hour |
| Minimum Wage for Employers with 26+ Employees (2022) | $15.00 per hour |
| Minimum Wage for Employers with 25 or Fewer Employees (2022) | $14.00 per hour |
| Learner's Minimum Wage | 85% of minimum wage during first 160 hours |
| Overtime Pay | 1.5 times regular rate after 8 hours/day or 40 hours/week; double pay after 12 hours/day |
| Alternative Workweek Schedule | Up to 10 hours/day within a 40-hour workweek without overtime |
| Meal Credit (2023) | Breakfast: $5.60, Lunch: $7.47, Dinner: $10.02 |
| Lodging Credit (2023) | Room alone: $72.88/week, Room shared: $60.16/week |
| Overtime for Minors | 1.5 times regular rate for 6th consecutive workday |
| Daily Overtime for Extra Players | 1.5 times rate for 9th and 10th hours; double rate after 10th hour |
| Penalties for Initial Violation | $50 per underpaid employee per pay period |
| Penalties for Subsequent Violations | $100 per underpaid employee per pay period |
| Meal Period Requirement | 30 minutes for work periods over 6 hours |
| Rest Period Requirement | 10 minutes net rest time per 4 hours worked |
| Rest Facilities | Separate area from toilet rooms |
| Temperature Standards | Minimum 68°F in resting areas |
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Table of Contents
Applicability of Order
- The order applies to all employees in the motion picture industry with specific exemptions for executive, administrative, and professional roles.
Definitions
- Clarifies key terms such as alternative workweek schedule, employer, employee, and specific industry roles.
Hours and Days of Work
- Details overtime pay provisions, alternative workweek schedules, and special rules for minors and extra players.
Minimum Wages
- Provides updated minimum wage rates effective January 1, 2024, and special rates for learners and small employers.
Reporting Time Pay
- Explains the pay requirements for employees who report to work but are not given sufficient work.
Licenses for Disabled Workers
- Outlines the process for obtaining licenses to pay disabled workers less than the minimum wage.
Records
- Mandates accurate record-keeping for employee information, including hours worked and wages paid.
Cash Shortage and Breakage
- Prohibits deductions from wages for cash shortages, breakage, or loss unless due to dishonesty or gross negligence.
Uniforms and Equipment
- Requires employers to provide and maintain required uniforms and tools.
Meals and Lodging
- Specifies conditions and maximum credits for employer-provided meals and lodging.
Meal Periods
- Establishes mandatory meal periods and penalties for missed meal periods.
Rest Periods
- Requires rest breaks based on total hours worked and additional breaks for strenuous activities.
Change Rooms and Resting Facilities
- Mandates the provision of suitable changing and resting facilities for employees.
Seats
- Requires suitable seating for employees when the nature of the work permits.
Temperature
- Standards for maintaining reasonable temperatures in work areas.
Elevators
- Requirements for elevator service in multi-story workplaces.
Exemptions
- Conditions and procedures for obtaining exemptions from certain provisions.
Filing Reports
- Requirements for filing accurate and timely reports as mandated by law.
Inspections
- Compliance with inspection protocols and access requirements.
Penalties
- Outline of penalties for violations, including fines and recovery of unpaid wages.
Separability
- Ensures the continuity of the order’s provisions even if parts are found invalid.
Posting of Order
- Employers must post the order in a visible area or make it available to employees.
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Introduction
Wage regulations in California’s motion picture industry can be daunting. This article aims to clarify the key aspects of the Industrial Welfare Commission Order No. 12-2001, which regulates wages, hours, and working conditions in this sector. Understanding these regulations is crucial for both employers and employees to ensure compliance and fair treatment. By shedding light on these important rules, we hope to foster a better working environment within the motion picture industry, ensuring that everyone is aware of their rights and responsibilities.
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Applicability of Order
The Industrial Welfare Commission Order No. 12-2001 applies to all employees in the motion picture industry, with specific exceptions. This comprehensive regulation ensures that employees are covered under the same protective measures, enhancing the fairness and uniformity of working conditions across the industry.
Exemptions
Executive Exemption: To qualify for the executive exemption, an employee must:
- Be involved in the management of the enterprise or a recognized department or subdivision.
- Regularly direct the work of two or more employees.
- Have the authority to hire or fire, or make significant recommendations regarding employment status changes.
- Exercise discretion and independent judgment regularly.
- Be primarily engaged in duties that meet the exemption criteria.
- Earn a monthly salary equivalent to at least twice the state minimum wage for full-time employment.
Administrative Exemption: An employee qualifies for the administrative exemption if they:
- Perform office or non-manual work related to management policies or general business operations, or functions in school administration.
