California Labor &
Employment Law Blog
Jul 21, 2016

Lawmakers Introduce Legislation to Phase In New Overtime Exemption Regulations

Topics: New Laws & Legislation, Wage & Hour Issues

A group of Democratic lawmakers (yes, you read that right) have introduced legislation aimed at easing the sting of the new federal overtime exemption regulations that currently are slated to take effect December 1, 2016.  Under the new regulations, the minimum annual salary to qualify for exempt status increases over 100% from  $23,660 to $47,476.  Under proposed legislation dubbed the Overtime Reform and Enhancement Act, implementation of the new overtime regulations would be revised to gradually phase in the salary increase over three years, beginning with a 50% increase to $35,984 effective December 1, 2016.  In subsequent years, the minimum salary threshold would increase as follows:

  • $39,814 effective Dec. 1, 2017;
  • $43,645 effective Dec. 1, 2018;
  • $47,476 effective Dec. 1, 2019.

The legislation would also eliminate the regulations’ current provision for automatic triennial adjustments to the minimum salary.

Business groups have voiced support for the bill, while the Secretary of Labor quickly voiced strong opposition to the bill.  We will keep you posted with developments on this favorable bill.

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For over 25 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor

Robin Largent has a regular presence in California state and federal courts and has been lead defense counsel and appellate counsel for large and small California employers in litigation (and arbitration) ranging from individual discrimination and harassment claims to complex wage and hour representative and class actions. She also leads the firm’s appellate practice, having substantial experience and success handling appeals, writ petitions, and amicus briefs in both state and federal court on issues such as class certification (particularly in the wage and hour arena), manageability and due process concerns associated with class action trials, exempt/non-exempt misclassification issues, meal and rest break compliance, trade secret/unfair competition matters, and the scope of federal court jurisdiction under the Class Action Fairness Act.
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