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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