California Makes Petroleum-Refinery Rest-Period Exemption Permanent

Authority

Cal. Legislature

Citation

Stats. 2025, ch. 42

Effective Date

January 1, 2026

Assembly Bill 751, by Assembly Member Gipson, amends Labor Code section 226.75 to make permanent a rest-period exemption for certain safety-sensitive workers at petroleum facilities and to extend that exemption to refineries that produce fuel from alternative feedstock. The prior exemption was set to sunset on January 1, 2026; the bill removes that expiration. It takes effect January 1, 2026.

Background

Under existing California law, an employer generally may not require an employee to work during a mandated meal, rest, or recovery period, and must pay one additional hour of pay at the employee’s regular rate for each workday a required period is not provided. Rest periods ordinarily require that employees be relieved of all duties.

Labor Code section 226.75 created a limited exception to the “relieved of all duties” requirement for employees in safety-sensitive positions at petroleum facilities who must carry a communication device and respond to emergencies, or remain on premises to monitor and respond. That exemption was scheduled to end on January 1, 2026. Assembly Bill 751 amends section 226.75 to remove the sunset and broaden the covered facilities.

What the Law Changes

Assembly Bill 751 extends the section 226.75 rest-period exemption indefinitely rather than letting it expire. The exemption continues to apply to employees in safety-sensitive positions who must carry and monitor a communication device and respond to emergencies, or remain on employer premises to monitor and respond.

The bill also expands coverage to an “other refinery,” meaning an establishment that produces fuel through the processing of alternative feedstock. When a covered employee’s rest period is interrupted for an emergency, another rest period must be authorized reasonably promptly; if none can be taken, the employer must pay one hour of pay at the regular rate. The wage statement must itemize any such hours owed.

Scope and Conditions

The exemption reaches only employees subject to Industrial Welfare Commission Wage Order No. 1. It applies solely where the employee is covered by a valid collective bargaining agreement that expressly addresses wages, hours, working conditions, and rest periods, provides final and binding arbitration of rest-period disputes, sets premium overtime rates, and guarantees an hourly rate at least 30 percent above the state minimum wage.

Section 226.75 defines the key terms, including “petroleum facilities,” “other refinery,” “safety-sensitive position,” and “emergency.” The section does not apply to cases filed before its effective date.