Federal overtime exemption rules return, California training requirements tighten, and a looming 15‑year labor shortage raises new talent challenges. This report delivers a comprehensive evaluation.
With the Federal Overtime‑exemption Standards Reinstated, What Impacts Should Employers be Aware of?
On May 14, 2026, the U.S. Department of Labor issued a technical amendmentreinstating the 2019 salary thresholds for white‑collar exemptions under the Fair Labor Standards Act.，The amendment also removes the 2024 rule text previously struck down by a federal court. The new rule takes effect immediately.
Under the reinstated standards, most exempt employees must earn at least $684 per week, or $35,568 annually.The high‑income exemption remains at $107,432 per year, with a minimum weekly salary of $684.
Attorney Eric Kim recommends that employers use this opportunity to conduct a full review of all exempt classifications, ensuring salary basis, salary level, and job duties tests are properly met. He also advises maintaining thorough documentation, training managers, and closely monitoring federal and state policy developments.
As labor regulations and compliance requirements continue to evolve, KCAL Insurance continues to host our Business Management Seminar Series, bringing together attorneys and industry experts to discuss employment compliance, labor‑law risks, and business management. These sessions help employers stay current with policy changes and reduce operational risk. Employers and managers are invited to register at no cost.
Properly Maintaining Harassment‑prevention Training Records is Required by Law, and Every Detail Matters
Next, we turn to the topic of workplace harassment prevention and record‑keeping.
California law requires employers with five or more employees to provide harassment‑prevention training to all staff. Supervisors must complete two hours of training, and non‑supervisory employees must complete one hour. Training must be finished within six months of hire or promotion and repeated every two years.
In addition to providing training, employers must keep detailed records for at least two years. Required documentation includes employee names, training dates, training format, the trainer’s name, sign‑in sheets, copies of completion certificates, and all written or recorded training materials.
For online learning or webinars, employers must meet additional record‑keeping requirements. Online courses require retaining all written questions and the trainer’s written responses or guidance. Webinars require keeping the session recording, all written materials used by the trainer, participant questions, and the trainer’s written replies. All such records must be preserved for at least two years.
Effective January 1, 2026, SB 513 adds further requirements to harassment‑prevention training records. Employers must also document the trainer’s name, the training date and duration, the core competencies covered, and any certificates or qualifications earned. These materials must be retained for at least two years. For legal guidance or free labor‑law posters, use the buttons below.
A Major Labor‑force Mismatch is on the Horizon. How Should Employers Respond?
Lastly, we examine an important trend in the future talent landscape.
According to the latest analysis from Indeed Hiring Lab, the United States may face a prolonged labor‑force decline over the next 15 years.Falling birth rates, reduced immigration, and accelerating retirements are collectively shrinking the labor pool, with the most significant impact expected to emerge around 2032.
On one hand, the industries projected to face the most severe labor shortages—such as healthcare and construction—are precisely the sectors where AI is least able to provide rapid substitution. On the other hand, more young workers continue to concentrate in white‑collar fields like finance, technology, and business services, which are actually more susceptible to AI disruption. According to Indeed Hiring Lab, AI may influence the labor market in three ways: improving worker productivity, replacing certain job tasks, and creating new employment opportunities.
The report emphasizes that over the next 15 years, the mismatch between labor demand and talent supply will intensify significantly. For employers, the central challenge is optimizing workforce allocation. A skills‑first hiring strategy, stronger reskilling efforts, credential optimization, and more precise job‑matching will be essential to preventing a steep rise in unemployment.
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This article is intended for general informational purposes only and should not be considered legal, tax, or accounting advice. Readers are encouraged to seek professional guidance for advice tailored to their specific circumstances. Click here to schedule a complimentary corporate legal consultation.