Changes to Federal Overtime Rules Moving Forward

May 6 2015 - Compensation, Overtime - Gail Cecchettini Whaley

Over a year ago, President Obama directed the Secretary of Labor to begin creating new federal overtime rules under the Fair Labor Standards Act (FLSA).

On May 5, 2015, the Department of Labor announced that it has finally finished drafting the highly anticipated proposed rules. The proposed rules will be open for public comment in the near future.

In particular, the White House seeks to raise the minimum pay threshold that must be met to qualify for an exemption from overtime pay and to narrow the commonly used overtime exemptions for executive, administrative and professional employees. Depending on exactly what is proposed, the effect could be that more employees will be entitled to overtime pay under the FLSA.

It is too soon to tell whether any proposed FLSA changes will impact California employers. California employees already receive greater protections under state wage-and-hour laws than provided by federal laws.

More information on federal overtime pay can be found on the DOL website.

Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content

Members can learn more about Overtime Pay in California in the HR Library. Not a member? See how CalChamber can help you.

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