To address California’s dire budget situation in light of deteriorating economic conditions, Governor Schwarzenegger has called a special session of the legislature and announced a plan to get the state budget on track, invigorate the state economy, and generate jobs for the unemployed here. The governor’s proposal calls for tax increases and spending cuts—plus changes in the state’s overtime and meal and rest period laws that could save employers millions and allow more work flexibility to increase productivity. Here are the particulars:
- Eliminate daily overtime. By doing so, employers would have more flexibility with respect to scheduling, such as permitting employees to work 10-hour days (in a 40-hour workweek) without payment of overtime.
- Expand overtime exemptions. Employees in executive, sales, administrative, and professional jobs would automatically be exempt if they earn at least $100,000 annually.
- Clarify break period laws. The plan doesn’t provide details, but the object would be to give employers and employees more flexibility around break scheduling—which could be around the corner anyway depending on how the Supreme Court rules in the Brinker Restaurant Corp. case.
We’ll keep you posted on the status of the legislative session and the governor’s proposals. And you can find out more on the governor’s website.
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