AB2103 would eliminate agreements with non-exempt employees to pay a fixed salary covering regular and overtime hours. Specifically, AB 2103 provides that such a fixed salary "shall be deemed to provide compensation only for the employee's regular, nonovertime hours, notwithstanding any agreement to the contrary." AB2103 express takes aim at – and overturns – the decision in Arechiga v. Dolores Press that recognized and enforced an agreement to pay a non-exempt employee a fixed salary for 66 hours of work per week. Advocates claim the bill would restore California law to its pre-Arechiga status. The Assembly passed AB2103 on May 7, and the bill is now pending for review before the Senate's Committee on Labor and Industrial Relations.
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Employers paying salaries to non-exempt employees beware of proposed legislation
- Fenwick & West LLP
- Daniel J. McCoy and Saundra L. M. Riley
- USA
- June 15 2012
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Nadia Martel
Senior Legal Counsel
Bombardier Recreational Products Inc
