CDF's Wage and Hour Litigation Taskforce team, Nancy "Niki" Lubrano, Brian E. Cole II and Osaama Saifi recently authored the article "How To Ensure Compliance With California Overtime Laws And Federal Salary Thresholds" for HR.com's July 2024 edition of Payroll, HRIS, Time & Attendance Excellence. This article provides an in-depth review of the criteria for exempt employee classification.
Article Highlights
- The U.S. Department of Labor has updated its Overtime Rule, increasing the minimum salary threshold for exempt employees.
- This change, effective from July 1, 2024, and again on January 1, 2025, affects businesses nationwide.
- California’s minimum salary for exempt status is higher than the federal standard.
Excerpt
"In California, it's essential for employers to understand that non-exempt employees are entitled to overtime for hours worked beyond 8 in a day or 40 in a week.
Designating an employee as a supervisor or manager and paying a fixed salary does not automatically exempt them from overtime requirements. To qualify for an exemption, the employee must meet specific criteria, including a minimum salary threshold, and fall within a designated exemption category.
The U.S. Department of Labor recently updated its Overtime Rule, which increases the federal minimum salary for exempt classification to $43,888. The updated rule takes effect on July 1, 2024. The minimum salary will increase again on January 1, 2025, to $53,656. The minimum annual salary test under California law remains higher than the federal salary test at $66,560. The list of employment classifications for overtime exemptions is limited. Here are the three most common classifications and an overview of the general requirements."
Click on the link to read the full article here.
Related Attorneys:
Niki Lubrano
Experienced in defending against all types of employment claims through trial on behalf of employers of all sizes. Lubrano takes an aggressive defense approach whether the case involves a single plaintiff alleging wrongful…
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Brian Cole II
In his counsel to California employers, Brian E. Cole II has extensive experience with employment litigation involving claims of wrongful termination, discrimination, harassment, retaliation, breach of contract, unfair…
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Osaama Saifi
For nearly a decade, Osaama Saifi has dedicated his practice to advising California employers. Saifi is an experienced litigator who has tried multiple jury trials and defended employers and company executives in litigation…
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