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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

2. Benchmark the Highly Compensated Employee
exemption at the 90th percentile for annual income.

– This is a special exemption separate from the three
standard White Collar exemptions.

– It currently requires total annual compensation of at
least $100,000.00.

 Total compensation must include at least $455.00 per week in
salary.

 Includes base salary, commissions & non-discretionary
bonuses.

 Excludes medical and other insurance benefits, expense
reimbursement & discretionary bonuses.

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Overtime Exemption Proposed
Rulemaking

– The Federal Government proposes
benchmarking this exemption at the 90th
percentile for annual income.

– The Federal Government estimates that in
2016 this change will increase the minimum
total annual compensation to $122,148.00.

 Weekly minimum salary is also expected to
increase to match the new White Collar exemption
minimum.

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