- Regularly exercise discretion and independent judgment.
- Regularly assist a proprietor or another employee in an executive or administrative role.
- Work under general supervision on specialized tasks requiring training, experience, or knowledge.
- Are primarily engaged in duties that meet the exemption criteria.
- Earn a monthly salary equivalent to at least twice the state minimum wage for full-time employment.
Professional Exemption: To be eligible for the professional exemption, an employee must:
- Be licensed or certified by the State of California in recognized professions such as law, medicine, dentistry, optometry, architecture, engineering, teaching, or accounting, or be primarily engaged in a learned or artistic profession.
- Regularly exercise discretion and independent judgment in their duties.
- Earn a monthly salary equivalent to at least twice the state minimum wage for full-time employment.
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Key Terms
Alternative Workweek Schedule: An alternative workweek schedule refers to any regularly scheduled workweek requiring an employee to work more than eight (8) hours in a 24-hour period. This schedule must comply with the specific election procedures set forth in the order.
Employer and Employee Definitions:
- Employer: Any person or entity, including an agent or representative, who directly or indirectly employs or exercises control over the wages, hours, or working conditions of any person.
- Employee: Any person employed by an employer. This broad definition includes all individuals who are permitted or suffered to work by the employer.
Specific Industry Roles:
- Extra Player: An individual employed by an employer in the production of motion pictures to perform various tasks, including but not limited to being a general extra, stand-in, photographic double, sports player, silent bit, or dress extra. This category also covers extras employed in dancing, skating, swimming, diving, riding, driving, singing, or other similar actions, gestures, facial expressions, or pantomime.
- Outside Salesperson: A person, 18 years of age or older, who customarily and regularly works more than half of their working time away from the employer’s place of business. Their primary duty involves selling tangible or intangible items or obtaining orders or contracts for products, services, or the use of facilities.
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Hours and Days of Work
Daily Overtime
To ensure fair compensation, the Industrial Welfare Commission Order No. 12-2001 sets clear provisions and rates for overtime pay:
- Standard Workday: Eight (8) hours of labor constitutes a day’s work.
- Overtime Pay Rates:
- Employees are entitled to one and one-half (1.5) times their regular rate of pay for hours worked beyond eight (8) hours up to twelve (12) hours in a workday, and for the first eight (8) hours on the seventh consecutive day of work.
- Double the regular rate of pay is required for all hours worked beyond twelve (12) hours in a workday, and for all hours worked in excess of eight (8) hours on the seventh consecutive day of work.
Alternative Workweek Schedules
Employers may implement alternative workweek schedules without violating daily overtime provisions by following specific election procedures:
- Election Procedures:
- The proposed alternative workweek schedule must be presented in writing and designated as a regularly scheduled workweek.
- The schedule must be adopted by at least a two-thirds (2/3) vote of the affected employees in a secret ballot election conducted during regular working hours.
- Conditions:
- The schedule can include workdays exceeding eight (8) hours but not more than ten (10) hours within a 40-hour workweek without incurring overtime pay.
- Any work performed beyond the established schedule up to twelve (12) hours a day or beyond 40 hours per week must be compensated at one and one-half (1.5) times the employee’s regular rate of pay.
- Work beyond twelve (12) hours a day and any hours over eight (8) on non-scheduled workdays must be paid at double the regular rate.
Special Provisions
Special rules apply to minors and extra players to protect their welfare and ensure fair compensation:
- Minors:
- Minors aged 16 and 17 who are not required by law to attend school may work under the same conditions as adults but are entitled to one and one-half (1.5) times their regular rate of pay for hours worked on the sixth consecutive workday.
- Violations of child labor laws carry civil and criminal penalties, and employers must comply with additional restrictions on the employment of minors.
- Extra Players:
- Extra players are compensated for overtime at one and one-half (1.5) times their rate for the ninth and tenth work hours, and double their rate for hours worked beyond ten (10) hours.
- Weekly overtime for extra players is calculated by multiplying the regular hourly rate by 40 and adding one and one-half (1.5) times the regular rate for hours worked beyond 40 in a workweek.
- Provisions for daily and weekly overtime payments ensure that extra players receive fair compensation for extended work periods.
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Minimum Wages
Effective January 1, 2024, the Industrial Welfare Commission Order No. 12-2001 sets the following minimum wage rates for all employers:
- All Employers:
Special Rates
In addition to the standard minimum wage rates, special provisions are made for learners and small employers:
- Learners:
- Employees during their first 160 hours of employment in occupations where they have no previous similar or related experience may be paid not less than 85 percent of the minimum wage, rounded to the nearest nickel.
