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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

1. Update the first element of the White
Collar exemptions’ salary test.

– The Federal Government proposes setting a
benchmark that will increase the
predetermined salary minimum each
calendar year.

– Proposal sets the first element of the salary
test at the 40th percentile for annual income.

– Projected to take effect in 2016.

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Overtime Exemption Proposed
Rulemaking

– For 2016, the Department of Labor projects
that the weekly minimum would be between
$921.00 and $970.00.

– The Federal Government estimates that in
2016 this increase will remove exempt status
from approximately 5,000,000 workers unless
salaries rise to the new exemption minimum.

– The weekly minimum salary would change
automatically each subsequent year based on
the 40th percentile benchmark.

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