BACKGROUND

New overtime laws went into effect January 1, so now is a good time to review your overtime policies. Most companies have positions classified as Salaried/Exempt, and it’s important to note that the Department of Labor (DOL) has changed the federal salary level minimum threshold for these positions. Until the end of 2019, the minimum threshold was $23,660 a year. As of January 1, the new federal threshold became $35,368 a year.

California passed its own minimum salary level requirements in January of 2019. For employers in California with 26 or more employees, the minimum salary level is $49,920 a year, and for employers with fewer than 26 employees, the minimum salary level is $45,760 a year. This means that any positions in California that are currently classified as Salaried/Exempt and making less than $49,920 or $45,760 respectively, should have been raised to that level or re-classified as Hourly/Non-exempt and been subject to overtime.

Our 2020 Overtime Laws Webinar February 12 covered all the moving parts, from new federal changes to a general recap of the Fair Labor Standards Act (FLSA).

Here’s a recording of the webinar, in case you’d like to play it back.


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EPIC offers this material for general information only. EPIC does not intend this material to be, nor may any person receiving this information construe or rely on this material as, tax or legal advice. The matters addressed in this document and any related discussions or correspondence should be reviewed and discussed with legal counsel prior to acting or relying on these materials.

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