Increase in Minimum Exempt Salary
AB-1565 (Thurmond) proposes to increase the minimum exempt salary to $47,472 annually. Specifically, the bill exempts an executive, administrative, or professional employee, as defined, from overtime compensation if the employee earns a monthly salary equivalent to either $3,956 or an amount no less than twice the state minimum wage for full-time employment, as defined, whichever amount is higher. This bill appears to be a reaction to the failed U.S. Department of Labor’s proposed overtime regulation, which was scheduled to take effect in December of 2016, but was put on hold by a court injunction. California’s minimum salary level for exempt employees is already scheduled to exceed $49,000 by 2019 for businesses with 26 or more employees. AB 1565 would accelerate the time table by one year.
Status: The bill passed in the state assembly on May 30, 2017, and was re-referred to the Appropriations Committee on June 28, 2017.
Gender Pay Differentials
AB-1209 (Gonzalez Fletcher) proposes to require employers with 250 or more employees to publish gender pay differentials for exempt employees on a company website by the year 2020. Specifically, the bill requires an employer that is required to file a statement of information with the Secretary of State and that has 500 or more employees in California to do the following:
Status: AB 1209 passed in the state assembly on May 31, 2017, and was re-referred to the Appropriations Committee on July 10, 2017.
SB-63 (Jackson) proposes to require small employers to provide parental leave. Employers with 20–49 employees in a 75-mile radius would be required to allow employees to take up to 12 weeks of parental leave to bond with a new child within one year of the child’s birth, adoption, or foster care placement.
If enacted, this bill will impose a new leave law on small employers that are presently exempt from the California Family Rights Act, which presently applies to businesses with 50 or more workers.
Status: SB 63 passed in the senate on May 30, 2017, and and was re-referred to the Appropriations Committee on July 13, 2017.
California’s Existing Employment Laws
While these bills work their way through the Appropriations Committee, don’t hesitate to contact Kingsley & Kingsley to speak with one of our experienced labor lawyers if you have questions about any of California’s existing employment laws.
Kingsley & Kingsley
16133 Ventura Boulevard, Suite 1200
Encino, California 91436
Local: 818-990-8300 (Los Angeles Co.)
We are here to answer your questions, discuss your circumstances, and help you.
We also take most cases on a contingency fee basis, which means that you do not pay any fees unless you win or recover compensation.
We understand. You may be going through a difficult time. A California attorney at our law firm can meet with you for a free initial consultation - contact us here.