Living wages have received a lot of focus over the last year. If you receive a salary of less than $47,476 ($913 per week) and routinely work more than 40 hours a week, expect a change in December. Find out the details and what you can do if your employer takes no action.

1. LAW OFFICES OF
TODD M. FRIEDMAN, P.C.
OVERTIME:
Are You Eligible Under Expanded Federal Regulations?
Presented By

2. Federal employment law protects basic things – for
those who may soon be shifted from exempt to
nonexempt (hourly) these include meal breaks and
overtime pay. At the Law Offices of Todd M.
Friedman, P.C., we provide an overview of the new
minimum salary rules.
California traditionally has had more protective
labor laws, but this will soon change as the federal
minimum salary requirement leapfrogs the current
state requirement of $41,600 (two times the state
minimum wage).

3. This presentation discusses a new rule that increases
the threshold salary for exempt employees from
$23,660 to $47,476. We explain:
Why the change was needed
How to know if you are affected
What options exist for your employer to comply
When changes need to happen

4. Overtime is paid at one and one-half times your typical
hourly wage. Salaried workers have generally not been
eligible for overtime, if paid a salary over a certain
amount. The last update to this salary threshold was
more than 10 years ago in 2004. The 2016 increase was
supported by wage Census Region data. New rules
also require updates every three years.

5. Salaried mid-level managers in food service and
retail, entry-level accountants, administrators in
human resources and higher education along with
state government employees will see changes if they:
Earn less than $47,476; and
Work more than 40 hours each week.
This salary figure was not pulled out of thin air. It is the 40th
percentile for a salaried worker in the lowest wage region in
the country (the South) and less than the initially proposed
amount of $50,400.

6. Estimates suggest that the rule change will affect
more than 4 million salaried employees across the
country. Slightly more women and those with college
degrees will benefit. For families, it could make a
huge difference, allowing time to cheer on a child at a
sports event or pay for a longer vacation.
Percentage
Of Salaried
Workers Affected
By New Rules

7. Are commissions or bonuses
included when calculating if a
salary rises above the minimum?
This is one area of conflict
between state and federal law.
Federal regs allow commissions
or bonuses to make up 10
percent. But state law does not
allow these payments to be
included.
In California, a base salary must
be at $47,476 or above to qualify
a position for exempt status.

8. Employers have several options. These include:
Increase a base salary to meet the new minimum.
Balance workloads so those who earn a salary below
the threshold no longer have to work overtime.
Convert a position to hourly wages (tracking hours
and providing meal/rest breaks would be required).

9. The rules go into effect on
December 1, 2016.
In late September, the House passed a bill
that would delay the rule for another six
months. Even if the measure also passed
the Senate, the president has indicated he
would veto it. Twenty-one states have sued
the administration, arguing the rule would
place a burden on state budgets. This
lawsuit and another filed by the Chamber
of Commerce are unlikely to delay
implementation.

10. Your employer cannot punish you for raising the
salary issue. The law prohibits employer retaliation. If
you are demoted after bringing up the issue, you may
have a basis to bring a lawsuit seeking compensation
and reinstatement to the prior position.

11. The number of salaried
employees entitled to overtime
pay has fallen to 7 percent from
62 percent in 1975.
These rules put fair pay back at
the forefront. If you work in a
salaried position, take the time to
understand what this means
for you.
1975
TODAY
62%
7%
THE NUMBER OF SALARIED
EMPLOYEES ENTITLED TO
OVERTIME HAS FALLEN

12. Free White Paper
Read our white paper
to learn what issues you need
to watch for as the law goes
into effect. If your employer
refuses to take any action in
advance of the December
deadline, you may have legal
remedies.
© 2016 Law Offices of Todd M. Friedman, P.C. All rights reserved. Design and editorial services by FindLaw, part of Thomson Reuters.
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