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New Employment Laws Affecting California Employers Employee Compensation Part II

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2 – Possible Updated Federal Minimum Salary Threshold For Overtime Exemptions. Effective December 1, 2016, the Federal Department of Labor issued revised regulations increasing the minimum salary requirements for the Administrative and White Collar Overtime Exemptions from $455 per week ($23,660 annually) to $913 per week ($47,476 annually).

However, on November 22, 2016, in a lawsuit brought by twenty-one states, a federal judge issued a preliminary injunction temporarily staying implementation of the new federal regulation. The new regulation is now on hold, pending judicial review. Implementation of the increased federal minimum salary threshold is on hold, and will likely not be resolved for some time.

Recommended Action: Keeping up with applicable wage and hour law is critical to avoiding future employee claims for unpaid wages. Employers are urged consult with an employment attorney, and with your payroll company to ensure ongoing compliance with these rapidly changing laws.

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