Page is loading...

California Governor Signs Law Prohibiting Explicit Mutual Wage Agreements

On Sept. 30, 2012, California Governor Jerry Brown signed into law dozens of bills, including AB 2103, which prohibits previously permitted agreements between non-exempt employees and their employers by which the employee could agree to a fixed salary covering all hours worked, including overtime. The purpose of these “mutual wage agreements” is generally to simplify payment to employees that work irregular hours.

T he bill amends California Labor Code section 515 to read, “that payment of a fixed salary to a nonexempt employee shall be deemed to provide compensation only for the employee's regular, nonovertime hours, notwithstanding any private agreement to the contrary.” Thus, any such agreement could no longer cover overtime hours worked.

The law goes into effect on Jan. 1, 2012.



Federal De Minimis Rule Does Not Apply To California State Wage and Hour Claims

July 11, 2019 | Currents - Employment Law, Employment Lessons

ICE Raids on 7-Eleven Franchise Stores Result in 21 Arrests

January 12, 2018 | Employment Lessons, High Stakes Employment Issues


Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.