The new federal overtime rules, which were scheduled to take effect on December 1, 2016, have been put on hold due to an injunction issued by a federal court last week, thereby prohibiting the Department of Labor from enforcing the new rules. California employers can, therefore, continue to use the California salary test pending resolution by the federal court. The California salary test for determining if an employee can be considered exempt from overtime under most professional, executive and administrative classifications is the payment of compensation equal to at least two times the applicable minimum wage for full-time employment.
We will continue to provide updates until this issue is resolved. Employers are advised to closely monitor this matter.