It has been an eventful year for California employers, and I don’t anticipate a slowing of pace in 2024. Between higher minimum wages, increasingly complicated local ordinances (e.g. paid sick), and changing technological resources, HR compliance continues to be complicated. I’ve put together a few issues to pay attention to in the upcoming year.
Exempt vs. Non-Exempt Classifications
As of January 1, 2024, employees in California must earn an annual salary of no less than $66,560 to meet the minimum threshold requirement for an exemption from overtime. All businesses, regardless of size, must also comply with this threshold requirement. With the salary threshold increasing again (up from $64,480 in 2023), companies may need to reassess their current classifications.
As discussed previously, California’s hostility to non-competes and non-solicitation clauses continues to impose operational and financial burdens on employers. Notices to employees and former employees subject to unenforceable non-competes must be given individualized notice by February 14, 2024.
There will be a continued focus on AI at work. From administrative tasks to recruiting, corporate governance and data privacy, both employers and employees will be learning to adapt to new technology. Finding the right balance between human resources and tech resources will be a challenge for the upcoming year.
In addition to the above, I’m certain the state legislature will throw a few curveballs our way as well, so stay tuned to our blog for updates!