Author: Wendy Hillger
The U.S. Department of Labor has revised its rules under the Fair Labor Standards Act concerning overtime pay. As of December 1, 2016, the salary and compensation levels needed for white collar workers (executive, administrative, and professional categories) to be exempt from overtime compensation under federal law will more than double.
California employers need to be cautious, however, because California has a different salary threshold pegged to the state minimum wage that will increase over time. Likewise, California maintains a different test for determining whether an employee is engaged in duties that are exempt from the overtime rules. Hence, an employee may be exempt under federal law but not under California law. If you have questions, please call us at Ad Astra Law Group.