You may not be surprised to hear that several lawsuits have been filed around the country challenging the dramatic increase in the amount that must be paid to an employee to qualify as “exempt” from wage and hour laws (as of 12/2016, $47,476 annual salary). Also no surprise, several of those suits seek a court order delaying implementation so the claims can be heard in full.
The first such effort is scheduled for hearing in mid-September, another in November. Stay tuned, but continue preparing to implement. In California, the issue is less draconian, because the federal wage threshold is about five thousand dollars higher than California’s (as of 1/2016, $41,476 annual salary). In other states, the difference is over double (currently $23,600 annual salary) so there is far more incentive to fight the change elsewhere. It is estimated to affect at least 4.2 million workers.
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