Re: Recent Action of the California Industrial Welfare Commission

IMS has reviewed in depth California AB60 and the recent action taken with the "Interim Wage Order" issued January 28, 2000 for all employees currently covered by California Wage Orders.

At this juncture, due to the vagueness of the language in AB60, we have no immediate plan to change our company policy regarding overtime for computer consultants. Public hearings are scheduled to be held and subsequent clarification of the legislation should be made. It does appear that this new law was not intended to affect hourly computer consultants. This understanding has been reached through our own legal review and from feedback obtained from the sponsoring legislators.

Should the hearings result in the re-classification of computer contractors to non-exempt for overtime, then we will, of course have to bill our clients the additional cost of any overtime worked. In the interim, we suggest that overtime worked by IMS consultants over the next few months be minimized and only worked with prior client authorization.

Back