Breaking Down California’s New Overtime Rules For 2024

California’s new overtime rules in 2024 represent a clear shift in labor laws. This attempts to adjust the workweek and overtime pay structure to better suit current economic conditions. As a worker in California, knowing these new regulations is imperative to avoiding potential conflicts with employers and safeguarding your rights.

This shift deals with the growing concerns around worker compensation and overtime issues that have been discussed for several years.

New Overtime Rules in 2024

• Changes in Overtime Pay Structure

The main adjustment under the new overtime rules for 2024 is an increase in the income threshold required to be exempt from overtime. Previously, salaried employees earning less than $45,760 were entitled to overtime pay. As of 2024, that threshold rose to $58,240.

This increase means that more employees who were once classified as exempt from overtime will now be eligible for additional pay. They will receive this pay when working beyond the standard 40-hour workweek.

The change is especially important for those in administrative, executive, and professional roles, where the salary threshold typically determines overtime eligibility. Raising the minimum salary means more workers in these positions will be entitled to compensation for hours worked beyond 8 in a day or 40 in a week.

• Increased Protection for Workers

These updated rules are designed to better protect workers from being misclassified as exempt. This is especially important in positions where employees perform duties that would otherwise require overtime compensation.

Many workers have struggled to receive overtime pay because of misclassification. The new overtime rules aim to address and resolve some of these challenges. If an employee’s salary falls below the new threshold, they will automatically be entitled to overtime pay, regardless of their job duties.

For hourly workers, this change may not seem as dramatic. This is because they are already entitled to overtime compensation for hours worked beyond the standard workweek. Salaried employees who were previously exempt may now find themselves receiving proper compensation for overtime. This change can greatly improve their overall income.

• The Impact on Businesses

While the new overtime rules in 2024 offer more protection for employees, they also place new obligations on employers. Companies will need to reassess their payroll and employee classifications to avoid misclassification lawsuits and compliance issues. Businesses will likely have to adjust employee salaries, reclassify certain employees, and potentially increase wages to meet the new requirements.

The adjustment may also lead to employers limiting work hours or changing work schedules to avoid paying overtime. This could influence how businesses operate moving forward. Some may try to reduce working hours for employees to avoid additional costs. For that reason, employees may see changes to their weekly hours.

Handling Overtime Issues and Legal Assistance

As these changes take effect, workers and employers alike may face challenges dealing with the new rules. Employees who believe they are being denied overtime pay or misclassified as exempt should consider getting legal assistance. This will help make sure they are fairly compensated for their work.

An experienced attorney can help workers become familiar with their rights, determine if they are eligible for overtime pay, and take action if needed.

Sirmabekian Law Firm’s Commitment to Employees

Sirmabekian Law Firm knows how difficult it can be to work through the ins and outs of overtime laws. If you believe that the new overtime rules are not being applied properly in your case, our employment law firm is here to help.

If you have questions about your overtime pay or suspect your employer may not be in compliance with the new rules, don’t hesitate to contact us. We offer free consultations to discuss your case and advise on the best course of action. 

Call us at 818-473-5003 or use our online form to reach out.