Increase to the Minimum Salary for Exempt Employees (San Francisco)

Date: June 07, 2016

Time: 8:00–10:00 a.m.

Location: Nixon Peabody LLP, One Embarcadero Center, 18th Floor, San Francisco, CA 94111

The Department of Labor issued final Fair Labor Standards Act regulations today, which substantially increase the minimum salary an employee must be paid to qualify for most overtime exemptions. Under the new regulations, most employees making less than $47, 476 per year ($913/wk) must be treated as non-exempt and are, therefore, eligible for overtime. These regulations take effect on December 1, 2016, so employers should be aware of these new requirements now and make necessary changes before the effective date.

For California employers, the new federal regulations effectively supersede the California exempt employee salary threshold, which is currently $41,600. Thus, all California employers must prepare to comply with the new federal regulations.

This session will include:

  • A summary/reminder of the criteria that must be met to classify an employee as exempt from overtime and potential damages and other ramifications if an employee is misclassified
  • An explanation of the new regulations released today
  • A discussion of the practical implications employers must now consider, including:
    • Whether to increase an employee’s salary to meet the new salary level requirements or reclassify the employee as non-exempt
    • What payment options are available for employees reclassified as non-exempt
    • How to avoid timekeeping pitfalls for employees reclassified as non-exempt
    • What to do when some employees working in a position are earning more than the new salary level while other employees working in that same position are earning less than the new salary level
    • How to communicate with employees being reclassified
    • Using these new regulations to reclassify employees whose exempt status may be questioned because of a failure to satisfy the duties requirements

Our Speakers

  • Robert Dolinko, Partner
  • Marjorie Fochtman, Partner
  • Bonnie Glatzer, Partner
  • Seth Neulight, Partner

Continuing Education

This course is eligible for 1.5 CLE and HRCI credits. See details here.

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