California lawmakers introduced a bill to increase the salary for overtime exemption to $47,476. A similar bill was blocked by federal lawmakers last year. The Golden State is now attempting to pass its own bill to increase exemption rates, even though increases have already been scheduled for the next five years. Some say that pushing this bill forward is California’s rebuttal to the federal government blocking the national version.
Currently, the California law distinguishes between large and small businesses in setting exemption rates, but the new bill does not. It is important to note that these exemption increases may not have any bearing on what currently exempt employees are being paid. There would, however, be a larger gap to fill before reaching non-exempt status.
If this passes in California, recruiters will need to be informed of the salary and overtime laws for California candidates versus those in other states.