- Small Employers:
- Prior to January 1, 2023:
- Employers with 26 or more employees:
- Fifteen dollars ($15.00) per hour for all hours worked, effective January 1, 2022.
- Fourteen dollars ($14.00) per hour for all hours worked, effective January 1, 2021.
- Employers with 25 or fewer employees:
- Fourteen dollars ($14.00) per hour for all hours worked, effective January 1, 2022.
- Thirteen dollars ($13.00) per hour for all hours worked, effective January 1, 2021.
- Employers with 26 or more employees:
- Employees treated as employed by a single qualified taxpayer pursuant to Revenue and Taxation Code section 23626 are treated as employees of that single taxpayer.
- Prior to January 1, 2023:
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Reporting Time Pay
To ensure fair compensation for employees who report to work but are not provided with sufficient work, the Industrial Welfare Commission Order No. 12-2001 sets the following requirements:
- Partial Workday:
- Each workday an employee is required to report for work and does report, but is furnished less than half of their usual or scheduled day’s work, the employee shall be paid for half of the usual or scheduled day’s work. However, this pay shall not be less than two (2) hours nor more than four (4) hours at the employee’s regular rate of pay, which shall not be less than the minimum wage.
- Second Reporting:
- If an employee is required to report for work a second time in any one workday and is furnished less than two (2) hours of work on the second reporting, they shall be paid for two (2) hours at their regular rate of pay, which shall not be less than the minimum wage.
Exceptions
Certain circumstances exempt employers from the reporting time pay requirements:
- Threats to Employees or Property:
- Operations cannot commence or continue due to threats to employees or property, or when recommended by civil authorities.
- Public Utility Failures:
- Public utilities fail to supply electricity, water, or gas, or there is a failure in the public utilities or sewer system.
- Acts of God:
- The interruption of work is caused by an Act of God or other causes not within the employer’s control.
- Paid Standby Status:
- This section does not apply to an employee on paid standby status who is called to perform assigned work at a time other than their scheduled reporting time.
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Licenses for Disabled Workers
The Industrial Welfare Commission Order No. 12-2001 outlines specific procedures for obtaining licenses that allow employers to pay disabled workers less than the minimum wage. These licenses are intended to facilitate employment opportunities for individuals whose earning capacity is impaired by physical disability or mental deficiency. The process is as follows:
Joint Application:
- A license to pay less than the minimum wage may be issued upon a joint application by the employer and the employee, and the employee’s representative if any. This ensures that the interests of the disabled worker are represented and protected.
Nonprofit Organizations:
- A special license may be granted to nonprofit organizations such as sheltered workshops or rehabilitation facilities. These licenses set special minimum rates that enable the employment of disabled individuals without requiring individual licenses for each employee.
Renewal of Licenses:
- All licenses, including special licenses issued to nonprofit organizations, must be renewed on a yearly basis or more frequently at the discretion of the Division of Labor Standards Enforcement. This periodic renewal ensures that the conditions and needs of the disabled worker are regularly reviewed and reassessed.
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Records
The Industrial Welfare Commission Order No. 12-2001 mandates strict requirements for maintaining accurate employee records to ensure transparency and accountability:
- Required Information:
- Full name, home address, occupation, and social security number.
- Birth date, if under 18 years, and designation as a minor.
- Time records showing when the employee begins and ends each work period. Meal periods, split shift intervals, and total daily hours worked must also be recorded.
- Total wages paid each payroll period, including the value of board, lodging, or other compensation furnished to the employee.
- Total hours worked in the payroll period and applicable rates of pay.
- When a piece rate or incentive plan is in operation, piece rates or an explanation of the incentive plan formula must be provided to employees, and an accurate production record must be maintained by the employer.
- Language and Form:
- All required records must be in English and in ink or another indelible form, properly dated, showing month, day, and year.
- These records must be kept on file by the employer for at least three years at the place of employment or at a central location within the State of California.
Employee Access
Employees have the right to inspect their records under reasonable conditions:
- Availability:
- Records must be made readily available to the employee upon reasonable request.
- Inspection Conditions:
- Employees can inspect their records during regular business hours at the place of employment or a mutually agreed upon location.
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Cash Shortage and Breakage
The order sets clear rules for deducting pay for cash shortages, breakage, or loss of equipment to protect employees from unfair financial liability:
- Prohibited Deductions:
- Employers cannot make any deduction from the wage or require reimbursement from an employee for any cash shortage, breakage, or loss of equipment unless it can be shown that the shortage, breakage, or loss is caused by a dishonest or willful act, or by the gross negligence of the employee.
