Department of Labor Overtime Update
In August of this year, an Obama Administration rule from the Department of Labor was struck down. This law would have allowed over 4.2 million workers all over the United States to have extended overtime pay. That means “white-collar” workers earning less than $47,476 a year would have been required to receive overtime. Currently, the law is set at workers earning less than $23,660 are eligible.
California currently has a higher standard. The minimum compensation under state law is two times the minimum wage for full time employees. With minimum wage being $10.50 per hour, the minimum annual compensation for exempt employees is $43,680. With amounts increasing to $11.00 per hour in 2018, the increase will go to $45,760 per year and will rise annually through 2022.
What does this mean to you? If you are a California employer paying a monthly salary of $3640.00 or less you must pay for overtime hours worked. That monthly threshold amount will go to $3813.34 January 1 of 2018.
HR Ledger can help.
Through our payroll system, we can schedule, automatically archive and keep your payroll records for you..
This is already included in your payroll agreement with HR Ledger and is no additional cost. Please call Malcolm or Scott today at 800-451-1136.