Page 80 - CPAAC_Fall2015

Fair Labor Standards Act Update

County Personnel Administrators Association of California (CPAAC) Fall Conference| September 17, 2015
Presented by: Jack Hughes

Overtime Exemption Proposed
Rulemaking

The Federal Government has proposed two
primary revisions to overtime exemptions

1. Increase the weekly minimum salary required
for the three White Collar exemptions and
establish a benchmark to automatically
increase the minimum in future years.

2. Increase the annual minimum salary for the
Highly Compensated Employee exemption
and establish a benchmark to automatically
increase the minimum in future years.

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Overtime Exemption Proposed
Rulemaking

The Federal Government has proposed to
update the first element of the salary test.

– $455.00 per week = $23,660.00 per year
– This sum was last updated in 2004
– $23,660.00 is the 8th percentile for annual

income in the U.S. in 2015
– In other words, 92% of workers meet the first

element of the salary test.
– Current Federal poverty level for a family of

four is $24,000.00

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