Will California authorize an alternative wage or other qualifying relief from goat-herder wage and overtime obligations before Oct 1, 2026?
·PoliticsIf California authorizes an alternative wage or provides qualifying relief from goat herder wage and overtime obligations before Oct 1, 2026, then the market resolves to Yes.
A "Qualifying Action" means: A California statute has become law, whether by the Governor's signature, by passage over a gubernatorial veto under Article IV, Section 10(a) of the California Constitution, or by operation of Article IV, Section 10(b), and regardless of vehicle, including a policy bill, urgency statute, budget bill, budget trailer bill, or special session bill; A regulation finally approved by the California Office of Administrative Law and filed with the California Secretary of State, or an Industrial Welfare Commission wage order that has been amended or republished and has taken effect; A written regulation, binding directive, final order, or formal statewide enforcement policy issued by a California state agency, department, board, commission, or officer with authority over the subject matter, including but not limited to the Department of Industrial Relations, the Labor Commissioner and the Division of Labor Standards Enforcement, the Industrial Welfare Commission, the Employment Development Department, the Department of Food and Agriculture, the Department of Forestry and Fire Protection, and the Department of Finance. An opinion letter or official interpretation is included only if it binds the issuing body or expressly states that body's statewide enforcement position; An executive order or proclamation issued by the Governor of California; or A written order entered by a California state court or a United States federal court. Which has at least one of the following effects: It reenacts, revives, restores, or extends the alternative monthly wage authority formerly contained in California Labor Code Section 2695.4(a), or establishes an alternative to it; "Goat herder" means an individual employed to perform any of the duties described in former California Labor Code Section 2695.3(d), as that section read immediately before its repeal on July 1, 2026. Where an instrument described above defines goat herders or a comparable class differently, that instrument's definition governs for purposes of applying the Payout Criterion to that instrument. It provides that goat herders are eligible for the alternative monthly wage framework applicable to sheepherders under California Labor Code Sections 2695.1 and 2695.2, including by determining that "sheepherder" as used in California Labor Code Section 2695.2 encompasses goat herders; It establishes an alternative monthly wage, a special minimum wage, a modified overtime threshold, a modified compensable-hours rule, an exemption in whole or in part from minimum wage or overtime requirements, a safe harbor, or a limitation on damages or penalties (subject to the conditions set out in what would NOT satisfy the Payout Criterion), in each case applicable to goat herders or their employers; It directs that any portion of the minimum wage or overtime obligations otherwise applicable to California employers of goat herders not be enforced or collected, including by a formal written policy of enforcement forbearance; It provides employers of goat herders a tax credit, reimbursement, grant, subsidy, payment, or contract price adjustment expressly tied to goat herder minimum wage or overtime obligations; or It enjoins or prohibits the enforcement or collection of any portion of the minimum wage or overtime obligations otherwise applicable to California employers of goat herders, or declares those obligations wholly or partially inapplicable to goat herders. A stay entered solely on procedural grounds, including arbitration, venue, discovery, bankruptcy, or case management, is not a Qualifying Action unless the order itself bars enforcement or collection of the underlying wage or overtime obligation. And which: Applies statewide, or is generally available to employers of goat herders as a class, and is not limited to a named employer, a named individual, or the parties to an individual, non-class case; Was enacted, approved and filed, issued, or entered, as applicable, on or before the end of time period; Has qualifying provisions that have taken legal effect, or by their express terms apply to compensation for work performed, on or before the end of time period; Has qualifying provisions that have not been stayed, enjoined, suspended, invalidated, rescinded, or superseded as of the Expiration Date at the Expiration time; and Satisfies the Net Monthly Cost test described below. Subject to the foregoing requirements, an instrument is a Qualifying Action whether its relief is partial or complete, temporary or permanent, retroactive or prospective, and regardless of its label, vehicle, or stated duration. Net Monthly Cost test. An instrument satisfies the Net Monthly Cost test if the Net Monthly Cost under the instrument does not exceed the monthly minimum wage applicable to sheepherders under California Labor Code Section 2695.2 and Section 4(E) of Industrial Welfare Commission Wage Order No. 14-2001, plus 15%, as in effect on the last day of time period. An instrument that enjoins or prohibits the enforcement or collection of the applicable minimum wage and overtime obligations in their entirety is deemed to satisfy this test. Net Monthly Cost means the employer's minimum required wage and overtime cost of compensating a goat herder employed on a regularly scheduled 24-hour shift, seven days per week, for one calendar month, computed under the wage and overtime rules as modified, limited, or rendered unenforceable by the instrument, minus the monthly value of any credit, reimbursement, grant, subsidy, payment, or contract price adjustment legally available to the employer under the instrument. Where and to the extent the goat herder's compensation is determined under hourly wage and overtime rules, the following defaults apply, except to the extent the instrument itself legally modifies the number of compensable hours, the applicable hourly wage rate, or the applicable premium pay requirements, in which case the instrument's modified terms govern: all 24 hours of each shift are treated as compensable; the applicable rate is the California minimum wage in effect on the last day of time period; each workweek consists of 40 hours at the regular rate, 40 hours at one and one half times the regular rate, and 88 hours at two times the regular rate; and one calendar month equals 52/12 workweeks. Only benefits available as of right to all qualifying employers, without further appropriation, competitive award, application ranking, or agency discretion, are included in the computation. A lump sum benefit is prorated over the period to which it is expressly attributable, and a benefit that cannot be allocated on a per goat herder, per month basis is not included. An instrument consisting of a written order entered by a California state court or a United States federal court is tested by computing Net Monthly Cost under the obligations as limited by that instrument. The legal date of an instrument controls, and not the date on which it is published, posted, or reported. A statute is dated as of the date it becomes law; a regulation as of final approval by the Office of Administrative Law and filing with the Secretary of State, or as of another legally controlling adoption date; a wage order as of its stated effective date; an administrative directive, final order, or formal statewide enforcement position as of its official issuance; an executive order or proclamation as of its issuance; and a court order as of its entry.