Today, the Department of Labor (DOL) released its final regulations making changes to overtime exemptions under the Fair Labor Standards Act (FLSA). This means that, for the first time in many years, California employers must pay attention to the U.S. DOL’s changes and comply with overtime rules at both the federal and state levels. The U.S. DOL set a new salary threshold at $47,476 a year, higher than California’s current threshold, which is double the current state minimum wage. Since California’s minimum wage rose to $10 per hour in January of this year, the state’s overtime salary threshold has jumped to $41,600 a year. Because the federal level is higher, California employers will need to follow it to determine which employees are eligible for overtime pay. This rule goes into effect on December 1, 2016. Employee classifications should now be reexamined.
For any questions regarding the new DOL requirements or any other employment or labor relations matters, please contact any of our attorneys at Sagaser, Watkins & Wieland PC at (559) 421-7000.