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.



California Cracks Down on Independent Contractor Status in Gig Economy

September 19, 2019 | Currents - Employment Law, Employment Lessons

California Supreme Court Rejects Workplace Arbitration Agreement

September 13, 2019 | Currents - Employment Law, Employment Lessons

California Court Rejects Motion To Arbitrate PAGA Claim Under State Labor Code

August 16, 2019 | Currents - Employment Law, Employment Lessons

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

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

Common Sense Prevails in California Wage Victory, Falters in PAGA Action

August 15, 2018 | Employment Lessons, Currents - Employment Law


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
Mutual Wage Agreements
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.