CalChamber White Paper: What California Employers Need to Know About the New Federal Overtime Rule

The California Chamber of Commerce has made available a free white paper that covers the new federal overtime rule, its effects on how California employers pay their employees, and how employers can prepare for the change.

Until recently, California employers were generally not concerned with federal overtime requirements because California’s duties and salary tests for certain key exemptions were more stringent than federal requirements.

That changes as of December 1, 2016, when the federal salary requirement for the administrative, executive and professional exemptions will exceed California’s salary test. When state and federal overtime laws apply, employers must follow whichever is more protective of employees.

What does this new law mean for California employers?  Do you increase salaries or reclassify employees? It involves numerous issues, so it’s not a clear-cut decision.

What California Employers Need to Know About the New Federal Overtime Rule is now available for nonmembers to download. CalChamber members can also access this white paper on HRCalifornia.

CalChamber’s white paper covers:

  • How the new rule affects the federal salary test;
  • Whether the federal rule relating to bonuses, commissions and highly compensated employees applies;
  • Steps you can take to prepare; and
  • Much more.

Upcoming Webinar

On Thursday, October 20, 2016, CalChamber’s employment law experts will present a webinar on Complying with New Federal, State and Local Overtime and Minimum Wage Rules

The California Chamber of Commerce is the largest, broad-based business advocate to government in California, working at the state and federal levels to influence government actions affecting all California business. As a not-for-profit, we leverage our front-line knowledge of laws and regulations to provide affordable and easy-to-use compliance products and services.