S2992

An Act concerning air carrier employees and overtime and supplementing P.L.1966, c.113 (C.34:11-56a et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. As used in this section:

“Air carrier employee” means an employee, non-union or union, where applicable labor agreements permit, who operates in a phase of air carrier employment which operates on a seven day a week, 24 hour-a-day basis and whose normal work is scheduled on a seven day a week, 24 hour-a-day basis. “Air carrier employee” includes direct employees of air carriers, but does not include any independent contractors or employees of independent contractors with which an air carrier contracts.

b. Notwithstanding any law or regulation to the contrary, every employer shall pay each of its non-exempt air carrier employees at 1 1/2 times the employee’s regular hourly wage for each hour of working time in excess of 40 hours in any week, except:

(1) rescheduled time off may be granted in exchange for overtime worked by air carrier employees in the following situations:

(a) at the employee’s request;

(b) the employer determines that the workload demands permit the employee’s absence; or

(2) an air carrier employee may elect, at the employee’s sole discretion, to be paid at the employee’s regular hourly wage rate for all hours worked in excess of 40 hours in a week as a result of an employee-initiated shift trade under a collective bargaining agreement. An air carrier shall not be liable to pay an employee at 1 1/2 times the employee’s regular hourly wage for any hours in excess of 40 hours in any week that are the result of an employee-initiated shift trade pursuant to this paragraph.

2. This act shall take effect on the first day of the second month next following enactment.

STATEMENT

This bill provides for certain exceptions to regular overtime rates for air carrier employees.

Under current regulations promulgated by the Department of Labor and Workforce Development, air carrier employees are required to be paid overtime for all hours worked in excess of 40 hours in a week, except in certain circumstances that allow employees to receive rescheduled time off instead of overtime pay. This bill codifies those current regulations, and also provides that employees may elect to be paid at the employee’s regular hourly wage for overtime that results from a shift trade.

Specifically, the bill requires every employer to pay each of its non-exempt air carrier employees at 1 1/2 times the employee’s regular hourly wage for each hour of working time in excess of 40 hours in any week, except:

(1) rescheduled time off may be granted in exchange for overtime worked by air carrier employees at the employee’s request; when the employer determines that workload demands permit the employee’s absence; or the rescheduled time off is taken within specified periods; and

(2) an air carrier employee may elect, at the employee’s sole discretion, to be paid at the employee’s regular hourly wage rate for all hours worked in excess of 40 hours in a week as a result of an employee-initiated shift trade under a collective bargaining agreement. The bill provides that an air carrier shall not be liable to pay an employee at 1 1/2 times the employee’s regular hourly wage for any hours in excess of 40 hours in any week that are the result of an employee-initiated shift trade pursuant to this paragraph.

This bill is meant to address a recent collective bargaining agreement that effectively banned shift trades for air carrier employees in states that require overtime payments for employees working in excess of 40 hours per week under state or local law. By allowing air carrier employees to be paid their regular hourly wage rate for hours worked in excess of 40 hours in a week as a result of an employee-initiated shift trade under a collective bargaining agreement, employees will be able to enjoy the benefits of shift trades while honoring the collective bargaining agreement.