Economic Impact Concerns:
- Cost to Health Care Facilities: Opponents argue that the increased labor costs could strain health care facilities, particularly smaller ones, potentially leading to service cuts or closures. This concern is especially pronounced among rural hospitals and independent clinics that operate on tighter margins.
- State Budget Strain: There are fears that the significant increase in state health care expenditures, particularly through Medi-Cal, could strain California’s budget. Critics worry about the sustainability of these expenditures and the potential need for increased taxes or reallocation of funds from other critical areas.
Implementation Feasibility:
- Phased Implementation: Some legislators and industry stakeholders have debated the feasibility of the phased implementation schedule. Concerns revolve around whether facilities can realistically adjust to the mandated wage increases within the specified time frames without jeopardizing their financial stability.
- Waiver Program: The provision for a waiver program for facilities facing financial hardship has been both praised and critiqued. Supporters see it as a necessary flexibility, while opponents fear it could lead to widespread exemptions, undermining the law’s effectiveness.
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Uniforms and Equipment
Employers are responsible for providing and maintaining uniforms and equipment required for the job:
- Uniforms:
- When uniforms are required as a condition of employment, the employer must provide and maintain them. This includes wearing apparel and accessories of distinctive design or color.
- Note: This provision does not apply to protective apparel regulated by the Occupational Safety and Health Standards Board.
- Tools and Equipment:
- Employers must provide and maintain tools or equipment necessary for the performance of the job, except that an employee whose wages are at least two (2) times the minimum wage may be required to provide and maintain hand tools and equipment customarily required by the trade or craft.
- Note: This provision does not apply to apprentices regularly indentured under the State Division of Apprenticeship Standards or to protective equipment and safety devices on tools regulated by the Occupational Safety and Health Standards Board.
Deposits
Security deposits for uniforms and tools ensure the return of employer-provided items:
- Security Deposits:
- A reasonable deposit may be required as security for the return of items furnished by the employer. The employer must issue a receipt for such deposits.
- Deposits must be made pursuant to Section 400 and following of the Labor Code. Employers may deduct the cost of an item from the employee’s last paycheck if it is not returned, with prior written authorization from the employee.
- Deductions cannot be made for normal wear and tear, and all items furnished by the employer must be returned upon completion of the job.
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Meals and Lodging
Meal and Lodging Credits
The Industrial Welfare Commission Order No. 12-2001 allows employers to credit meals and lodging against the minimum wage under specific conditions:
- Maximum Allowable Credits:
- Lodging:
- Room occupied alone: $75.23 per week
- Room shared: $65.83 per week
- Apartment (two-thirds of ordinary rental value, but no more than $1,336.65 per month)
- Meals:
- Breakfast: $5.78
- Lunch: $7.97
- Dinner: $10.35
- These credits are effective as of January 1, 2024, and apply to all employers regardless of the number of employees.
- Lodging:
Conditions
Employers must meet specific requirements when providing meals and lodging to employees:
- Written Agreement:
- Meals or lodging may not be credited against the minimum wage without a voluntary written agreement between the employer and the employee.
- Meal Quality:
- Meals must be adequate, well-balanced servings of a variety of wholesome, nutritious foods.
- Lodging Standards:
- Lodging must be adequate, decent, and sanitary according to usual and customary standards. Employees shall not be required to share a bed.
- Usage:
- Deductions cannot be made for meals not received or lodging not used. If an employee must live at the place of employment or occupy quarters owned or controlled by the employer, rent cannot exceed the allowable values.
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Meal Periods
Break Requirements
Mandatory meal periods are required to ensure employees receive adequate breaks:
- Duration and Timing:
- No employer shall employ any person for a work period of more than six (6) hours without a meal period of not less than 30 minutes, nor more than one (1) hour.
- Subsequent meal periods must be called no later than six (6) hours after the termination of the preceding meal period.
- On-Duty Meal Periods:
- An “on-duty” meal period is permitted only when the nature of the work prevents an employee from being relieved of all duty. This requires a written agreement between the employer and employee, stating that the employee can revoke the agreement at any time in writing.
Penalties
Compensation for missed meal periods ensures compliance with break requirements:
- Penalty Compensation:
- If an employer fails to provide an employee with a meal period as required, the employer must pay the employee one (1) hour of pay at the employee’s regular rate of compensation for each workday that the meal period is not provided.
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Rest Periods
Rest Breaks
Rest periods are mandated to ensure employees have adequate breaks during their workday:
- Break Requirements:
- Employers must authorize and permit all employees to take rest periods, ideally in the middle of each work period.
