The rash of unpaid overtime lawsuits in California recently is about to become even more complex with the highly anticipated release of new federal overtime laws expected in the immediate future. Many San Diego employers are concerned about the impact of these regulations and how they will impact how companies hire, classify and pay employees from this point forward. The Department of Labor (DOL) is expected to implement new rules that will have a sweeping impact on salaried employees. The proposed changes to the Fair Labor Standards Act or FLSA would increase the exemption from overtime for “white collar” or “exempt” employees from the current basis of $455/week ($23,660/year) to $970/week or $50,440 per year. How will this affect existing employees? Will new laws take immediate effect?
The proposed rule changes have been reviewed by the White House Office of Management and Budget, but the final date for publication is still unclear. If the proposed guidelines become the law of the land, employers will be forced to immediately implement changes to overtime policies and the consistent communication and enforcement of these policies throughout the company. Will all employees below the $50,440 income level be entitled to overtime?
Not necessarily, but it will be important to work with the seasoned “lawyers for employers” at the Watkins Firm to gain insight into your unique situation and how it will impact your workforce. Will the new policies exempt those who are performing executive work functions, administrative support to business owners and executives, or professional duties? Will California move to implement different standards, and which regulations will have priority? Will seasonal fluctuations in work cycles lead to an increase in seasonal employment to offset the burden of overtime in peak work loads?
2016 continues to provide extensive challenges for San Diego employers. How will new federal overtime laws affect your business? If you are concerned about the significant rise in employee-related litigation in San Diego, employer policies and procedures, or unpaid overtime exposure we invite you to contact us for a free consultation at 858-535-1511.