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What California Businesses Need to Know About Obama's Dramatic Overtime Changes

5.24.16

The article, “What California Businesses Need to Know About Obama's Dramatic Overtime Changes,” featured in Silicon Valley Business Journal, discussed how California businesses will have an easier time adjusting to the new overtimes rules thanks to current state law that sets the minimum salary for exempt workers at $41,600.

Jason Geller weighed in on how the new rules will impact businesses, moving forward.

Jason said established large companies won't be impacted, but smaller companies can be. He said he's been getting the largest number of phone calls about the change from light manufacturers, followed by retailers and restaurants.

"It's contributed to concern (and) frustration about increased expenses," said Jason, whose clients include companies with less than 50 workers.

Still, Jason said the new rule could lead to increased enforcement activities, and that businesses would be wise to reexamine if all their employees meet the duties test as well.

"From my experience, often an agency will initiate an investigation on one question, and then expand the scope of the investigation ... " he said. "They will focus on both exemptions."

To read the full article, please visit Silicon Valley Business Journal.

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