- Rest periods are based on the total hours worked daily at the rate of ten (10) minutes net rest time per four (4) hours or major fraction thereof. No rest period is required for employees whose total daily work time is less than three and one-half (3.5) hours.
- Authorized rest period time is counted as hours worked for which there shall be no deduction from wages.
Special Provisions
Additional rest breaks are required for physically demanding roles to ensure employee well-being:
- Strenuous Activities:
- Swimmers, dancers, skaters, and other performers engaged in strenuous physical activities must have additional interim rest periods during periods of actual rehearsal or shooting.
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Change Rooms and Resting Facilities
Facilities Provided
The Industrial Welfare Commission Order No. 12-2001 requires employers to provide adequate facilities for employee comfort and privacy:
- Change Rooms:
- Employers must provide suitable lockers, closets, or equivalent for the safekeeping of employees’ outer clothing during working hours and their work clothing during non-working hours.
- When the job requires a change of clothing, change rooms or equivalent spaces must be provided to ensure employees can change in reasonable privacy and comfort. These rooms must be separate from toilet rooms and kept clean.
- Note: This provision does not apply to change rooms and storage facilities regulated by the Occupational Safety and Health Standards Board.
- Resting Facilities:
- Employers must provide suitable resting facilities in an area separate from the toilet rooms. These facilities must be available to employees during work hours for rest breaks.
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Seats
Seating Requirements
Employers are required to provide suitable seating for employees, considering the nature of their work:
- Provision of Seats:
- All working employees must be provided with suitable seats when the nature of the work reasonably permits the use of seats.
- Seating During Inactive Periods:
- When employees are not engaged in the active duties of their employment and the nature of the work requires standing, an adequate number of suitable seats must be placed in reasonable proximity to the work area. Employees must be permitted to use these seats when it does not interfere with the performance of their duties.
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Temperature
Work Area Temperature
Employers must maintain reasonable temperatures in work areas to ensure employee comfort:
- Temperature Standards:
- The temperature in each work area must provide reasonable comfort consistent with industry-wide standards for the nature of the process and the work performed.
- Excessive Heat or Humidity:
- If excessive heat or humidity is created by the work process, the employer must take all feasible means to reduce such excessive heat or humidity to a degree that provides reasonable comfort.
- If the nature of the employment requires a temperature of less than 60°F, a heated room must be provided for employees to retire to for warmth. This room must be maintained at not less than 68°F.
- Special Areas:
- A temperature of not less than 68°F must be maintained in toilet rooms, resting rooms, and change rooms during hours of use.
- Energy Guidelines:
- Federal and State energy guidelines prevail over any conflicting provisions of this section, ensuring compliance with broader regulatory standards.
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Elevators
Elevator Service: Requirements for providing elevator, escalator, or similar service in workplaces where employees work four or more floors above or below ground level.
- Standards: Ensure the service is consistent with industry-wide standards for the nature of the process and the work performed.
Exemptions
Exemption Process:
- Application: Employers or employees can apply for exemptions from certain provisions if enforcement would cause undue hardship without materially affecting employee welfare or comfort.
- Conditions: Exemptions must be approved by the Division after an investigation.
- Documentation: Exemptions must be in writing and may be revoked with reasonable notice.
Filing Reports
Report Requirements: Employers must file accurate and timely reports as required by the California Labor Code.
- Content: Reports must include detailed information on wages, hours, and working conditions.
Inspections
Inspection Protocols: Compliance with inspection requirements per the California Labor Code.
- Access: Employers must provide access to records and premises for inspections by authorized personnel.
Penalties
- Penalty Structure:
- Initial Violations: $50 for each underpaid employee per pay period, plus recovery of unpaid wages.
- Subsequent Violations: $100 for each underpaid employee per pay period, plus recovery of unpaid wages.
- Compensation: Affected employees receive payment of all recovered wages.
- Citations: The Labor Commissioner can issue citations for non-payment of wages, including overtime.
Separability
Legal Continuity: If any provision of the order is found invalid or unconstitutional, the remaining provisions continue in full effect.
- Clause: Ensures that the invalidity of a part does not affect the whole order.
Posting of Order
Posting Requirements: Employers must post a copy of the order in a conspicuous area frequented by employees.
- Accessibility: If posting is impractical, the order must be made available to employees upon request.
Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.
About The Author
Roger Wood
With a Baccalaureate of Science and advanced studies in business, Roger has successfully managed businesses across five continents. His extensive global experience and strategic insights contribute significantly to the success of TimeTrex. His expertise and dedication ensure we deliver top-notch solutions to our clients around the world.
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