The off-duty meal breaks and 30-day termination notices were struck from the final bill. However, the new law stipulates that all domestic employees in California will be entitled to overtime.

The specific overtime requirements will vary depending on the type of worker. For most families, the following overtime stipulations will apply to their employment situation.

Personal Attendants (nannies, baby nurses, senior caregivers, etc.)

• Live-Out – Overtime is required if the employee works more than 9 hours in a day and/or 40* in a 7-day workweek.

• Live-In – Overtime is required if the employee works more than 9 hours in a day and/or 45 hours in a 7-day workweek.* Federal law governed by the Fair Labor Standards Act (FLSA) entitles all live-out domestic workers to overtime rates for all hours worked over 40 in a workweek. Therefore, the weekly overtime threshold of 45 hours mandated in AB 241 is only applicable to live-in personal attendants.

All Other Domestic Workers (housekeepers, personal assistants, chefs, estate managers, etc.)

• Live-Out – Overtime must be paid to the employee if they work more than 8 hours in a day and/or 40 in a 7-day workweek.

• Live-In – Overtime is required if the employee works more than 9 hours in a day.

NOTE: There are additional overtime requirements for employees that work 12 or more hours in a day or 6 or 7 consecutive days in a workweek. Please call our office for details if this employment situation arises for you.

Financial Illustrations of the Cost Impact to Employers

Not all families with overtime situations will be impacted by these changes. If a family employs a nanny 5 days per week and she works 10 hours per day, her payroll will not change:

2013 Wages                                      2014 Wages
Hourly Rate = $16/hr                      Hourly Rate = $16/hr
Regular Hours Worked = 40          Regular Hours Worked = 40
Overtime Hours Worked = 10       Daily Overtime Hours = 5
Additional Overtime Hours = 5

Total = $880                                     Total = $880
(40 X $16) + (10 X $24)                   (40 X $16) + (5 X $24) + (5 X $24)

However, if the same family employs a nanny 3 days per week and she works 11 hours per day, her payroll will be affected by the 2 additional hours of daily overtime each day she works:

2013 Wages                                     2014 Wages
Hourly Rate = $16/hr                     Hourly Rate = $16/hr
Regular Hours Worked = 33         Regular Hours Worked = 27
Overtime Hours Worked = 0        Daily Overtime Hours = 6

Total = $528                                    Total = $576
(33 X $16)                                        (27 X $16) + (6 X $24)

As you can see from the above illustrations, these changes may not affect many families. However, if you need any assistance with this new overtime legislation, please give our office a call. We’re here to help!