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Bryant Whitten, LLP

Many could see pay boost from Obama's new overtime law

As the Obama administration enters its final months and Congress winds down for the summer, several bills are pending which may be interesting to California employees. Specifically, up to 146,000 workers in the state could be affected positively by legislation that establishes a new overtime income threshold. A recent article describes some of the benefits of this law.

With the terms of the new bill, the threshold at which someone qualifies for overtime will increase dramatically. The current threshold of $23,660 per year has not changed in approximately a decade. The new legislation increases the level to $47,476.

What this means to workers in California is that under the increased threshold, they will be eligible to receive overtime pay for which they may not have not been eligible previously. This could boost compensation for millions of Californians. The bill also includes language that requires adjustments and potential increases every three years.

As this legislation is implemented, there is certain to be a transitional period during which some employers fail to adhere to the new law. If California workers begin to see changes in their employment statuses or feel that they are being treated unfairly, it could benefit them to seek counsel from attorneys who have experience in employment litigation. An attorney will be able to evaluate a person's specific job and work history, and he or she will be able to discuss the legal steps that are available if it is determined that the employee's compensation is not in line with mandated overtime regulations.

Source: Los Angeles Times, "Obama administration announces final overtime rule, boosting pay for millions", Michael A. Memoli, May 17, 2016

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