I have recently been promoted to the position of division manager; it is a little different because I am assuming operational control of employees from another company (as well as mine). In our company everyone is salary exempt. The sections that are joining our team have a mix of exempt and non-exempt hourly workers.

I do not believe they are following all the California rules set for hourly employees; I am not too worried about it because the parent company is still responsible for administrative and logistical support so if they are in violation it is on their company and their lawyers to deal with.

My question though has to do with the overtime laws. I am being told that there is a recent amendment that allows an employee to work 4 tens instead of five 8’s without being paid overtime. I was told by the new supervisors that if everyone (hourly workers) votes on flex time it is not a violation of the California labor law. Is there any truth to this?

It's not recent and it's not "flex time". Flex time is when the employees are required to work some "core hours", then can come early earlier or later, as long as they get their hours in during the day/week. What I think you're talking about is the Alternative Work Week.
http://www.dir.ca.gov/IWC/IWCArticle4.pdf

Over time would still be enforce based on the hour set on your AWS, so on the 4-10’s.. any hour worked over 10 would be time and a-half, and over 12 would be double. BTW, you may have a slight dilemma with holiday schedule with AWS.

BTW, you may have a slight dilemma with holiday schedule with AWS. And vacations........and any other paid time off.......... :(

Thanks for the clarification. You are absolutely correct, it is an alternitive work week, I did some surfing on the net and recieved further guidance from the CA DOL web page.

Thanks again,

Now the plot thickens...If the employees elect to have an alternitive work week based on the provisions in, Ca LABOR CODE SECTION 500-558, can they also elect on when they want to work the alternitive work week. In other words out of four weeks can the employee determine that they only want to work the 10 hour days on on pay period (the first two weeks) and 8 hour days on the second pay period (second two weeks).

Or does the employer have the authority to have them work the alternitive work week when he/she has the need for them?

If the AWW is voted in, then that is the schedule and the employees who refuse to work it can be disciplined and terminated.