Don’t forget that the salary minimum for exempt white collar positions — managers, administrators and professionals — increases on Thursday, December 1, 2016. The salary threshold will be $47,476 per year or $913 per week. If a manager, administrator or professional does not earn this minimum amount, in the form of a salary, then the employee is not exempt.
Of course, that creates several issues. First, you will be required to pay the employee overtime compensation at 1.5 times the employee’s regular rate of pay. (This is a federal law so there is no obligation to pay double time as is the case after 12 hours in a day under California law.) This may be difficult to track because most managers, administrators and professionals don’t punch a time clock. This means that record-keeping errors may be made. Moreover, an employee’s paycheck stub may be inaccurate or incomplete resulting in further fines, penalties and payment of attorneys’ fees. Ouch!
One more reminder — the December 1 date does not coincide with the “workweek” of most employers. Many employers start a workweek on Sunday or on Monday. Make sure that the salary minimum is paid for the entire workweek, even though December 1st is a Thursday. That may mean starting the increased pay on Sunday, November 27th.
The lawyers at FLC are ready to assist you with questions you may have. 559.256.5000.