News & Analysis as of

Remember to Calculate Overtime Pay Based on Your Employees' "Regular Rate of Pay"

When a non-exempt employee is entitled to overtime compensation, the hourly rate of pay from which the overtime compensation is calculated is known as the employee's "regular rate of pay." If an employee subject to...more

New Law Prohibits Agreements That Pay Nonexempt Employees A Fixed Salary For Fixed Regular And Overtime Hours

On January 1, 2013, AB 2103 went into effect, explicitly overturning the case of Arechiga v. Delores Press, Inc., 192 Cal. App. 4th 567 (2011), and prohibiting compensation agreements that guarantee nonexempt employees a...more

Overtime Work Is Not A By-The-Job Matter

Recent reports have described more than one scenario in which an employer violated the federal Fair Labor Standards Act because the employer failed to recognize that non-exempt employees' hours worked over 40 were overtime...more

Fixed Salary for Non-Exempt Employees Cannot Include Overtime as of January 1, 2013

Recently, the California Advice Group received the following question from a human resources manager concerning salaried non-exempt employees. As the law is changing in this area, it is a very timely question....more

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