State Legislation: AB 1565 (Thurmond): Overtime compensation to professional employees 

State Legislation: AB 1565 (Thurmond): Overtime compensation to professional employees 

The following is a list of the minimum salaries for exempt employees in California under the current schedule of minimum wage increases (SB 3):

January 1, 2017:               

(Employers with 25 employees or fewer)……………………$41,600

(Employers with more than 25 employees)…………………$43,680

January 1, 2018:

(Employers with 25 employees or fewer)……………………$43,680

(Employers with more than 25 employees)…………………$45,760

January 1, 2019:

(Employers with 25 employees or fewer)……………………$45,760

(Employers with more than 25 employees)…………………$49,920

January 1, 2020:

(Employers with 25 employees or fewer)……………………$49,920

(Employers with more than 25 employees)…………………$54,080

January 1, 2021:

(Employers with 25 employees or fewer)……………………$54,080

(Employers with more than 25 employees)…………………$58,240

January 1, 2022:

(Employers with 25 employees or fewer)……………………$58,240

(Employers with more than 25 employees)…………………$62,400

AB 1565 proposes to accelerate the salary increases by requiring all employers to pay an exempt employee a minimum of $47,472 on January 1, 2018. 

AB 1565 does not distinguish between employers with 25 or fewer employees and employers with 26 or more employees, as SB 3 did when enacting the scheduled minimum wage increases. Rather, this significant increase is applicable to all employers.

Small employers would not reach this threshold until 2020.  Under AB 1565, small businesses will face a $3,792 increase per salaried employee in 2018 and employers with 26 or more employees will face an increase of $1,723 per employee.

POSITION: OPPOSE

STATUS: Third reading in Senate Appropriations

LINK: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180AB1565