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:
- Beginning on July 1, 2019, and annually thereafter, collect the following information on gender pay differentials.
- The difference between the mean salary of male and female exempt employees, as defined, by each job classification or title.
- The difference between the median salary of male and female exempt employees, as defined, by each job classification or title.
- The difference between the mean compensation of male and female board members.
- The difference between the median compensation of male and female board members.
- The number of employees used for the determination of the mean and median salary for male and female exempt employees.
- Beginning July 1, 2020, and annually thereafter, submit the information collected and updated, per the above, to the Secretary of State.
- Requires the information submitted to be categorized consistent with Labor Code §1197.5
- Specifies that “exempt” employee means not subject to overtime requirements as an administrative, executive, or professional employee.
- Requires the Secretary of State, upon receiving the necessary funding appropriation from the Legislature and upon the Secretary of State’s certification of adequate mechanisms in place, to publish the information collected on an Internet Web site available to the public. Covered companies would also be required to publish the same information regarding male and female members of the board of directors.
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.
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