Effective January 1, 2020, employers must comply with various changes in state and federal law. Here are just a few things to keep in mind:
1. Overtime Thresholds
The salary threshold (or minimum salary that can be paid to those classified as exempt from eligibility for overtime compensation) is increasing at the federal, state and city levels.
At the federal level, the new exempt salary threshold is $35,568 per year.
Some states and cities set higher minimum salary thresholds, which employers must follow where applicable.
In New York City, the minimum salary for overtime exempt employees is now:
| For employers with 11 or more employees: | $1,125/week |
| For employees with 10 or fewer employees: | $1,012/week |
In California, the minimum salary for overtime exempt employees is now:
| For employers with at least 26 employees: | $1,040/week |
| For employers with 25 or fewer employees: | $960/week |
2. Minimum Wage
The minimum wage for most employers in New York City has increased in 2020 to $15/hour.
In California, the minimum wage for most employers in Los Angeles, Malibu, Pasadena and Santa Monica will be $15/hour, effective July 2020.
3. California Consumer Privacy Act
The California Consumer Privacy Act ("CCPA") imposes new rules for consumer data protection, but also applies to information employers obtain from employees and job applicants. Companies with California employees will need to provide notice to job applicants and current employees concerning the collection and use of personal information.
Originally published January 8, 2020
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
