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

In Alvarado v. Dart Container Corporation of California, the California Supreme Court determined how employers must calculate an employee’s overtime pay rate when the employee earns a bonus during a single pay period. While the holding was fairly fact specific, it is a reminder on an often ignored (but critical) issue in California employment

Oregon manufacturing employers have been following the ongoing turmoil surrounding the Oregon Bureau of Labor and Industries’ (“BOLI”) recent interpretation of Oregon’s requirement that manufacturing employees receive overtime when they work more than 10 hours in a day.  In the latest turn, a Multnomah County Circuit Court judge ruled yesterday that, contrary to BOLI’s advice, a manufacturing employer is not required to pay employees daily overtime and weekly overtime when manufacturing employees work more than 40 hours in a work week.  Instead, the judge ruled that the employer must pay the employees the greater of either weekly overtime or daily overtime, but not both. A copy of the opinion in the case (Mazahua v. Portland Specialty Baking LLC) is here.

Here is the background.  
Continue Reading Breaking: Court Rules Against Double Overtime for Oregon Manufacturing Employers

On September 12, 2016, California Governor Jerry Brown signed AB 1066.  The bill, which is the first of its kind in the nation, will entitle California farmworkers to the same overtime pay as most other hourly workers in California.

California law defines employees “employed in an agricultural occupation” broadly to include any employment relating to the cultivation or harvesting of agricultural commodities; the raising, feeding, and management of livestock; or the maintenance and improvement of a farm and/or farm equipment.  Prior to the signing of AB 1066, such employees were entitled to time-and-a-half pay after working 10 hours in a day or 60 hours in a week.  This is substantially different from the overtime laws for other California employees, where overtime pay typically kicks in after eight hours in a day or 40 hours in a week.
Continue Reading Expanding Overtime to Farmworkers: Will California Start a Trend?

The California Supreme Court has ruled that California’s daily overtime requirements apply to work performed in California by non-residents.  In Sullivan v. Oracle Corp., three employees of Oracle who were not residents of California worked as “instructors” and trained Oracle’s customers in the use of the company’s products.  Required by Oracle to travel, the

In a highly visual public expression of its commitment to wage-and-hour violations, and to encouraging employees to file wage and hour complaints, the Department of Labor’s Wage and Hour Division entered the world of Smartphone apps when it recently launched its own “DOL-Timesheet” app for the iPad and iPhone. At first glance, the DOL-Timesheet App