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Federal Overtime Rules


New Federal Overtime Rules Have Little Impact for
California Employers

Schley, Look & Guthrie LLP has recently received several inquiries from its clients regarding the new federal overtime laws and their impact on California employers.  This memo seeks to provide some guidance.

New federal regulations redefining the Fair Labor Standards Act's (FLSA) "white collar" overtime exemptions went into effect on August 23, 2004 . Non-governmental employers in California are spared concern about the new federal overtime regulations.  If your company has employees only in California , these regulations will have no impact.  California overtime exemption regulations are more generous to employees, providing overtime to more classes of employees than even the new federal guidelines.   Under federal law, if state overtime law is more favorable to employees, as in California , it is the state law that sets the standard.

However, if your company operates outside of California , you should become familiar with the federal changes and determine their effect on employment outside California . The US Department of Labor has posted information on its website at http://www.dol.gov/esa/regs/compliance/whd/fairpay/fact_exemption.htm.

As always, if your company has questions regarding overtime laws and their applicability to your company, please feel welcome to contact us.

This Memo was prepared by Stacey L. Fell. For more information, contact:

Stacey L. Fell staceylfell@hotmail.com
Michael D. Schley 805-966-2940   
Joseph F. Look 805-688-9226  
Ian M. Guthrie 805-966-2985  
Brett Locker 805-963-4929  
 
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