On March 22, the Department of Labor (“DOL”) published a new proposed rule that would make several changes to current overtime law. The proposed rule, which is not yet in effect, would require that:
- Employees make at least $679 per week ($35,308 annually) to potentially be exempt from overtime. (The current requirement, which has been in place since 2004, is at least $455 per week or $23,660 annually.)
- Employers be allowed to use nondiscretionary bonuses and incentive payments such as commissions that are paid at least annually to satisfy up to 10 percent of the salary threshold.
- “Highly compensated employees” make at least $147,414 per year (compared with $100,000 under current law).
- Going forward, the DOL commit to periodically reviewing and updating the minimum salary threshold (after a public notice and comment period).
Continue Reading Department of Labor Proposes Rule to Make More Employees Eligible for Overtime
California Governor Jerry Brown recently signed into law an increase in the state’s minimum wage, from the current rate of $8.00 per hour up to $9.00 per hour beginning on July 1, 2014. The minimum wage will increase again to $10.00 per hour, effective January 1, 2016. 
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