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US Department of Labor Increases Exempt Employee Salary Requirement Effective December 1, 2016

On May 18, 2016, the United States Department of Labor announced a new rule which will double the salary required for an employee to be exempt from overtime, from $22,660 to $47,476, or $913 per week. Currently, California law requires that employers pay their exempt employees at least twice the state minimum wage, or the equivalent of $41,600 annually. Historically, California employers have not had to worry about the federal minimum threshold because California has always had a higher threshold for exempt employee pay. Beginning December 1, 2016, however, California employers will be required to meet the higher federal threshold of $47,476 annually. This rule change is expected to affe