SB 542 Summary

• Changes language from "shall" to "must" throughout the overtime compensation section of the Improved Workforce Opportunity Wage Act.

• Adds a new salary threshold requirement for the executive, administrative, and professional employee exemption from overtime pay, with amounts ranging from $673.00 per week in 2019 to $1,057.00 per week in 2023.

• Establishes an annual automatic adjustment mechanism beginning January 2024 to increase the salary threshold based on the Bureau of Labor Statistics' second quartile of usual weekly earnings for full-time workers, effective April 1 each year.

• Modifies language regarding compensatory time provisions, including clarifications about when compensatory time must be paid out upon termination and conditions under which employees can use accrued time.

• Reformats the definition of agricultural employment to use a numbered list format instead of narrative text describing farming activities.