Assembly Bill No. 2103 Outlaws Employment Agreements with Non-exempt Employees for a Salary that Includes Both Regular and Overtime Hours.
On September 30, 2012, the California Governor Jerry Brown signed a bill that amended Section 515 of the Labor Code. The bill did two things: first, it outlawed any agreement under which the employer sets a fix salary for non-exempt employees to compensate for both regular and overtime hours, and, second, it overruled a controversial decision Arechiga v. Dolores Press, Inc., 192 Cal. App. 4th 567 (Cal. App. 2d Dist. 2011).